Registration under the 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:
Type of Enterprise
(Investment in Plant and Machinery)
(Investment in Equipment)
It does not exceed Rs. 25 Lakh
It does not exceed Rs. 10 Lakh
Exceeds Rs. 25 Lakh but does not exceed Rs. 5 Crore
Exceeds Rs. 10 Lakh but does not exceed Rs. 2 Crore
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 the 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.
MSME Registration Benefits :
Get Governemtn Subsidies.
Get CGTMSE Loans.Start
Exhibition expense reimbursement.
Export Promotion Council Registration.
Which are the classes of enterprises that may qualify for Registration?
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 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 MSMED Registration/Entrepreneurs Memorandum (EM) Number allotted by a competent authority so that there remains identification of being an MSE supplier
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:
(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: