Small businesses are the heart and soul of any economy. The Union Ministry of MSMEs acknowledges the importance of micro, small and medium enterprises (MSME) to the country’s economic progress and offers a range of benefits and incentives.
Creating a comprehensive database of all MSME units in the country is the goal of the MSME databank. It will help them with the procurement process under the Indian Government’s Public Procurement Policy.
MSME databank registration is essential to obtain benefits:
MSME databank registration is essential to make use of these benefits and ensure a smooth authorisation process for receiving the benefits. The registration process for Udyam (MSME) is paperless and free. The MSME database is one step towards Digital India for MSMEs.
It’s worth noting that the MSME databank, Udyog Aadhaar, and Udyam registrations are all the same; just the name has changed. Udyam Registration is the most recent method of registration in the MSME databank.
The benefits of MSME databank registration
The following are the benefits of MSME databank registration and how they can help your business:
- Companies enrolled in the MSME databank are eligible to become government suppliers. The government has integrated the system with the Trade Receivables Electronic Discounting System (TReDS) and the Government e-Marketplace (GeM). Such links help small businesses a lot because they make it easy for them to join bill discounting mechanisms and the government’s online procurement system for free and automatically.
- If your business or company is registered as an MSME under the MSME Act, you can get 1% off of your overdraft through the Credit Guarantee Trust Fund Scheme.
- The government of India introduced the Credit Guarantee Fund Scheme (CGS) for Micro and Small Enterprises to provide collateral-free loans to the small and medium enterprise sectors. This program ensures that micro and small businesses have access to financing.
- Businesses registered under the MSME Act receive a generous 50% discount from the normal fee to encourage them to apply for patents. This may be obtained by contacting the relevant ministry and submitting an application. It has also begun a nationwide public awareness campaign to raise public understanding of the importance of intellectual property rights.
- MSME databank registered businesses may carry over their MAT (Minimum Alternate Tax) credit for up to 15 years instead of the standard 10 years. So that is a distinct benefit.
- Many of the laws that govern banking, excise, and direct taxes have added the word “MSME” to the notifications that say companies aren’t subject to certain taxes.
- To help MSMEs, various state governments have established special industrial estates and offered tax breaks. They have also reduced electricity tariffs and granted assistance for capital investments.
- You can get all the information you need about MSMEs and keep your company’s information up-to-date on one single portal.
Use MSME databank registration to avail business loans:
When seeking loans, MSME database registration information may also be used as business evidence. Since the MSME databank has all your information in one place, it is easier for you to apply for a business loan and share your information with your respective lender easily.
To fund the working capital needs of your MSME business, you can also apply for an unsecured business loan from leading lenders and financial institutions.
One of the leading NBFCs, Bajaj Finserv, offers a collateral-free business loan with minimal paperwork and simple eligibility.