Table of Contents
- Micro, Small & Medium Enterprises - The Engine Of Inclusive Growth & Development
- What Are Micro, Small, And Medium Enterprises?
- Benefits:
- Which Are The Classes Of Enterprises That May Qualify For Registration?
- How & why Become An Msme?
- What Are Micro, Small, And Medium Enterprises (msme) And How Msme (manufacturing) Is Different From Msme (services)?
- Manufacturing Sector
- Service Sector
- Msme Registration

Micro, Small & Medium Enterprises - The Engine of inclusive growth & development
The registration under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 is for facilitating the promotion and development and enhancing the competitiveness of Micro, Small, and Medium enterprises.MSME stands for micro, small and medium enterprises and any enterprise that falls under any of these three categories. MSME enterprises are the backbone of any economy and are an engine of economic growth, promoting equitable development for all.
What are Micro, Small, and Medium enterprises?
The following slabs have been prescribed under the MSMED Act to determine the status of the Enterprise:
No. |
Type of Enterprise |
Manufacturing Industry
|
Service Industry
|
1 |
Micro |
Does not exceed Rs. 25 Lakh |
Does not exceed Rs. 10 Lakh |
2 |
Small |
Exceeds Rs. 25 Lakh but does not exceed Rs. 5 Crore |
Exceeds Rs. 10 Lakh but does not exceed Rs. 2 Crore |
3 |
Medium |
Exceeds Rs. 5 Crore but does not exceed Rs. 10 Crore |
Exceeds Rs. 2 Crore but does not exceed Rs. 5 Crore |
Permanent / Final Registration: A provisionally registered industrial unit when it is about to go into production is to apply for a grant of Permanent / Final Registration. An existing and functioning industrial unit is eligible to apply for Permanent / Final Registration without going into provisional registration processes.
Therefore, to support and promote MSMEs, the Government of India through various subsidies, schemes and incentives promote MSMEs through the MSMED Act. To avail of the benefits under the MSMED Act from the Central or State Government and the Banking Sector, MSME Registration is required.
Benefits:
- Collateral Free loans from banks
- Special consideration on international trade fairs
- Bar Code registration subsidy
- Waiver in Security Deposit in Government
- Concession in electricity bills
- Reimbursement of ISO Certification
- NSIC Performance and Credit ratings
- 1% exemption on the interest rate on OD
- 50% subsidy for patent registration
- Reduction in interest rates from Banks
Which are the classes of enterprises that may qualify for Registration?
All classes of enterprises, whether Proprietorship, Hindu undivided family, Association of persons, Cooperative society, Partnership firm, Company or Undertaking, by whatever name called can apply for the registration and get qualified for the benefits provided under the Act. Printing of MSMED Registration/EM Number on the letterheads, invoices, etc.
The Micro and Small Enterprises should mention/get printed on their letterheads, supply order sheets, invoices, bills, and other relevant documents, the MSME Registration/Entrepreneurs Memorandum (EM) Number allotted by a competent authority so that there remains identification of being an MSE supplier
How & Why Become an MSME?
Micro, Small, and Medium Enterprises (MSME) is an acronym for Micro, Small, and Medium Enterprises. MSME industries are the backbone of the economy in a growing country like India.
More than 6000 types of items are manufactured in India's MSME sector, which accounts for 45 percent of total industrial employment, 50 percent of total exports, and 95 percent of all industrial units. When these industries expand, the country's economy as a whole expands and flourishes. SSIs are the abbreviation for these industries.
The MSME Act allows companies to register regardless of whether they are in the manufacturing or service industries. Although MSME registration is not yet mandated by the government, it is advantageous to have one's firm registered under it because it offers numerous benefits in terms of taxation, business setup, credit facilities, & financing.
What are Micro, Small, and Medium Enterprises (MSME) and how MSME (Manufacturing) is different from MSME (Services)?
In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:
- Manufacturing Enterprises- The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the Industries (Development and Regulation) Act, 1951). The Manufacturing Enterprise is defined in terms of investment in Plant & Machinery.
- Service Enterprises: The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.
The limit for investment in plant and machinery/equipment for manufacturing/service enterprises, as notified, vide S.O. 1642(E) dtd.29-09-2006 are as under:
Manufacturing Sector
- Enterprises
- Investment in plant & machinery
- Micro Enterprises Does not exceed twenty-five lakh rupees
- Small Enterprises More than twenty-five lakh rupees but does not exceed five crore rupees
- Medium Enterprises More than five crore rupees but does not exceed ten crore rupees
Service Sector
- Enterprises
- Investment in equipment
- Micro Enterprises Does not exceed ten lakh rupees:
- Small Enterprises More than ten lakh rupees but does not exceed two crore rupees
- Medium Enterprises More than two crore rupees but does not exceed five core rupees.
MSME Registration
For availing of multiple schemes and subsidies provided by the government, obtaining MSME Certificate from the Ministry of Micro, small and medium enterprises is mandatory. The primary benefits may include tax exemption, statutory support, capital investment, and power tariff subsidies. The eligibility criteria for MSME Registration categorized in micro, small and medium enterprises. The micro-companies having investment less than 25 lakhs, small enterprises having investment between 25 and 5 crores including machinery and plant, and 5-10 crores for the medium enterprise including machinery.
Before applying for MSME License consider this business turnover criterion for availing the government privileges. At first, the provisional certificate is provided then after the commencement of the business permanent on is issued by the government. Units employing less than 50/100 workers can apply for MSME Registration. This provision is voluntary not a compulsion. If a unit doesn’t violate any locations restrictions, plant and machinery value is within the set limits and have obtained all the important administrative clearances or NOC from the pollution control board are considered as eligible for obtaining the MSMECertificate.
For MSME Registration you will require business Address proof, copies of sale and purchase bill, partnership Deed/ MoA and AoA, copy of license and bills of machinery, rental agreement, copy of PAN Card and Directors, Electricity or Telephone bill, and submission of board resolution and Power of Attorney. We will help you file MSME Registration without involving in endless complications.