Overview of MSME Registration

MSMEs or Micro, Small, and Medium Enterprises contribute primarily to the socio-economic development of the country. MSMEs are governed by the Ministry of Micro, Small & Medium Enterprises in India and are also required to be registered under the MSMED or Micro, Small and Medium Enterprises Development Act to avail benefits. Registration of MSME is very important, as it allows these enterprises to avail benefits from the various schemes initiated by the government.

The MSME sector enterprises contributes to 45% of the total industrial employment of India, 50% of the Total Exports of India and 95% of all the industrial units of the country, and more than 6000 different types of products are manufactured in these industries units as per the data provided on the official website of MSMEs, i.e., msme.gov.in. When these industrial units grow, the economy of the country flourishes and grows. These industries are also known as small-scale industries or SSI’s.

What is MSME?

MSME stands for Micro, Small, and Medium Enterprises. According to the MSMED or Micro, Small, and Medium Enterprises Development Act of 2006, enterprises are classified into two types which are as follows:

Manufacturing Enterprises are the enterprises that are engaged in the production or manufacturing of goods in the industry.

Service Enterprises are the enterprises that are engaged in rendering or providing services.

How to register as MSME?

MSMEs can be registered by simply visiting https://msme.gov.in/online-application website of the government and filling the application form for MSME Registration. It’s an online portal provided by the government that helps in the MSME Registration process. The applicants can get the MSME Registration certificate with validity of lifetime in 2-5 working days. The certificate of MSME Registration is for both manufacturing and service sector enterprises. There is no limit prescribed with respect to the name used by any individual to register for new or already existing businesses.

What are the eligibility criteria for MSME Registration?

The difference between the manufacturing and services enterprises are removed by the recent Atma-nirbhar Bharat Abhiyaan Economic Package announced by the finance minister of India Nirmala Sitharaman. The annual turnover and investment amount are made similar for enterprises involved in both the manufacturing and service sectors. The existing and revised definitions of MSMEs are as follows:

Revised Definition and Limits of MSME: Criteria 2020