WHAT ARE MICRO, SMALL AND MEDIUM ENTERPRISES?
Definitions of Micro, Small & Medium Enterprises 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:
Manufacturing Enterprises-he 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 is defined in terms of investment in Plant & Machinery.
Service Enterprises:-The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.
The limit for investment in plant and machinery/equipment for manufacturing/service enterprises, as notified, vide S.O. 1642(E) dtd.29-09-2006 are as under
Does not exceed twenty-five lakh rupees
More than twenty five lakh rupees but does not exceed five crore rupees
More than five crore rupees but does not exceed ten crore rupees
Does not exceed ten lakh rupees
More than ten lakh rupees but does not exceed two crore rupees
More than two crore rupees but does not exceed five crore rupees