Positive and Negative Impact of MSME

In a simple tone, MSME is the backbone of countries such as India. They are the primary contributors who are interested in the socio-economic development of the country.

According to statistics, India constitutes around 6.3 crore MSMEs. Online MSME registration has increased by 18.5% year over year. This sector contributes around 29% of GDP to national and international trade.

The MSME term stands for micro, small, and medium enterprises that are the backbone of countries like India. It is also known as the small-scale industry (SSI). The online MSME certificate is known as Udyog Aadhar or Udyam Registration. It is advisable to have MSME certification to acquire the privileges and benefits of it.

What are the categories of MSME?

MSME has two categories of enterprises: manufacturing and service enterprises, Take a look at the details:

  • Manufacturing Enterprises
  • Service Enterprises

There are two types of mandatory MSME registration that you must know about:

1. Provisional MSME Registration

This MSME certificate will allow you to visit the firms during the pre-investment period. It has the following benefits:

  • It makes it easier to obtain approvals, accommodations, and land.
  • It is easy to receive clearances and NOCs.

2. Permanent MSME registrations

It is permitted for the firm that already exists. Check out the benefits below:

  • Privileges from tax.
  • Purchase and price are preferred.

What are the positive benefits of MSME?

  • Loans at a lower rate of interest.
  • Allow you to avail the benefits of govt. Schemes
  • For the first few years after the commencement of the business, an MSME certification gives you tax benefits regarding central excise and direct taxes.
  • Provides you with eligibility for the Industrial Promotion Rate subsidy.
  • Minimize the cost of trademark and patent registration
  • The positive impact is Market Expansion
  • Better cash flows.
  • Benefit in the case of sales tax and other subsidies given by the government.

How to Register A Company In india

The negative impact you must consider of MSME

  • Dual control
  • The burden of threshold limit
  • Maximizes the cost of products for businesses
  • Absence of proper digital knowledge
  • High compliance costs
  • High tax burden for service providers.

How does JR Compliance make MSME certification easier for you?

  • The consultant will educate you regarding every aspect of MSME registration.
  • To guarantee appropriate accuracy, MSME consultants online will complete your entire documentation process.
  • The specialized MSME consultants online ensure to provide you with complete assistance from the initial to the last step of registration.
  • The consultant guarantees to invest resources and time into taking initiatives and steps to meet the standard requirements.
  • If you come across any query regarding the MSME registration certification process, you will be provided with 24*7 support and consulting.


The MSME registration process can be tricky and complicated for you. This is where JR Compliance solves your problem. JR is experienced in completing over 10,000+ company registrations and making the process hassle-free for their clients. 

For experts' opinions and updates on MSME certification or the MSME registration process, feel free to contact JR Compliance. We want to make this process easier for you.