Before knowing the advantages/benefits, it is very important to understand what MSME is and why it is important to study MSME. MSME stands for micro, small and medium enterprises which mean the enterprises which are engaged in providing or rendering services.
MSME proves to be a boon in improving the fiscal condition of the country. Government of India plays a crucial role in the registration of MSME act. They strive to promote it through various schemes. Now let’s read what each word of MSME means:
MICRO: micro enterprise is an enterprise where investment in equipment’s does not exceeds ten lakh rupees.
SMALL: small enterprise is an enterprise where investment in equipment exceeds twenty lacks but does not exceed two crores.
MEDIUM: medium enterprise is an enterprise where investment in equipment is more than two crore but less than five crores.
MOREOVER, MSME registration in Delhi is very simple as you do not have to stand in queue to get the registration. Everything has become digitized i.e., from application form to the payments on the popular website i.e., www.msmeregistration.org.
There is a major reason behind the introduction of any act. Similarly, government of India introduces MSME act for the welfare of enterprises which in turn proves to be beneficial for enterprises. Certain advantages of the registration of MSME are:
Create more employment:
Employment is very essential to live a comfortable and stress free life. With introduction of MSME registration, more and more employment opportunities are available in rural as well as urban areas. Its main aim is the establishment of enterprises due to which it creates more and more employment in order to accomplish their aim. Employment opportunity proves to be boon in improving the livelihood of people.
LOW COST LABOUR
Low labour cost is one of the greatest advantages of MSME registration as it creates employment opportunity for people at low cost. In this, people are available to work at low wages with minimal benefit. So it eventually helps the government improving the conditions of enterprise by paying minimal wages. People provide best of their services at low cost which is not only helpful for government but also helpful for the common people.
There is not much amount required for the registration of MSME. It is not mandatory to get register under MSME but registration provide several benefits which makes our lives simpler such as lower rate of interest, easy process for loan sanctioning. MSME registration is introduced to help labor economy than the large corporate.
LOW COST PRODUCT
As main aim of the government behind the establishment of MSME act is to improve the condition of enterprise with improving the livelihood of labour class people. Hence, governments decide to sale goods and services to them at lower cost. Moreover, later government had introduced many other acts like Goods and Service Tax, to improve the condition of poor people in which they decide to provide daily essential on Rashan cards and many other benefits. Hence GST registration is mandatory for the firms whose yearly turnover is above twenty lakhs.
Hence, MSME registration is very essential as it provide several benefits. Moreover, GST registration in Gurgaon is a simpler process and provides many other benefits.