India is a developing country, and hence MSME or SSI Enterprises are the backbone of Indian economy and are also leading to economic growth at a pace which is increasing day by day.
MSME stands for micro, small and medium-sized enterprises and they operate both in manufacturing and service sector of the economy, and hence both the enterprises working in the service sector or the manufacturing sector can register themselves under MSMED, Act 2006.
Though it is not necessary to register one's company under MSMED act, the support and incentives provided by the Govt. of India are one of the benefits which a smaller enterprise would want to attain.
The government of India has defined Micro, Small and Medium Enterprises as enterprises engaged in the business of manufacturing or production or in the business of providing or rendering services. The criteria for registering one's enterprise is different for service providing and manufacturing enterprises.
For companies or enterprises which are engaged in production or manufacturing goods:
Criterion of registering an enterprise with the govt. is bifurcated in two parts. Only those companies can be classified as a micro, small or medium enterprise which completes the criteria prescribed by the govt. Of India in MSMED Act, 2006.
Criteria for MSME entities which deal in the service sector of the economy are:
Documents to be provided by the enterprises are:
MSME registration for small-scale industry involves an easy and straightforward process.
More on: Key benefits of MSME registration in India
Only those companies can be classified as a micro, small or medium enterprise which completes the criteria prescribed by the govt. Of India in MSMED Act, 2006.