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The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under:

Classification of an enterprise is done in terms of investment.

In case of investment made in plant and machinery

  • Investment in a Micro Enterprises is not more than 25lakhs.
  • Investment in a Small Enterprisesis more than 25 lakhs and less than 50 crores.
  • Investment in a Medium Enterprises is more than 5 crores but less than 10 crores.


  • Finance from banks is easy to obtain due to the Government support. Fewer interest rates charged by banks
  • Protection against delayed payment from buyers with compound interest
  • collateral-free loans of up to 50 lakhs for individual MSMEs through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
  • ISO Certification Charges are Reimbursed
  • Concession on electricity bills

List of documents required for SSI / MSME Registration

  • Address proof of business
  • Copies of purchase bill and sale bill
  • Partnership Deed/ MOA and AOA.
  • Bills of machinery purchased.
  • Copy of licenses

Note:-For firms that are listed in Schedule -III of the Industrial Licensing Exemption Notification, no Industrial license is needed. Every other enterprise must obtain it for the PRC (Provisional Registration Certificate) application.

  • All statutory and administrative clearances such as No Objection Certificate  from pollution board.
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