MSME is basically known as Ministry of Micro, Small & Medium Enterprises. MSME falls under micro, small & medium sized enterprises. MSME enterprises are the strength of any economy and are an engine of economic growth. Therefore, with the help of various schemes and subsidies, the Government of India promotes MSME through MSMED Act. And MSME registration is necessary to avail the benefits under the MSMED Act from the banking sector, central or state Government. MSME registration is simply an optional registration that provides Micro, Small and Medium sized enterprises with various benefits like subsidies and schemes. MSME is classified in two categories that is manufacturing enterprises where the enterprises engaged in the production or manufacture of goods and service enterprises in which the enterprises engaged in the business of providing or rendering of services or in simple words, it is defined in terms of investment in equipment. Now you can get MSME registration very easily.
MSME enterprises of manufacturing sector can be categorized on the basis of amount invested in plant and machinery –
- Micro enterprises– Entities investing less than ₹ 25 lakhs in plant and machinery
- Small enterprises– Entities investing between ₹ 25 lakhs and ₹ 5 crores in plant and machinery
- Medium enterprises– Entities investing between ₹ 5 crores and ₹ 10 crores in plant and machinery
MSME enterprises in the service sector can be categorized on the basis of amount invested in equipment-
- Micro enterprises– Entities investing less than ₹ 10 lakhs
- Small enterprises– Entities investing more than ₹ 10 lakhs but less than ₹ 2 crores
- Medium enterprises– Entities investing ₹ 2 crores but less than ₹ 5 crores.