What are MSMEs?

MSME stands for Micro, Small and Medium Enterprises. According to the proposed definition, an enterprise is considered an MSME depending on its annual turnover. A company with turnover less than or equal to 5 crores is considered a micro-enterprise, between 5 to 75 crores is a small enterprise, and between 75 to 250 crores is a medium enterprise.

What are Distressed Asset Funds?

Assets whose value are depressed for reasons related to the issuer and not general market conditions. Distressed asset investing and emerging markets distressed investing are generally undertaken by a small number of firms.

Subordinate Debt Scheme for MSMEs

The government has launched a credit guarantee scheme for subordinated debts which is expected to provide relief to 2 lakh MSMEs in the country. The scheme supports promoters of the operational MSMEs which are financially pressured under the current banking rules.

The Consortium of Indian Associations (CIA) has come together for a Save MSME campaign over the Indian government's launch of the 'Distressed Assets Funds-Subordinate Debt for MSMEs.

The scheme will provide Rs. 20,000 crores to promoters who can take loans from banks to invest in their MSMEs as equity, thus maintaining liquidity and debt-equity ratio. 90% guarantee coverage for this sub-debt will be given under the scheme and 10% will come from the concerned promoters.

Benefits of MSME Registration

This scheme is one of the newest benefits of being registered as an MSME. Over two lakh MSMEs in the country will benefit from this scheme and receive financial aid. The MSME Certificate helps a business get recognized by the Government of India. The GoI supports all micro, small, and medium enterprises as they are a crucial part of the Indian economy and give jobs to many. Some other benefits of MSME registration are as follows;

Collateral-free Bank Loans- The government of India has made collateral-free loans available for every business registered as an MSME. Several initiatives such as these guarantee funds to micro, small, and medium enterprises. Only companies that fall under the bracket of MSMEs and are registered with the GoI for the same are eligible for this scheme. The Credit Guarantee Trust Fund Scheme was introduced by the Government of India, the Small Industries Development Bank of India, and the Ministry of Micro, Small, and Medium Enterprises to make sure this scheme is implemented for all MSMEs.

Subsidy on Patent Registration- Patent registration is one of the most important benefits of MSME registration. A subsidy of 50% is offered to the MSME-registered enterprise

Interest Rate Exemption on Overdrafts- An overdraft is a deficit in a bank account caused by drawing more money than the account holds. An MSME certificate can provide a 1% benefit on the overdraft. This may vary from bank to bank.

Protection against Payments (Delayed Payments)- Sometimes the buyers of services or products from the MSMEs or SSIs tend to delay the payment. The Ministry of Micro, Small and Medium Enterprises help MSMEs in such situations by giving them the right to collect interest on the payments that are delayed from the buyer’s side. In this way, such disputes are settled in minimum time. The buyer is required to make the payment on or before the agreed date of payment or within 15 days from the day they had accepted the goods and services. On delay of payment for more than 45 days the buyer will pay monthly compound interest at a rate which is three times the rate that is notified by the Reserve Bank of India.

Industrial Promotion Subsidy Eligibility- The companies registered as MSMEs can also apply for the subsidy which is available for industrial promotion. This is provided by the government of India to help the organizations under the MSME Registration scheme.

Fewer Electricity Bills- This is a major benefit of the MSME certificate and is a concession that is applied for all MSMEs in India. An application along with an MSME certificate must be sent to the electricity department which allows them to provide a subsidy on the electricity bills of the company which helps save costs.

ISO Certification Charges Reimbursement- An essential benefit of the MSME certificate is that registration can ask for the reimbursement of the fees for the ISO registration certificate. This benefit has helped several organizations to get their registration done with both MSME and the ISO sector.

Process for MSME Registration is Changed to Udyam Registration

If your business’s annual turnover falls in the bracket of MSMEs it is essential that you register the business as an MSME with the government to avail all the benefits and aids the government is providing for these enterprises. The simple 5-step process for registration as Udyam is:

• Step 1: Visit the online registration portal Udyam Registration


• Step 2: Fill the application form with all the correct details and upload soft copies for all the documents required for the registration process.


• Step 3: Our executives will get in touch with you to verify your application and process the application.


• Step 4: Once the application is approved, make the payment of the application fees for Udyam Registration.


• Step 5: In 1-2 hours the valid MSME certificate will be issued and mailed to the registered email address from the application form.

Why Choose Our Services?

We are home to an entire group of experts and professionals who are very well-versed in the nuances of processes for business certification according to government rules. We have a very satisfied customer base and our clientele ranges from new businesses that are just starting in their respective industries to well-established businesses. All our customers are very happy and satisfied with our services and also come back to us for help in any future registration and certification processes.

Through portals like https://msmeregistrar.org/ which offer quick and hassle-free registration online from the safety of your home registration has never been easier. Instant online MSME registration through the above portals also saves time by cutting out the excess time required to get registered offline in government departments or on government sites which have a very complicated and long procedure that is not very customer-friendly and very confusing for new business owners and first-time registration customers.

If you are facing any problem while filling out the online MSME registration form, or have any doubts on MSME Registration then you can reach us at; Facebook Page: @msmeregistrar.org
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