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Registration under MSMED Act, 2006
The President under Notification dated 9th May 2007 has amended the Government of India (Allocation of Business) Rules, 1961. Pursuant to this amendment, Ministry of Agro and Rural Industries (Krishi Evam Gramin Udyog Mantralaya) and Ministry of Small Scale Industries (Laghu Udyog Mantralaya) have been merged into a single Ministry, namely, “MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SUKSHMA LAGHU AUR MADHYAM UDYAM MANTRALAYA)”
Micro, Small & Medium Enterprises - The Engine of inclusive growth & development
The registration under 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.
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
(Investment in Plant and Machinery)
(Investment in Equipments)
|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|
Provisional Registration: Provisional registration is granted to a unit at its pre- investment period to enable it to take necessary steps to apply for financial credit, land or an industrial set, water, power or telephone connections, etc.
Permanent / Final Registration : A provisionally registered industrial unit when it is about to go into production is to apply for 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.
Which are the classes of enterprises that may qualify for Reistration?
All classes of enterprises, whether Proprietorship, Hindu undivided family, Association of persons, Co-operative 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 letter heads, invoices etc.
The Micro and Small Enterprises should mention/get printed on their letter heads, supply order sheets, invoices, bills and other relevant documents, the MSMED Registration/Entrepreneurs Memorandum (EM) Number allotted by a competent authority, so that there remains an identification of being a MSE supplier
What are Micro, Small and Medium Enterprises (MSME) and how MSME (Manufacturing) are 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:
(a) 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.
(b) 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:
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
Investment in equipments
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
Micro Small Medium Enterprise is known as MSME this is decided on the basis of Plant & Machinery or Equipments in the Unit or organisation.
This registeration is useful for Manufacturer, Service Provider, Professionals, Job Workers, Information Technology, New Enterprenuers, New Businesses, New Firms or Private Limited or Limited company to get Government benefits for Loan, Interest subsidy, capital subsidy, ISO expenses reimbursement, Import Export Code (IEC Code), Government Tenders Earnest Money Deposit - Security Deposit waiver also for tender fees waiver.
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