Whether Private hospital is cosidered under MSME Scheme

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DHANANJAY S KULKARNI (Querist)
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17 October 2019 Whether Private hospital eligible to register under MSME scheme of Government.
If yes what are the conditions
If no whether it can be converted into MSME.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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11 July 2024 Yes, private hospitals are eligible to register under the MSME (Micro, Small, and Medium Enterprises) scheme of the Government of India, provided they meet certain criteria. Here’s a detailed explanation:

### Eligibility of Private Hospitals under MSME Scheme:

1. **Definition of MSME**: As per the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, and subsequent amendments:
- **Micro Enterprise**: Investment in plant and machinery or equipment does not exceed Rs. 1 crore and turnover does not exceed Rs. 5 crore.
- **Small Enterprise**: Investment in plant and machinery or equipment is more than Rs. 1 crore but does not exceed Rs. 10 crore, and turnover is more than Rs. 5 crore but does not exceed Rs. 50 crore.
- **Medium Enterprise**: Investment in plant and machinery or equipment is more than Rs. 10 crore but does not exceed Rs. 50 crore, and turnover is more than Rs. 50 crore but does not exceed Rs. 250 crore.

2. **Conditions for Registration**:
- The hospital should fall within the investment and turnover limits specified for micro, small, or medium enterprises.
- The classification (micro, small, or medium) depends on the investment in plant and machinery/equipment and turnover of the hospital.

3. **Registration Process**:
- Private hospitals can register themselves as an MSME through the Udyam Registration portal (https://udyamregistration.gov.in/).
- The registration involves providing basic details about the hospital, its classification (micro, small, medium), investment in plant and machinery, turnover, etc.

### Conversion into MSME:

If a private hospital is currently not registered under the MSME scheme but meets the eligibility criteria (investment and turnover limits), it can certainly apply for registration. Here’s how it can proceed:

- **Assessment**: Evaluate whether the hospital meets the investment and turnover criteria for micro, small, or medium enterprises.
- **Udyam Registration**: Visit the Udyam Registration portal and complete the registration process by providing necessary details.
- **Benefits**: Once registered, the hospital can avail benefits such as priority sector lending, subsidies, preferences in government procurements, and various schemes aimed at promoting MSMEs.

### Conclusion:

Private hospitals are indeed eligible to register under the MSME scheme of the Government of India, provided they meet the investment and turnover criteria specified for micro, small, or medium enterprises. Registration under the MSME scheme can provide hospitals with various benefits aimed at promoting and supporting small and medium enterprises in the healthcare sector.

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