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Udyog Aadhar (MSME/SSE) 

The Government of India has introduced MSMED Act (Micro, Small, and Medium Enterprises Development) to promote and encourage the small-scale industries, it maintain a list of all the industries registered as MSME or SSI. MSME sector is considered as the backbone of Indian economy that has contributed substantially in the socio-economic development of the nation. It is not only generates employment opportunities but also works hand-in-hand towards the development of the nation’s backward and rural areas. According to the annual report by the Government (2018-19), there are around 6,08,41,245 MSMEs in India.

The classification of MSME has been divided into two categories, one is for Manufacturing Enterprises and another one is for Services enterprises.

  1. Manufacturing Enterprises- The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951) or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use.

  2. Service Enterprises:-The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.

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Rs. 849/-

The distinction between the manufacturing and services enterprises has been removed by making the investment amount and annual turnover similar for enterprises engaged in both the sectors.

MSME – Merged Criteria: Investment and Annual Turnover

Sector / Enterprises Type

Micro Enterprises

Small Enterprises

Medium Enterprises

Manufacturing & Services sector, both

Investment less than Rs. 1 crore

Turnover up to         Rs. 5 crore

Investment less than Rs. 10 crore

Turnover up to Rs. 50 crore

Investment less than Rs. 50 crore

Turnover up to Rs. 250 crore

Benefits of having MSME/SSE Registration

  • Provides credit limit or funding support from banks.

  • It would also allow businesses to apply for government micro business loans and other such related beneficial schemes at lower interest rates.

  • It provides 50% subsidy on Patent / Trademark registration.

  • 1% exemption on the interest rate on overdraft

  • Exemption under Direct Tax Laws

  • Eligible for Industrial Promotion subsidy

  • Reimbursement of ISO Certification charges

  • Exemption to pay interest on Delayed Payments Act (In some criteria)

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