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MSME Act 2006 registration

You may be aware that act for “Micro, Small and Medium Enterprises Development Act 2006” (‘MSMED’) has come into force from 2 October 2006, which has repealed the provisions of the old act regarding SSI undertakings.

As per the MSMED Act, suppliers of goods and services are to be classified into Micro, Small and Medium enterprises.

Please note that the MSMED Act applies also to service providers and it applies irrespective of whether the supplier is a company, partnership firm, association of persons or HUF. For your ready reference the definition of Micro, Small and Medium enterprises is given below:

Classification of enterprises engaged in:

a)       manufacture or production of goods pertaining to any industry specified in the First Schedule to the IDRA as

Nature of enterprise
Investment in plant & machinery (#)
Micro
Less than INR 25 Lac
Small
More than INR 25 Lac less than INR 5 Crores
Medium
More than INR 5 Crore but less than INR 10 Crores

b)      providing or rendering services
Nature of enterprise
Investment in equipment
Micro
Less than INR 10 Lac
Small
More than INR 10 Lac less than INR 2 Crores
Medium
More than INR 2 Crore but less than INR 5 Crores

(#) In calculating the investment in plant & machinery, the cost of pollution control, research and development, industrial safety devices will be excluded.

In order to classify you as a Micro, Small or Medium enterprise (MSME Enterprise) under the “Micro, Small and Medium Enterprises Development Act 2006” kindly provide your response below to us and support your response by providing us a copy of the Entrepreneurs Memorandum filed with the local District Industries Centre.

We need this confirmation for our statutory audit for FY 2017-2018. If the details are not furnished till May 31, 2018, we will presume that you are not to be treated as a non MSME Enterprise.

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