MSME Certificate aims at the promotion and development of micro, small and medium enterprises and classifies the enterprise into different categories depending on their investment.
MSME holders are offered easy loans with a lower rate of interest applicable for all public and private sector banks. They also give preference if there is any delay in making the payment.
Enterprises with MSME Certificate have a benefit of 1% exemption on the interest rate on Overdraft.
The Government of India has exempted payment of the excise duty for MSME holders whose value of turnover did not exceed Rs. 1.5 Crore on the first day in the financial year.
However; the benefit of excise exemption is only for those goods which are sold or purchased under the brand name of its manufacturer.
For example – Excise Duty of 10% is levied on ready-made and Made-up articles for MSME holders.
MSME holders or Start-ups can get a refund of up to 80% from the Government on the patent application. The government also grants a sanction of Rs. 2 Lakh for filing an International Patent application.
The individual/company gets a rebate of 50% on trademark filing if they possess an MSME Certificate.
Most of the states offer different schemes or services to promote small businesses. Exemption of Sales tax, credit facilities, developed sites for warehouse construction, hire/purchase of machinery and electricity bill concession.
To support MSME holders, the Central Government of India has announced different schemes to provide credit support to them.
A trust named Credit Guarantee Fund Trust for Micro and Small Enterprise (CGTMSE) is established for individuals to provide a collateral free loan of up to Rs. 50 Lakhs. This scheme also includes –
This scheme provides an incentive to all those small scale business/industries that have ISO 9000/ISO 14001/HACCP certifications. These incentives are meant for technological up-gradation, quality and environment management.
Almost 75% of the acquiring charges (certifications) are refunded which subject to a maximum of Rs. 75,000 in each case.
This scheme focuses on enhancing productivity and improving the availability of different services to medium and small enterprises. The assistance is provided on
A separate council Micro and Small Enterprises Facilitation Council is established for timely resolution of disputes with the customers.