Tuesday, May 19, 2020

MSME Part 1- Activities or Units eligible for registration under MSMED Act, 2006

Who can be registered Under MSMED Act, 2006?
Manufacturing Unit or Service Unit can be registered under MSMED Act, 2006 provided that below conditions are met:
Type of Enterprises
Revised Criteria **
both for Manufacturing Enterprise and Services Enterprises
Earlier Criteria*
for Manufacturing Enterprises
Earlier Criteria
for Service Enterprises
Micro
Investment < Rs. 1 Crore
AND
Turnover < Rs. 5 Crores
Investment < Rs. 25 Lakh
Investment < Rs. 10 Lakh
Small
Investment < Rs. 10 Crore
AND
Turnover < Rs. 50 Crores
Investment < Rs 5 Crores
Investment < Rs 2 Crores
Medium
Investment < Rs. 20 Crore
AND
Turnover < Rs. 100 Crores
Investment < Rs. 10 Crores
Investment < Rs. 5 Crores
*  Earlier criteria was Investment in Plant & Machinery or Equipment
**  Now eligibility criteria is investment and turnover both (As announced by Finance Minister of India on 13th May 2020 in Atamnirbhar Bharat)
Who can not be registered under MSMED Act, 2016
Business units cannot get registered under MSMED Act, 2006 who are having following business activities:
Activities not allowed for registration under MSMED Act
NIC Code
1)       Forestry and logging
02
2)       Fishing and aquaculture
03
3)       Wholesale and retail trade and repair of motor vehicles and motorcycles
45
4)       Wholesale trade except of motor vehicles and motorcycles
46
5)       Retail trade except of motor vehicles and motorcycles
47
6)       Activities of households as employees of domestic personnel
97
7)       Undifferentiated goods and services producing activities of private households for own use
98
8)       Activities of extraterritorial organisations and bodies
99

Further, activity under NIC code -01 Crop, animal production, hunting and related activities are also be not included in category allowed to take registration under MSMED Act, 2006. However, following activities within NIC Code - 01 are allowed for the purpose of registration under the Act.

Activities allowed for registration under MSMED Act
NIC Code
i)                    Production of Eggs
01462
ii)                  Operation of poultry hatcheries
01463
iii)                Bee-Keeping and production of honey and beeswax
01492
iv)                Raising of silk worms, production of milks, production of silk worm cocoons
01493
v)                  Operation of agricultural irrigation equipment
01612
vi)                Support activities for animal productions
01620
vii)              Preparation of crops for primary markets i.e. cleaning, trimming, grading, disinfecting
01631
viii)            Cotton ginning, cleaning and bailing
01632
ix)                 Preparation of tobacco leaves
01633
x)                   Other post-harvest crop activities
01639
xi)                 Seed processing for propagation
01640



DISCLAIMER
The material and information contained in this blog are for general information purpose only.  Though we have made every efforts to make our interpretation correctly, we do not make representation either express or implied about the completeness or correctness of the subject matter.  Under no circumstances the author is not responsible / liable for any loss or damage caused to anyone due to any mistake / error / omissions.

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