Micro Small Medium Enterprises (MSME)

Micro Small Medium Enterprises Development (MSMED) Act, 2006, has been put into place to provide for encouraging and ease the development and improvement of the competitiveness of Micro, Small and Medium Enterprises. According to Section 7 of the Act, there are primarily two sectors – Manufacturing Sector and Service Sector, further which the classification of micro, small and medium enterprises is made.

For the enterprises engaged in the manufacture or production of goods subject to any industry specified in the 1st Schedule to the Industries (Development and Regulation) Act, 1951[1] , following is the classification according to the investment made in plant and machinery

• microenterprise – >25 lakh rupees;
• a small enterprise-more than 25 lakhs, but more than 5 crore rupees;
• a medium enterprise–more than 5 crores but less than 10 crore rupees.

For the enterprises engaged in providing or rendering of services, the classification is according to the investment made in the equipment

• a microenterprise ->10 lakh rupees;
• a small enterprise– more than 10 lakhs, but more than 2 crore rupees;
• a medium enterprise – more than 2 crores but less than 5 crore rupees.

For calculating the investment in plant and machinery, the cost of pollution control, research and development, industrial safety devices and such other items as per the notification are excluded.

What are Features of MSME Registration?

• Only an entrepreneur having valid Aadhar Number shall be eligible to apply for MSME Registration Online. At present Aadhar Number is mandatory for issuance of MSME Certificate
• The MSME certificate is a permanent certificate with lifetime validity
• After filing the online MSME application form, the MSME/SSI Registration Certificate shall be issued immediately
• No physical copy of MSME Certificate shall be issued

What Is The Procedure to Obtain an MSME Registration Online?

The procedure is easy and straightforward. Following details are required to be submitted:

1. A valid Aadhaar number
2. Name of the applicant as per the adhaar card
3. Social category to be selected from the given options
4. Gender
5. To be mentioned if physically handicapped
6. Name of the Enterprise/ Business that will be printed on the MSME Certificate
7. Type/ Structure of organization – Sole proprietorship, LLP, HUF etc
8. PAN number
9. Location of the plant
10. Office address may be mentioned if is different from the plant address
11. Mobile number of the applicant
12. Email ID of the applicant
13. Date of commencement of the Business
14. Bank Account number and the IFSC number
15. Main business activity – Manufacturing or Service
16. The sub-category of the business category to be selected, which is associated with a 2-digit NIC code.
17. Additional Details of the business
18. Number of employees
19. Total investment made in the plant & machinery/equipment
20. A scanned copy of Adhaar card has to be attached in jpg format

Read, Also:Form MSME-1: A Guide on Due Dates and Filing Procedure