Definition of MSME

Whether you are in manufacturing business or providing services, and no matter how big or small your company is, SBH knows how to address MSMEs and their issues.
Definition of MSME

As per the Micro, Small and Medium Enterprises Development [MSMED] Act 2006 the definitions are as under:

Manufacturing Enterprises:

Enterprises engaged in the manufacture or production, processing or preservation of goods. It is further classified as under based on the original investment in plant & machinery [original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide its notification No.S.O.1722(E) dated October 5, 2006].

  1. A Micro Enterprise [Manufacturing] is an enterprise where investment in plant & machinery does not exceed `25.00 lacs
  2. A Small Enterprise [Manufacturing] is an enterprise where the investment in plant and machinery is more than `25.00 lacs but does not exceed `5.00 crores
  3. A Medium Enterprise [Manufacturing] is an enterprise where the investment in plant and machinery is more than `5.00 crores but does not exceed `10.00 crores

Service Enterprises:

Enterprises engaged in providing or rendering of services. It is further classified as under based on the investment in equipment [original cost excluding land and building and furniture, fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act, 2006].

  1. A Micro Enterprise [Services] is an enterprise where the investment in equipment does not exceed `10.00 lacs
  2. A Small Enterprise [Services] is an enterprise where the investment in equipment is more than `10.00 lacs but does not exceed `2.00 crores
  3. A Medium Enterprise [Services] is an enterprise where the investment in equipment is more than `2.00 crores but does not exceed `5.00 crores
  • SocialTwist Tell-a-Friend