MSME Business List – Complete list of Businesses Under MSME

MSME employment in India accounts for more than 45 percent of total domestic industrial employment, making it the economic backbone of the nation. MSME is an acronym that stands for Micro, Small, and Medium Enterprises. Well have a closer look towards 45 – Day MSME Payment Rule.

Companies in a nation include service corporations, manufacturing firms, and commercial organizations. But the government hasn’t thought about making all businesses MSME.

So, don’t you want to know more about small and medium-sized businesses? If this is the case, you should feel lucky because we have all the information and the latest updates in one place.

Also Read: How e-Commerce Contributes To MSME Growth

Categories of MSMEs

According to government guidelines, all business activities, encompassing both services and manufacturing, are included in the MSME sector, provided they meet the specified investment and turnover criteria. However, exceptions may apply. Generally, MSME businesses can be classified into two main categories:

1. Manufacturing Business Activities: These involve businesses in the manufacturing space, where finished goods are produced from raw materials. Manufacturing MSMEs play a significant role, contributing to 45% of the total manufacturing output and 40% of total exports. The ‘Made in India’ campaign has further fueled the growth of such enterprises.
2. Service Sector Business Activities: Data from the Udyam portal indicates that MSMEs in the service sector constitute a larger proportion compared to those in the manufacturing sector. While the benefits of Udyam MSME registration are applicable to both categories, Indian entrepreneurs have registered 8.65 lakh enterprises under the service sector, surpassing the 5.37 lakh enterprises registered under the manufacturing category.

MSME Business List

Retail and wholesale firms are now part of the MSME sector.

Thanks to the new rules, both retail and wholesale businesses can now sign up on the Udyam Registration Portal. Use Priority Sectors financing in line with RBI rules for MSME loans and restrictions on lending.

This is an up-to-date list of the MSME companies that must follow the MSME Act. You must now have a NIC code in order to sign up for MSME. Just what is a NIC code? Let us investigate.

Also Read: Guide To MSME Project Profiles In India

What is a NIC Code?

The National Industrial Classification Code (NIC) is a code that is used to register Udyog Aadhaar, Limited Liability Partnerships (LLPs), and businesses.

When you fill out a form for the Udhyog to register your company as an MSME, you will need the code. This is needed, along with other important information like the number on your Aadhaar card, your phone number, your email address, and the details of your bank account.

Also, the NIC number in MSME is a code with two to three numbers. The two- to three-digit code shows the set of things a company does. A four-digit code tells you what kind of business activity it is, while a five-digit code tells you what kind of business activity it is.
On July 17, 2020, the Indian government gave an order. A recent Government decision says that this is the full list of MSME firms.

Some acts (NIC codes) for Udyog Aadhar Memorandum registration are not covered by the MSMED ACT, 2006. A new order from July 17, 2020, just changed the list, and it’s important to note that the following businesses and activities would not be considered MSME.

They are all listed below —

• Forestry and logging
• Aquaculture and fishing
• Domestic employees are employed as a result of household operations.
• Acts of organisations and bodies outside of their own territory
• Undifferentiated production of products and services for personal consumption by individual homes.

The Ministry of Micro, Small, and Medium Enterprises says that other things like craft hunting and animal production are also illegal, with one exception.

• The process of egg production.
• There are poultry hatcheries in operation.
• Beekeeping, honey production, and beeswax production are all examples of beekeeping.
• Cocoon creation and silkworm rearing
• Agriculture irrigation equipment operation
• Animal breeding businesses should be supported.
• Crop preparation for key markets.
• Washing, ginning, and cleaning cotton
• Tobacco leaf preparation
• Other agricultural tasks after harvest
• Seed preparation for propagation

Also Read: Everything MSMEs Need To Know About GST

Why Do Certain Companies Do Not Comes Under MSME Business List?

In its proclamation from June 2017, the government was unequivocal in stating that businesses that do not engage in manufacturing or provide services would not be considered MSME. On the other side, trading businesses work in the role of a go-between between customers and the manufacturers of the goods they purchase.

Because of this, it is not something that is covered by the plan. Traders who produce and sell things that are unique in some manner might, nevertheless, become recognized as businesses in their own right. MSME allows for registration by any business that not only sells a product, but also offers supplementary services related to that commodity.

MSME employment in India accounts for more than 45 percent of total domestic industrial employment, making it the economic backbone of the nation. MSME is an acronym that stands for Micro, Small, and Medium Enterprises. Companies in a nation include service corporations, manufacturing firms, and commercial organisations. But the government hasn’t thought about making all businesses MSME.

So, don’t you want to know more about small and medium-sized businesses? If this is the case, you should feel lucky because we have all the information and the latest updates in one place.

Also Read: Highlights of The MSME Budget 2022-23

Shri Nitin Gadkari, who is the Minister of MSME, Road Transport, and Highways, changed the rules for MSMEs in order to help the MSME sector. Retail and wholesale firms are now part of the MSME sector.

Thanks to the new rules, both retail and wholesale businesses can now sign up on the Udyam Registration Portal. Use Priority Sectors financing in line with RBI rules for MSME loans and restrictions on lending.

This is an up-to-date list of the MSME companies that must follow the MSME Act. You must now have a NIC code in order to sign up for MSME. Just what is a NIC code? Let us investigate.

Also Read: Highlights of The MSME Budget 2022-23

How are MSMEs Classified?

In India, MSME classification hinges primarily on the investment made in plant and machinery for manufacturing units or equipment for service sectors. This categorization serves to govern policies and allocate suitable benefits to each segment.
Enterprise Type Upper Limit for Investment in Plant and Equipment/Machinery Upper Limit for Annual Turnover
Micro Rs.1 crore Rs.5 crore
Small Rs.10 crore Rs.50 crore
Medium Rs.50 crore Rs.250 crore

FAQs

What is an MSME?

MSME stands for micro small and medium enterprises. MSME enterprises are engaged in the manufacturing, processing, and production of goods and services and are categorized into two classes: manufacturing and service enterprises. Manufacturing enterprises are engaged in the production of goods, whereas service enterprises are engaged in providing services.

Where can I find the official list of MSME businesses?

The official list of MSME businesses is typically provided by the government’s Ministry of Micro, Small, and Medium Enterprises. This list is regularly updated and can be accessed on their official website.

What are the benefits of being classified as an MSME?

MSMEs get various benefits, including priority sector lending, collateral-free loans, subsidies, and exemptions under certain schemes, promoting ease of doing business.

Also Read:- MSME Scheme – Best Government Business Loan Schemes for MSMEs

What are some profitable MSME industries list?

Here is the list of MSME industries:-

• Training institutes
• Food processing
• Leather goods
• Auto components
• Automobiles
• Beauty parlor