What type of business comes under MSME?
et us first define MSMEs. Micro, Small, and Medium-Sized Enterprises (MSMEs) comprise a diverse array of businesses concerning capital and revenue. MSMEs may work in services, manufacturing, or both.
According to the Government of India, MSME refers only to manufacturing and service businesses, with trading companies excluded. The MSMED Act 2006 divides businesses into Manufacturing Enterprises and Service Enterprises based on their definition and categorization, as well as the registration regulation applicable to the Central and State governments. Manufacturing enterprises manufacture and produce goods, whereas service enterprises provide a variety of services.
To be eligible for the MSME plan, industries must meet the Ministry of Micro, Small, and Medium Enterprises’ qualifying criteria. These eligibility criteria vary depending on the investment in plant and machinery/equipment and turnover for Micro-Enterprise, Small-Enterprise, and Medium-Enterprise.
The investment in machinery/equipment for a Micro-Enterprise should not exceed Rs. 1 crore, and the turnover should be less than Rs. 5 crore. Small enterprises should invest not more than Rs. 10 crores in machinery/equipment, and their turnover should not exceed Rs. 50 crores, whereas medium enterprises should invest not more than Rs. 50 crores and their turnover should not exceed Rs. 250 crores.
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