In the early days of a business, entrepreneurs are looking for a license to get their business recognised by the government. One of the easier registrations to be granted is the MSME or SSI Registration or the Micro, Small & Medium Enterprises Registration or Small Scale Industries Registration. This is not the only reason it is popular among new businesses. It’s because this registration gives you access to numerous benefits.
Micro Enterprises: These are the smallest entities, of course. Micro manufacturing enterprises have investment of less than Rs. 25 lakh in plant and machinery, while micro service enterprises have less than Rs. 10 lakh invested in equipment.
Small Enterprises: Small manufacturing enterprises may have between Rs. 25 lakh and Rs. 5 crore invested in plant and machinery, while small service enterprises may have between Rs. 10 lakh and Rs. 2 crore invested in equipment.
Medium Enterprises: Medium manufacturing enterprises may have between Rs. 5 crore and Rs. 10 crore invested in plant and machinery, while small service enterprises may have between Rs. 2 crore and Rs. 5 crore invested in equipment.
For manufacturing entities, however, land and building cannot be counted toward the total investment. Also, the original cost of the equipment and plant and machinery is taken into account; depreciation cannot be factored in. Any business entity may apply, be it a partnership or a company. Sole proprietors may also apply.