MSME Registration stands for Micro Small and Medium Enterprises. The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, to promote the small businesses. MSMEs in the manufacturing and service enterprises can obtain the registration under the Act.
Different Types of MSME
There are 3 types of MSME or SSIs which can be classified as under:
1. Micro Enterprises: Micro-enterprises are the smallest entities, of course. The investment under Micro manufacturing enterprises should be less than Rs. 25 lakhs in plant and machinery, whereas, the micro service enterprises should not exceed Rs. 10 lakhs investment.
2. Small Enterprises: In small manufacturing enterprises, the investment should be in between Rs. 25 lakh and Rs. 5 crores in plant and machinery, while in small service enterprises this investment limits between Rs. 10 lakh and Rs. 2 crores.
3. Medium Enterprises: And if we’ll talk about the Medium manufacturing enterprises, then the investment should be in between Rs. 5 crore and Rs. 10 crores in plant and machinery, and for small service enterprises it should be in between Rs. 2 crore and Rs. 5 crores.