SME
What is SME in India
The full form of SME is “Small and Medium Enterprises”. The SME definition in India as per Section 7 of Micro, Small & Medium Enterprises Development Act, 2006 is based on the investment amount as per the sectors these cater to.
What is the SME classification?
Govt of India notifies vide Notification No. S.O. 2119(E) dated 26.06.2020 certain criteria for classifying the enterprises as micro small and medium enterprises (MSME),
With effect from the 1st day of July 2020, namely:--
Classification of enterprises.-An enterprise shall be classified as a micro, small or medium enterprise on the basis of the following criteria, namely:--
(i) a micro-enterprise, where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;
(ii) a small enterprise, where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and
(iii) a medium enterprise, where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
Revised Classification applicable w.e.f 1st July 2020 Composite Criteria: Investment in Plant & Machinery/equipment and Annual Turnover
| Classification | Micro | Small | Medium |
| Manufacturing Enterprises and Enterprises rendering Services | Investment in Plant and Machinery or Equipment: | Investment in Plant and Machinery or Equipment: | Investment in Plant and Machinery or Equipment: |
| Not more than Rs.1 crore and Annual Turnover ; not more than Rs. 5 crore | Not more than Rs.10 crore and Annual Turnover ; not more than Rs. 50 crore | Not more than Rs.50 crore and Annual Turnover ; not more than Rs. 250 crore |
Following are the Goverments schemes for MSME
| SCHEME LIST |
| Schemes |
| Prime Minister Employment Generation Programme(PMEGP) |
| Performance and Credit Rating Scheme |
| Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE) |
| Interest Subsidy Eligibility Certificate (ISEC) |
| Science and Technology Scheme |
| Market Promotion & Development Scheme (MPDA) |
| Revamped Scheme Of Fund for Regeneration Of Traditional Industries (SFURTI) |
| Coir Udyami Yojana (CUY) |
| Coir Vikas Yojana (CVY) |
| Skill Upgradation & Mahila Coir Yojana (MCY) |
| Development Of Production Infrastructure (DPI) |
| Domestic Market Promotion Scheme |
| Export Market Promotion |
| Trade and Industry Related Functional Support Services (TIRFSS) |
| Financial Support to MSMEs in ZED Certification Scheme |
| A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE) |
| Credit Linked Capital Subsidy for Technology Upgradation |
| ISO 9000/ISO 14001 Certification Reimbursement |
| Marketing Support/Assistance to MSMEs (Bar Code) |
| Lean Manufacturing Competitiveness for MSMEs |
| Design Clinic for Design Expertise to MSMEs |
| Technology and Quality Upgradation Support to MSMEs |
| Entrepreneurial and Managerial Development of SMEs through Incubators |
| Enabling Manufacturing Sector to be Competitive through QMS&QTT |
| Building Awareness on Intellectual Property Rights (IPR) |
| International Cooperation |
| Marketing Assistance Scheme |
| Marketing Assistance & Technology Upgradation (MATU) |
| MSME Market Development Assistance (MDA) |
| Assistance to Training Institutions (ATI) |
| Micro & Small Enterprises Cluster Development (MSE-CDP) |
| EDP/MDP schemes |
| NER Schames |
| TCSP Schemes |
MSME Registration:
MSME can register their business/services online udyamregistration.gov.in. under following categories
1. Entrepenuers who are not yet registered under EM-II
2. Already registered under UAM
Required documents;
PAN Card
Aadhaar card
Valid Mobile No. for OTP
For further discussion, we will be pleased to have a personal meeting with you. Write to us contact@philosopherstone.in