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MSME and SSI Are the Same?

Read this blog to know everything about MSME and SSI. Also, learn more about the SSI full form and MSME full form, meaning and differences between the two.


Before moving on to the differences between MSME and SSI, let us learn a little bit more about the SSI full form and the MSME full form and their meaning.

MSME Full Form and Meaning

MSME means Micro, Small, and Medium Enterprises. The Government of India passed an act named Micro, Small, and Medium Enterprises Development (MSMED) Act of 2006 has Start MSME or Micro, Small, and Medium Enterprises. These enterprises are mainly involved in goods and commodities manufacturing, production, preservation, or processing.

SSI Full Form and Meaning

Generally, the small-scale industries (SSIs) include industries that manufacture, produce, and render services with the help of small machines and less workforce. The maximum investment limit of Small-Scale Industries cannot exceed. 1 crore in plants & industries, and machinery. Both of these enterprises work under the guiding principle of the Government of India. These types of enterprises need to fall under the guidelines set by the Government of India. 

In India, SSIs are the lifeline for the economy. These industries are generally labour-intensive, also they play an important role in creating employment opportunities. SSIs are a crucial sector of the economy from a social and financial point of view. It helps in the per capita income and resource utilization in the economy of India.

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Are SSI and MSME the Same?

Yes. Earlier industries that make goods and do a production of goods and provided services on a small scale or micro-scale get the Small-Scale Industries (SSI) registration. The small-scale and micro-scale industries came under the MSME Act. hence, both MSME and SSI are the same. Simply The government expands the scope of the SSI and termed it MSME.  The government passed the MSME (Micro, Small, and Medium Enterprises) Act in the year of 2006.

What Are the Documents Required for MSME Registration?

Only 2 documents are basically required as the MSMEs registration known as Aadhaar Card and PAN Card are the only necessary documents that are required for MSME registration. MSME registration is entirely online, and no proof of documents is required. PAN and GST linked details on investment and turnover of enterprises will be taken automatically by the Udyam Registration Portal from the Government databases. The Udyam Registration Portal is fully integrated with Income Tax and GSTIN systems.

GST is not compulsory for every enterprise because every enterprise does not require Gst registration under the GST law. But if, the enterprises that need compulsory GST registration under the GST regime must have GST registration for their enterprise Udyam Registration.

Those enterprises who have UAM registration or any other registration issued by any authority for their enterprise under the Ministry of MSME will have to re-register themselves in the current Udyam Registration Portal by clicking on the “For New Entrepreneurs who are not Registered yet MSME or those with EM-II.” in the official website of the government.

The enterprises that are having a UAM registration need to migrate to Udyam Registration before 30/06/2022. For instance, suppose that the entrepreneurs having UAM registration do not migrate to Udyam Registration before 30/06/2022. In that case, the UAM registration of their enterprise will become invalid, and they will not be able to avail of the benefits provided to the MSMEs by the government of india. 

What Documents Are Needed to Apply for SSI Registration?

The registration of SSI/MSME for small and micro industries is issued by the MSMEs Ministry. A person can apply on the Udyam Registration portal online to obtain SSI/MSME registration. Only the basic need is the PAN card of the proprietor and the Aadhaar card for registration of SSI.

Benefits Avail by MSME/SSI Registration

  • As soon as a Company gets registered under MSME or SSI, they get benefits to use the various available government schemes and benefits.
  • It is possible to get a 50 % subsidy on the Trademark or patent after the registration.
  • MSME or SSI registration will help to avail of the Industrial Promotion Subsidy.
  • The companies registered under MSMEs give an application to the Electricity Department and can get the concession on the electricity bill from the electricity department.
  • Individuals are liable to claim the reimbursement of ISO certification expenses.
  • MSME or SSI registered companies can easily claim one exemption on Overdraft facilities.
  • The individuals registered under The MSMEs get benefits on interest rates.
  • Individuals registered do need not to file the returns.
  • It helps in Easily getting the various permits and licenses for business.
  • Registration also helps in Easily getting government tenders due to lack of formalities as compared to unregistered individuals.

The Objectives of MSME and SSI

  • MSME or SSI registration helps to count and maintain the role of the small businesses to which the package of incentives and support are targeted.
  • It Provides a certificate for declaring that the registration under MSME and SSI will empower the enterprises to gain profit from the legal advantages that are offered by the government and also essentially, they will have the long-term protection.
  • It helps in Fulfilling the use of the statistics collection.
  • MSME and SSI registration can be used as identification for businesses to open a bank account with the name of the business or the enterprise and also for registration of GST.

Limit of Investment in MSME

The MSMEs by the Micro, Small, and Medium Enterprises Development (Amendment) Bill, 2018, have classified the manufacturing or service-providing enterprises and it is based on their yearly turnover. After that, on the 13th of May 2020, the Government of India announced some major relief to the MSMEs by full revision of the definition of the MSME.

The MSME and SSI are those industries that make a one-time investment in machinery, plants, and industries and it must not need to exceed the limit of Rs 1 Crore.


The MSME and SSI are both the industries that are registered under the Government of India. Earlier it was only SSI but then the Government decided to include micro and medium enterprises in it and therefore it is named MSME. The Indian MSME and SSI enterprises sector give support to the Indian economy by protecting it acts as a defence system in the case of a recession in the country. so, we can say that India is facing a powerful and strong global economy that is powered by the MSME. Through this people gets an opportunity to grow and contribute to the social progress of the country.

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