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MSME or SSI or Udyog Aadhaar Registration can help a small business to avail various benefits/ subsidies from Government of India together with ensuring timely payment from its buyers. Under the new definitions, the distinction between manufacturing and services enterprises has been eliminated and the investments have been revised upwards and additional criteria of turnover has been introduced.
MSME sector comprising of micro, small and medium enterprises is the backbone of the Indian economy. MSME sector is regulated by the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. Whether an entity is a micro, small or medium enterprise depends on the value of its investment in plant and machinery or equipment and annual turnover. Under the new definitions, A composite criterion of investment and turnover shall apply for classification of an enterprise as micro, small or medium. The threshold limit for investment in plant and machinery or equipment and annual turnover is as follows:
Manufacturing Enterprises and Enterprises rendering Services
Revised Classification applicable w.e.f 1st July 2020
| Enterprises | Investment in Plant and Machinery/equipment and Annual Turnover |
| Micro Enterprise |
Investment in Plant and Machinery or Equipment: Annual Turnover: not more than Rs. 5 crore |
| Small Enterprises |
Investment in Plant and Machinery or Equipment: Annual Turnover: not more than Rs. 50 crore |
| Medium Enterprises |
Investment in Plant and Machinery or Equipment: Annual Turnover: not more than Rs. 250 crore |
Who can apply for MSME Registration
In terms of the provisions of MSME Act, “enterprise” means an industrial undertaking or a business concern or any other establishment, by whatever name called, engaged in the manufacture or production of goods, in any manner, pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 (55 of 1951) or engaged in providing or rendering of any service or services. Thus, all types of enterprises whether proprietorship, HUF, AOP, Co-operative societies, partnership firm, company or undertaking whether in manufacturing sector or service sector by whatever name called can apply for MSME registration.
Benefits of MSME registration
At Companies Next, we have a dedicated team of professionals for providing quality services with accuracy and within given timelines. We provide complete support in MSME registration for the entity. Our MSME Registration service includes:
No, registration of an enterprise under MSMED Act, 2006 is voluntary.
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