Micro Small and Medium Enterprises

  • Admin
  • 1 Apr 2019
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Micro Small and Medium Enterprises
1 Apr

MSME stands for Micro Small and Medium Enterprises. MSMEs are governed by Micro Small and Medium Enterprises Development Act, 2006. The Ministry of Ministry of Micro Small and Medium Enterprises is the governing authority under MSMED Act, 2006.

Classification of Micro Small and Medium Enterprises:-

According to section 7(1) of the MSMED Act, 2006-

In the case of the enterprises engaged in the manufacturing and production of good pertaining to any industry specified in the first schedule to the industries (Development and Regulation) Act,1951, as-

  1. Micro Enterprise -  where the investment in Plant and Machinery does not exceed Twenty Five Lakhs Rupees;
  2. Small Enterprise -  where the investment in Plant and Machinery is more than Twenty Five Lakhs Rupees but does not exceed Five Crores Rupees; or
  3. Medium Enterprise - where the investment in Plant and Machinery is more than Five Crores Rupees but does not exceed Ten Crores Rupees;

In the case of the enterprises engaged in providing or rendering of services, as-

  1. Micro Enterprises - where the investment in Equipment does not exceed Ten Lakhs Rupees;
  2. Small Enterprises - where the investment in Equipment is more than Ten Lakhs Rupees but does not exceed Two Crores Rupees; or
  3. Medium Enterprises - where the investment in Equipment is more than Two Crores Rupees but does not exceed Five Crores Rupees.
Category Manufacturing Sector (Investment in Plant &Machinery) Service Sector (Investment in Equipment)
Micro Enterprises Upto 25 Lakhs Upto 10 Lakhs
Small Enterprises Upto 5 Crores Upto 2 Crores
Medium Enterprises Upto 10 Crores Upto 5 crores

 Not yet registered as MSME, CLICK HERE to get registered.

 

New Definition of MSME:-

The MSME Development (Amendment) Bill, 2018 was introduced in the Lok Sabha in July 2018. Under the MSME Development (Amendment) Bill, 2018, new definition of the MSME was introduced, which is based on the turnover criteria. Although the new definition is not applicable, as the same has not got the president ascent.

The new definition of the MSME is as under:-

  1. Micro Enterprises – Enterprises having turnover upto Rs. 5 Crores
  2. Small Enterprises – Enterprises having turnover more than Rs. 5 Crore and upto Rs. 75 Crores
  3. Medium Enterprises – Enterprises having turnover more than Rs. 75 Crores and upto Rs. 250 Crores 
Category Annual Turnover
Micro Enterprises Does not exceed Rs. 5 Crores
Small Enterprises Does not exceed Rs. 75 Crores
Medium Enterprises Does not exceed Rs. 250 Crores

  Not yet registered as MSME, CLICK HERE to get registered.

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