Theni District Industries Center

Benefits of MSME Registration:

Collateral Free loans from banks:
Mandatory RBI direction for collateral free loan

In order to improve the flow of credit to MSMEs, it has been instructed by the RBI that banks may, on the basis of good track record and financial position of the MSMEs, increase the limit of dispensation of collateral requirement for loans from the existing level of Rs.15 lakh to Rs.25 lakh.
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Collateral free loan up to Rs. 200 lakh under CGTMSE

The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) was launched by the GOI to make available collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme. The Ministry of Micro, Small and Medium Enterprises, Government of India and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises.

Priority Lending:

Our first MSME benefit is priority lending. Whether you’re the proud owner of a cutting-edge technology business or a masala packing company, employing rural women, credit and loan is something that your business will inevitably require for long- and short-term financing. Banks, by virtue of the directions issued by the Reserve Bank of India, have certain earmarked funds that have to mandatorily be given to MSME businesses. Producing MSME certificate benefits to entitle one to avail this loan on a priority basis with fewer hassles.

Lesser interest rates and availability and access to greater credit:

In the absence of collateral security (any property/cash given as a security against a loan), many business owners may find it extremely hard to secure a loan for starting in their industry. However, with an MSME Registration, all banks are specifically instructed to offer loans at interest rates lower than the usual and one may be able to avail this benefit from several banking institutions for their financing needs.

Eligible for Industrial Promotion Incentives

Enterprises that have MSME Registration are eligible for Industrial Promotion Subsidy as may be prescribed by the Union and State Government in this behalf.

    Union Government incentives:
  • Enterprises that have MSME Registration Certificate can avail 50% subsidy for patent registration by making an application to the respective ministry.
  • 15% Back ended capital subsidy up to Rs. 15 lakh under CLcss scheme
    State MSME Incentive Schemes:

    In accordance to the Tamil Nadu MSME Policy - 2021, the following incentives are being extended to Micro, Small and Medium enterprises in the State:

  • Capital Subsidy
  • Low Tension Power Tariff (LTPT) Subsidy
  • Generator Subsidy
  • Payroll Subsidy
  • Back-ended Interest Subsidy (BEIS)
  • Scheme for Promotion of Energy Audit and Conservation of Energy (PEACE)
  • Scheme for Reimbursement of Charges for Quality Certification (Q-cert)
  • Scheme for Leveraging the Intellectual Property Right (IPR) regime
  • Stamp duty exemption
  • Scaling up Subsidy
  • Subsidy for Fund Raising
Support through Government procurement(GeM):

Government e-Marketplace (GeM) is the National Public Procurement Portal for procurement of goods and services for Union and State Government Organisations. It is an online, end-to-end Marketplace for open, efficient & transparent procurement of goods and services. The platform was launched on 9th August, 2016 and has transformed legacy procurement systems through a disruptive marketplace model and the use of technology, analytics and digitisation of processes. GeM has enabled inclusiveness and reduced the cost of doing business with the Government.

The goods procured by the Government range from highly standardized goods like A4 printing paper, printing cartridges and electronic goods like printers and laptops to highly specialized goods like drilling equipment and medical equipment. Similarly, for services, the spectrum to a more complex set of specialized services such as consulting services and engineering services

Protection against delayed payments

The Ministry of Micro, Small and Medium Enterprises gives protection to MSME Registered Business against delay in payments from Buyers and right of interest on delayed payment through conciliation and arbitration and settlement of dispute be done in minimum time. If any micro or small enterprise that has MSME registration, supplies any goods or services, then the buyer is required to make a payment on or before the date agreed upon between the buyer and the micro or small enterprise. In case there is no payment date on the agreement, then the buyer is required to make payment within fifteen days of acceptance of goods or services. Further, in any case, a payment due to a micro or small enterprise cannot exceed forty-five days from the day of acceptance. Then the interest should be paid by the buyer to MSME and the penal interest chargeable for delayed payment to a MSME enterprise is three times of the bank rate notified by the Reserve Bank of India.

Bill Discounting (TReDS) :

TReDS is a RBI regulated trading platform for buying and selling receivables on a bidding model. The TReDS electronic platform enables discounting of invoices/bills of exchange of MSME sellers against large corporates, including government departments and public sector undertakings (PSUs), through an auction mechanism to ensure prompt realisation of trade receivables at competitive market rates. Multiple financiers participate in the auction. It addresses the twin issues facing MSMEs- prompt encashment of receivables and elimination of credit risk. Broadly, the following steps take place during financing / discounting through TReDS:

  • Creation of a Factoring Unit (FU) - standard nomenclature used in TReDS for invoice(s) or bill(s) of exchange - containing details of invoices / bills of exchange (evidencing sale of goods / services by the MSME sellers to the buyers) on TReDS platform by the MSME seller (in case of factoring) or the buyer (in case of reverse factoring);
  • Acceptance of the FU by the counterparty - buyer or the seller, as the case may be;
  • Bidding by financiers;
  • Selection of best bid by the seller or the buyer, as the case may be;
  • Payment made by the financier (of the selected bid) to the MSME seller at the agreed rate of financing / discounting;
  • Payment by the buyer to the financier on the due date.

Entrepreneurship Development Training programme

Entrepreneurship is a culture. This culture is inherited by one if he comes from a family of business. But those who know nothing about a business but capable to run a business otherwise should learn what is entrepreneurship first. It is found that same business faces success at the hands of one entrepreneur and faces failure at the hands of the other one. It is said that the enterprise never fails only the entrepreneur fails. Successful entrepreneurs possess competencies which are commonly found in all of them. An aspiring entrepreneur has to learn about these competencies and acquire them. An Entrepreneurship Development Programme (EDP) lays the way for a successful entrepreneur. One of the primary tasks of EDII is to conduct EDPs targeting fresh Entrepreneurs.

Entrepreneurship Development Programmes of EDII are designed as a life cycle approach and process based. A one day Entrepreneurship Awareness Programme in Phase-1, is done where people interested in launching their own business venture is collected through a signup process. Next a programme on Business Model and Business Plan Preparation for a duration of 7 days will be organized for those who signed up in Phase-1. This will lead them to prepare a business plan and seek financial arrangements. For those who are ready with their Business Plan will be guided through the process of applying for loans through schemes of Government or directly to banks. Once they are ready with their financial arrangements and have obtained sanctions from banks will imparted training in business launch in Phase-3. Thus a EDP in wholesome is offered through a process of selection.

These programmes enable the aspirers of business to finalize their idea of a business in the first phase, develop their business models and prepare a business plan. With the kind of support they face their bankers confidently and bankers also appreciate the competency of the entrepreneurs. This reduces the chances of rejection of loan proposals on the ground of viability. Many are exposed to the avenues before them in selection of projects, funding options, and support institutions.
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Availability of Land /Plots/Space/Flatted Modules


SIDCO will help MSMEs find their footing and construct Industrial Estates that can make those efforts successful. Their fully developed plots come with basic amenities, conducive for rapid development of new and small to medium scale businesses.
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SIPCOT establishes, develops, maintains and manages Industrial Complexes, parks and growth centres at various places across the State of Tamil Nadu. All basic infrastructure such as roads, streetlights, water supply and storm water drains, power supply and other amenities are provided in the Industrial complexes.
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Marketing Support:

Market assistance from the government and Export Promotion:

The Government of India organizes several exchange programs, craft fairs, exhibitions and trade-related events internationally. Being categorized as a micro, small or medium enterprise gives access to all of these platforms for international cooperation on trade-related aspects with different countries and fosters new business connections. The government also incentivizes the export of goods and services by MSMEs by way of subsidies, tax exemption, and technical support.

Marketing support from M-TIPB

MSME Trade and Investment Promotion Bureau (M-TIPB) supports MSMEs to participate in national and international exhibitions and buyer seller meets. Financial subsidy on registration/entry fees, airfare and lodging is provided to participants.
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Purchase Preference to Micro & Small Enterprises

The Government of India in exercise of the powers conferred in section 11 of the Micro, Small and Medium Enterprises Development (MSMED) Act 2006 notified the ‘Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012’ in respect of procurement of goods and services, produced and provided by micro and small enterprises. The Order shall apply to the Central Government Ministries, Departments and Public Sector Undertakings to procure a minimum of 25 per cent of their annual value of goods or services from Micro and Small Enterprises.

In accordance with section 30A of the Tender Transparency in Tender Rules, in case of Procurement of Goods & Services in Tamil Nadu, wherever it is possible for the procuring entity to divide the award of tenders to more than one supplier or service provider, the tender document shall clearly indicate that up to 25% of the total requirement in the procurement may be awarded to domestic enterprises, not being the lowest tender, in respect of only of Goods manufactured or produced or services provided or rendered by them , subject to such domestic enterprise is willing to match the price of the lowest tender and the preferential award shall extend only to the lowest tender among the domestic enterprises who are substantially responsive and technically qualified.

EMD Exemption:
  • Units Registered with UAM and Udyam Registration are exempted from payment of Earnest Money Deposit (EMD)
  • The units registered under Single Point Registration Scheme of NSIC are eligible to get Tender sets free of cost and exemption from Earnest Money Deposit (EMD)

MSME Registration Certificate (Udyam Registration):

Government has organised a full system of Facilitation for Registration Process
  • An enterprise for the purpose of this process will be known as Udyam and its Registration Process will be known as 'Udyam Registration'
  • A permanent registration number will be given after registration.
  • After completion of the process of registration, a certificate will be issued online.
  • This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed.
  • There will be no need for renewal of Registration.
  • Our single window systems at Champions Control Rooms and at DICs will help you in the process.
  • Registration Process is totally free of cost.
  • MSME registration process is fully online, paperless and based on self-declaration.
  • No documents or proof are required to be uploaded for registering an MSME.
  • Only Adhaar Number and GST will be enough for registration.
  • PAN & GST linked details on investment and turnover of enterprises will be taken automatically from Government data bases.
  • Our online system will be fully integrated with Income Tax and GSTIN systems.
  • Having PAN and GSTIN (As per applicablity of CGST Act 2017 and as notified by the ministry of MSME vide S.O. 1055(E) dated 05th March 2021) is required for Udyam Registration with effect from 01.04.2021.
  • Those who have EM-II or UAM registration or any other registration issued by any authority under the Ministry of MSME, will have to re-register themselves.
  • No enterprise shall file more than one Udyam Registration. However, any number of activities including manufacturing or service or both may be specified or added in one Registration.

Go to Registration portal

Facilitation for Delayed Payments (MSME SAMADHAAN):

Delayed Payments to Micro and Small Enterprises under Micro, Small and Medium Enterprise Development (MSMED) Act, 2006
Related Provision

The Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 contains provisions of Delayed Payment to Micro and Small Enterprise (MSEs). (Section 15- 24). State Governments to establish Micro and Small Enterprise Facilitation Council (MSEFC) for settlement of disputes on getting references/filing on Delayed payments. (Section 20 and 21)

Nature of assistance

MSEFC of the State after examining the case filed by MSE unit will issue directions to the buyer unit for payment of due amount along with interest as per the provisions under the MSMED Act 2006.

Who can apply

Any Micro or small enterprise having valid Udyam Registration Certificate can apply.

Salient Features
  • The buyer is liable to pay compound interest with the monthly rests to the supplier on the amount at the three times of the bank rate notified by RBI in case he does not make payment to the supplier for his supplies of goods or services within 45 days of the acceptance of the goods/service rendered. (Section 16)
  • State Governments to notify (i) Authority for filing Entrepreneur Memorandum (ii) Rules of MSEFC and (iii) Constitution of MSEFC
  • All States/UTs have notified Authority for Filing Entrepreneur's Memorandum, 33 States/UTs (i.e. except Arunachal Pradesh, Assam and Manipur) have Notified rules of MSEFC and all the 36 States/UTs have constituted MSEFCs, as per provisions laid down under MSMED Act 2006.
  • Every reference made to MSEFC shall be decided within a period of ninety days from the date of making such a reference as per provisions laid in the Act
  • If the Appellant (not being the supplier) wants to file an appeal, no application for setting aside any decree or award by the MSEFC shall be entertained by any court unless the appellant (not being supplier) has deposited with it, the 75% of the award amount. (Section 19)

The provisions under the Act are implemented by MSEFC chaired by Director of Industries of the State /UT having administrative control of the MSE units. State Government/UTs are requested to ensure that the MSE Facilitation Council hold meetings regularly and delayed payment cases are decided by the Councils within a period of 90 days as stipulated in the MSMED Act, 2006.

MSME Samadhaan Portal - Ease of filing application under MSEFC, an Initiative from Ministry of MSME, Govt. of India

Ministry of MSME has taken an initiative for filing online application by the supplier MSE unit against the buyer of goods/services before the concerned MSEFC of his/her State/UT. These will be viewed by MSEFC Council for their actions. These will be also visible to Concerned Central Ministries, Departments, CPSEs, State Government, etc for pro-active actions
Go to SamadhanPotral:

Facilitation for obtaining Pre Establishment and Post Establishment Clearances (Single Window Portal):

Online Single Window Portal to deliver requisite services to investors in a time-bound and transparent manner during the Pre-establishment stage, Pre-operation stage, and Renewal stage. District Industries Centre of respective district is the designated nodal agency for facilitating single window approvals for MSMEs in the State of Tamil Nadu.
Go to Single Window Portal

Export Facilitation

An Government Organisation namely MSME Trade and Investment Promotion Bureau is engaged in supporting and facilitating MSMEs in various aspects related to their business, including discovering new market opportunities for products of MSMEs in the overseas market etc.,
Go to MSME Trade and Investment Promotion Bureau: