Understanding SSI/MSME Registration
SSI/MSME Registration stands for Small Scale Industries (SSI) or Micro, Small and Medium Enterprises (MSME) and the act governs all the SS/MSME establishments registered under it. Once registered under the SSI/ MSME act the establishments can enjoy a number of benefits including:
• priority sector lending
• excise and direct tax exemptions
• capital investment subsidies
• power tariff subsidies
• To register as an MSME, a manufacturing unit must have at max 10 Crore Indian rupees invested in the plant and the machinery.
• In case of a service organization, he maximum investment limit is INR 5 Crore only.
MSME/SSI registration is a voluntary registration that businesses seek to take advantage of subsidies and other benefits.
Advantages of SSI Registration:
• Cheaper bank loans
• Easy access to credit
• Quicker approvals from state and central government bodies
• Tax rebates
• Cheaper infrastructure, including electricity
• VAT exemptions.