In this blog post, Rahul Ranjan, a Third Year student studying at Vinoba Bhave University, Hazaribagh, Jharkhand and pursuing a Diploma in Entrepreneurship Administration and Business Laws from NUJS, Kolkata, lists and describes the various businesses that can be registered under the MSMED Act.
In the era of a fast-changing economy, the MSMEs sector is considered as a backbone of any economy and plays a vital role in providing employment to the larger sections of society at a comparatively lower cost than larger industries along with the industrialization of rural and backward areas, which results in the assurance of a more equitable distribution of national income and wealth.
As per the annual report of the Ministry of MSMEs 2015, the MSME Sector contributes around 40% to the GDP of India and counting with the aim at facilitating the promotion and development of small and medium Enterprises. In any economy, MSMEs have been regarded as the engine of economic growth and for promoting equitable and regional development. The MSMED Act 2006 is nothing else but an advancement and merger of the Ministry of SSI and the Ministry of Agro & Rural Industries. It provides for the first-ever legal framework for the recognition of the concept of enterprises which comprise of both Manufacturing and Services entities. It defines the Medium enterprises for the first time and classifies the three tiers of these enterprises namely, Micro, Small, and Medium Enterprises.
Eligibility Criteria For Business To Get Registered Under MSMED Act, 2000
As per the provisions of the MSMED Act 2006, the eligibility criteria of businesses is determined according to the definition of enterprises which are categorized under the Head of Manufacturing Enterprises and Service Enterprises.
- Manufacturing Enterprises- The enterprises engaged in the manufacturing and production of goods and defined in terms of investment in Plant and Machinery.
- Service Enterprises -The enterprises engaged in providing or rendering of services and defined in terms of investment in equipments.
Nature Of Businesses To Be Registered Under The MSMED ACT, 2006
Given below is a list of several businesses which are eligible for getting registration under the MSMEs Sector. The nature of businesses eligible to get registered under this Act depends on the registration policy of both the Central government and the State government. The major heads of business which ordinarily get registration under the MSMED Act 2006 are as follows:
- Leather Apparels
- Injection Moulding Thermoplastic Products like hair brushes, umbrella frames, plastic toys, etc.
- Natural Fragrance and Flavours
- Placement and Management Consultancy Services
- Training and Educational Institute
- Energy Efficient Pumps
- Beauty Parlour and crèches
- Auto Repair, Services and Garages
- X-Ray Clinics
- Equipment Rental & Leasing
- Photographic lab
- Servicing of Agricultural Farm Equipment. For example, tractor pump repairing, ring boring machine, etc.
- Back Office Operation Relating to Computerised Data
- STD/ISD Booths
- Retail Trade with low Capital
- Multi Channels Dish cable T.V. with Dish Antenna
- Laundry and Dry Cleaning
- Toughened Metallic Ware
- Automotive Electronic Component products like electric stoves up to 3 KW, electric auto tan door, FHP Motor A.C., etc.
- Electronic Surveillance and Security
- Mechanical Engineering Excluding Transport Equipment. For example, steel almirahs, cocks and valves, wire cutters, etc.
- Engineering and Fabrication
- ‘Servicing Activities’ engaged in maintenance, repair, testing and servicing of all type of Electronic/Electric Equipment/Instrument, i.e., Measuring or control of instruments, T.V., Tape Recorders, VCRs, Radios, Transformer, Motors, Watches.
- Micro Nutrients For Plants
- Active Pharmaceutical Ingredients and Ayurvedic Products
- Khadi Products and Hosiery Products
- Handicraft Activities like Spinning, Weaving, Artisans, etc.
- Printing and Paper Products
- Coir Industry
- Wood Products and Furniture
- Poultry Farm
- Bicycle parts
- Stationery Items. For example, ball point pens and fountain pens.
- Computerised Call centre
- Rubber Products
- IT Solution Provider. Services include creation of server bank, application service provider, smart card customization service provider, etc.
- Industrial Testing Labs
- Auto Parts Components. For example, horn button, door channels, wiper blade components, battery cell tester, etc.
- Glass and Ceramics. For example, roofing tiles glass, flooring tiles granite, etc.
Operating Cycle Of Business Under MSME Sector
MSMEs Business Cycle