Features of MSMED Act 2006
MSMED (Micro, Small and Medium Enterprises Development) Act is an act for facilitating the promotion, development, and also to enhance the competitiveness of Micro, Small and Medium Enterprises.
The MSMED Act was published in the Gazette of India on June 16, 2006. MSMED Act has looked after the betterment of MSMEs, there are several features under MSME Act which are useful for MSMEs in India. Here in this article, let us understand what are the features of the MSMED Act 2006.
Features of MSMED Act 2006
- Enterprises engaged in the manufacture/production of goods pertaining to any industry.
- Enterprises engaged in providing/rendering of services. Manufacturing Enterprises have been defined in terms of investment in plant and machinery (excluding land & buildings) and further classified into:
- (a) Micro Enterprises – investment up to Rs.25 lakh
- (b) Small Enterprises – investment above Rs.25 lakh & up to Rs. 5 crores
- (c) Medium Enterprises – investment above Rs.5 crore & up to Rs. 10 crores.
- The Service enterprises have been defined in terms of their investment in equipment (excluding land & buildings) and further classified into:
- (a) Micro Enterprises – investment up to Rs. 10 lakh
- (b) Small Enterprises – investment above Rs. 10 lakh & up to Rs. 2 crores.
- (c) Medium Enterprises – investment above Rs.2 crore & up to Rs. 5 crores.
It defines ‘Medium Enterprises’ to facilitate the achievement of economies of scale.
- The Act aims at facilitating the promotion and development of small and medium enterprises in a competitive way.
- The Government has also announced a Policy Package for Stepping up Credit to Small and Medium Enterprises assuring, inter alia, a 20 percent year-on-year growth in credit flow.
- The National Manufacturing Competitiveness Programme (NMCP) announced in the Budget Speech of 2006-07 will include components relating to marketing support to MSME. Implementation of the NMCP will be taken up soon.
Here in this article, we have understood the features of MSME, it will be surely useful for you to grow your business. If you’re wondering to get MSME registration online then you should visit the MSME registration portal and complete the MSME registration process in bliss.
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