MSME Registration

What are Micro, Small & Medium Enterprises ?

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 namely Manufacturing Enterprises and Service Enterprises.

Benefits of MSME Registration:

Collateral Free loans from banks.
Subsidy on Patent registration.
Exemption on interest rate on overdraft/Loan.
Eligible for Industrial Promotion subsidy.
Protection against delayed payments.

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MSME registration is required for micro, small and medium sized enterprises to avail various incentives provided under the MSMED Act.

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Classification of MSME basis Investment in plant & machinery and equipment

1. 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) or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use. The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery.

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

2. Service Enterprises: The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.

Enterprises	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 crore rupees