MSME has several main benefits for a business entity under India’s Micro, Small and Medium Enterprises Development Act (MSMED). MSME registrations help facilitate access to varied government programs and schemes that allow businesses the opportunity of growth, compete, and survive in an economy. Here’s the reason registration as an MSME should be important to your company:

Ease of Availability of Government Programmes/ Schemes;
MSMEs receive special government schemes such as credit facility, subsidies, and funding for expansion. There are several schemes for marketing assistance, technology upgradation, and skill development.

Easier Credit Facility:
MSME registration business can avail lower rate of interest and easy credits under schemes like Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

Tax Benefits:
MSME registration provides tax exemptions and access to tax benefits under various provisions of the Income Tax Act. It further saves from penalties for non-compliance.

Protection from Delayed Payments:
MSMEs are legally protected against delayed payments from larger firms. The MSMED Act makes it possible for MSMEs to claim interest on overdue payments, ensuring timely payment for goods and services.
Better Growth Opportunities:
Registered MSMEs have a higher chance of participating in government tenders and are preferred in many government contracts.

Recognition and Trust:
MSME registration enhances the credibility and recognition of a business in the market, creating trust with suppliers, customers, and financial institutions.