Which type of Business can Register under MSME Act 2006

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In the period of a quick evolving economy, the MSMEs sector is considered as a spine of any economy and assumes a fundamental part in giving work to the bigger segments of society at a nearly bring down cost than bigger ventures alongside the industrialization of country and in reverse territories, which brings about the confirmation of a more fair appropriation of national wage and riches.

According to the yearly report of the Ministry of MSMEs 2015, the MSME Sector contributes around 40% to the GDP of India and tallying with the go for encouraging the advancement and improvement of little and medium Enterprises. In any economy, MSMEs have been viewed as the motor of monetary development and for advancing impartial and provincial advancement. The MSMED Act 2006 is nothing else except for a headway and merger of the Ministry of SSI and the Ministry of Agro and Rural Industries. It accommodates the primary ever legitimate system for the acknowledgment of the idea of ventures which contain both Manufacturing and Services elements. It characterizes the Medium ventures out of the blue and arranges the three levels of these endeavors to be specific, Micro, Small, and Medium Enterprises.

Qualification Criteria For Business To Get Registered Under MSMED Act, 2006

According to the arrangements of the MSMED Act 2006, the qualification criteria of organizations is resolved by the meaning of undertakings which are sorted under the Head of Manufacturing Enterprises and Service Enterprises.

Manufacturing Enterprises-The endeavors occupied with the Manufacturing and creation of products and characterized in terms of  investment in Plant and Machinery. Which upto 25 lakh in case of micro Enterprise, 25 lakh  to 5crore in case of small enterprises and 5crore to 10 crore in case of medium  enterprises.

Service Enterprises – The endeavors occupied with giving or rendering of services and characterized in terms of investment in equipment. Which is upto 10 lakh in case of micro enterprises, 10 lakh to 2crores in case of small enterprises and 2 crore to 5crore in case of Medium enterprise.

Which Businesses can Register under MSME Act, 2006

Given beneath is a rundown of a few organizations which are qualified for getting enrollment under the MSMEs Sector. The idea of organizations qualified to get enrolled under this Act relies upon the enlistment arrangement of both the Central government and the State government. Previously its also called the SSI. You can check here to know more about the SSI Registration. The significant heads of business which customarily get enlistment under the MSMED Act 2006 are as per the following:

  • 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
  • Xeroxing
  • Beauty Parlour
  • Auto Repair, Services and Garages
  • X-Ray Clinics
  • Tailoring
  • 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 occupied with support, repair, testing and adjusting of all sort 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.


All types of business entities, whether it is Proprietorship, Partnership, Private Limited Company, Limited Liability Partnership etc are eligible for SSI or MSME or Udyog Aadhar Registration. If you are interested about the govt subsidy and benefits then you can check out here Udyog Aadhar Benefits. Hope you like this guide and helpful for your new business.