Registartion under MSME Act

Rahul Gupta (Project Controller ACA MBA(Fin.))   (8014 Points)

11 February 2011  

Registration of Small Scale Industrial Units (SSI)


SSI Registration is now replaced with filling of Memorandum(s) and undertaking under the MSMED Act, 2006. Salient features of MSMED Act-2006 are as under:



(i)      Govt. of India has enacted a comprehensive legislation covering the entire gamut of the micro, small and medium enterprises.  The legislation has come into force w.e.f. 02-10-2006.


(ii)      The state government is required to take action to ensure that the benefits of this promotional legislation percolate to all the stakeholders.  Under the Act ‘industry’ component has been replaced by ‘enterprise’ with a view to emphasizing the importance of service sector enterprises.


(iii)     Manufacturing enterprises have been defined in terms of  investment in plant and machinery (excluding land & buildings) as under:


           Micro Enterprises -   investment up to Rs. 25 lakh

           Small Enterprises -   investment above Rs. 25 lakh &  up to Rs. 5 crore.

            Medium Enterprises   -   investment above Rs. 5 crore &  up to Rs. 10 crore


(iv)     Service enterprises have been defined in terms of their   investment in equipment and further classified in to :


Micro Enterprises      -   investment up to Rs. 10 lakh

Small Enterprises      -   investment above Rs. 10 lakh &  up to Rs. 2 crore.

Medium Enterprises   -   investment above Rs. 2 crore &  up to Rs. 5 crore


(v)     Under the Act

(a)      SSI registration has been dispensed with and replaced with the filing of a memorandum.

(b)      Filling of memorandum is optional for all Micro and Small Enterprises.

(c)      Filling of memorandum  is optional for service sector medium enterprises

(d)      Filling of memorandum is mandatory for manufacturing sector medium enterprises.


(vi)     Enterprises will file the memorandum before the ‘Nodal Authority of Industries Deptt.’. (A format of memorandum along with the procedure of its filing can be downloaded by clicking here.


(vii)    It is mandatory for the manufacturing (not service) Medium enterprises to file a memorandum and It would be optional for all other categories to file such memorandum as stated above.


(viii)    It has been further informed that the memorandum filed by Enterprises would be acknowledged by the ‘Authority’ and further to issue the receipt is also mandatory.


(ix)     The ‘authority’ with which memorandum is to filed by Micro/Small Enterprises has been notified as Dy. Commissioner of Industries (Registration) by state government/ Industries Department.


(x)      The interest on delayed payments to Small Scale and Ancillary Industrial Undertaking Act, 1993 have been incorporated in to new Act w.e.f. 02 October, 2006. It shall be mandatory for the states/UTs to constitute Micro and Small Enterprises Facilitation Council(s) (MSEFC) in their respective states. Rules for MSEFCs  for Delhi have already been notified.