Micro, Small & Medium Enterprises explained in easy language


In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:


  1. Manufacturing Enterprises-The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951) or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use. The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery.
  2. Service Enterprises:- The enterprises engaged in providing or rendering of services and aredefined in terms of investment in equipment.


See below table for easy understanding sector –wise:


If you are a Manufacturer
    Enterprises  Investment in plant & machinery
    Micro Enterprises  Does not exceed INR 25 Lakh
    Small Enterprises  More than INR 25 Lakh but does not exceed INR 5 Crore
    Medium Enterprises  More than INR 5 Crore but does not exceed INR 10 Crore
If you are a service provider
    Enterprises  Investment in equipments
    Micro Enterprises  Does not exceed INR 10 Lakh
    Small Enterprises  More than  INR 10 Lakh but does not exceed INR 2 Crore
    Medium Enterprises  More than INR 2 Crore but does not exceed INR 5 Crore


Start availing benefits now. Get in touch with our SSI/MSME experts here.


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