The government of India has given a new turnover based classification of MSMEs in February 2018. As per this new classification, the MSMEs are categorized in terms of business turnover. As per the new classification, the same turnover-based criteria have been applied for all types of MSMEs including those operating in the services sector Here in this article let us understand the Classification of MSMEs.
Classification of MSME’s
In the month of February 2018, the government of India has given a new classification of MSMEs as per the annual turnover. As per the new amendment the MSME classification is done in two sections, one is Manufacturing enterprises and another one is the Service sectors.
The enterprises which manufacture goods to any industry as per the Industries Development and Regulation Act, 1951 or the one which employes plant and machinery. Basically, the Manufacturing Enterprise is defined in terms of investment in Plant & Machinery.
The business which does not exceed twenty-five lakh rupees comes under Micro-enterprises
The business which more than twenty-five lakh rupees but does not exceed five crore rupees comes under Small business
The business which more than five crore rupees but does not exceed ten crore rupees comes under medium enterprise.
The enterprises which are engaged in providing services to other companies in terms of investment in equipment are defined as Service Enterprises.
The business which does not exceed ten lakh rupees comes under Micro enterprises.
The business which more than ten lakh rupees but does not exceed two crore rupees
The business which more than two crore rupees but does not exceed five crore rupees comes under Medium Enterprises in Services section.
Here in this article, we have understood the classification of MSMEs, it will be surely useful for you to grow your business. If you’re wondering to get MSME registration online then you should visit the MSME registration portal and complete the MSME registration process in bliss.
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