The Micro, Small and Medium Enterprises Development Act, 2006

In force 32 sections Micro, Small and Medium Enterprises

An Act to provide for facilitating the promotion and development and enhancing the competitiveness of micro, small and medium enterprises and for matters connected therewith or incidental thereto.

Act 27 of 2006 Enacted 16 Jun 2006 In force 02 Oct 2006

Administered by. Ministry of Micro, Small and Medium Enterprises · Other Acts of 2006

Preamble

THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006
ACT NO. 27 OF 2006
[16th June, 2006.] An Act to provide for facilitating the promotion and development and enhancing the competitiveness of micro, small and medium enterprises and for matters connected therewith or incidental thereto.
WHEREAS a declaration as to expediency of control of certain industries by the Union was made under section 2 of the Industries (Development and Regulation) Act, 1951;
AND WHEREAS it is expedient to provide for facilitating the promotion and development and enhancing the competitiveness of micro, small and medium enterprises and for matters connected therewith or incidental thereto;
BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:--

What this Act covers

Summary of the Micro, Small Medium Enterprises Development Act, 2006

Key Provisions

1. Definitions (Section 2)

• Defines terms like Micro, Small, and Medium Enterprises based on investment in plant and machinery/equipment, buyer, Supplier, Advisory Committee, Board, etc.

2. Classification of Enterprises (Section 7)

• Micro Enterprise: Manufacturing: ≤ ₹25 Lakh in plant and machinery

• Services: ≤ ₹10 Lakh in equipment

• Small Enterprise: Manufacturing: > ₹25 Lakh to ≤ ₹5 Crore in plant and machinery

• Services: > ₹10 Lakh to ≤ ₹2 Crore in equipment

• Medium Enterprise: Manufacturing: > ₹5 Crore to ≤ ₹10 Crore in plant and machinery

• Services: > ₹2 Crore to ≤ ₹5 Crore in equipment

3. National Board for Micro, Small and Medium Enterprises (Sections 3, 4, 5, 6)

• Composition: Includes Ministers, MPs, Secretaries, Representatives from Banks, Associations, and Experts.

• Functions: Examine factors affecting enterprises, review policies, make recommendations, and advise on Fund usage.

• Powers and Removal of Members: Defined with provisions for removal under certain conditions.

4. Memorandum for Enterprises (Section 8)

• Filing: Optional for Micro and Small, specific conditions for Medium enterprises.

• Authority: Specified by State/Central Government.

• Provision for Existing Enterprises: To file under new Act within 180 days of commencement.

5. Promotion, Development, and Competitiveness (Sections 9, 10, 11)

• Credit Facilities (Section 10): Progressive policies by Reserve Bank.

• Procurement Preference Policy (Section 11): For Micro and Small Enterprises.

6. Funds and Grants (Sections 12, 13, 14)

• Establishment of Funds

• Grants by Central Government: Subject to Parliamentary appropriation.

• Administration and Utilisation: Exclusively for specified measures, coordinated by the Central Government.

7. Dispute Resolution and Other Provisions

• Recovery of Amounts Due

• Micro and Small Enterprises Facilitation Council

• Scheme for Closure of Business

Sections

Type to filter. 32 sections.

Rules made under this Act

40 sets of Rules. India Code publishes Rules as a record and a document rather than as text, so these are indexed here and not reproduced. All Rules.

S.O. 1296(E).—In exercise of powers conferred by section 9 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), the Central Government, for the purposes of facilitating the promotion and development of micro, small and medium enterprises, specifies that the certificate issued on the Udyam Assist Platform to Informal Micro Enterprises shall be treated at par with Udyam Registration Certificate for the purpose of availing Priority Sector Lending benefits2023
S.O. 2239(E2023
G.S.R. 29(E) Micro, Small and Medium Enterprises (Amendment) Rules, 20222022
Notification no 4926 E dated 18 Oct 2022 related to Non tax benefits2022
Rule GSR no 3892022
S.O. 2134(E).—In exercise of the powers conferred by sub-sections (1) and (9) of section 7 read with sub-sections (2) and (3) of section 8 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006),2022
S.O. 278(E)—In exercise of the powers conferred by sub-sections (1) and (9) of section 7 read with subsections (2) and (3) of section 8 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006)2022
S.O. 5745(E).—In exercise of powers conferred by section 11 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), the Central Government hereby makes the following order further to amend the Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012,2022
S.O. 1055(E) —In exercise of the powers conferred by sub-sections (1) and (9) of section 7 read with sub-sections (2) and (3) of section 8 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), the Central Government hereby makes the following amendments in the notification of Government of India, Ministry of Micro, Small and Medium Enterprises number S.O. 2119 (E), dated the 26th June, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (ii)2021
S.O. 2347(E) Development Act, 2006 (27 of 2006), the amendments in the notification of Government of India, Ministry, of Micro, Small and Medium Enterprises number S.O. 2119 (E)2021
S.O. 3237(E).—In exercise of the powers conferred by section 11 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), the Central Government hereby makes the following order further to amend the Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012,2021
S.O. 498(E) —In exercise of the powers conferred by sub-section (3) of section 3 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), read with rule 3 of the National Board for Micro, Small and Medium Enterprises Rules, 2006, the Central Government hereby appoints the following persons as members of the National Board for Micro, Small and Medium Enterprises and for that purpose makes the following amendments in the notification of the Government of India in the Ministry of Micro, Small and Medium Enterprises number S.O.1274(E) dated the 24th April, 20172021
1702(E) In exercise of the powers conferred by sub section 1 read with sub section 9 of section 7 of the Micro Small and Medium Enterprises Development Act2020
2119(E) Central Government after obtaining the recommendations of the Advisory Committee in this behalf hereby notifies certain criteria for classifying the enterprises as micro small and medium enterprises2020
2788(E) In exercise of the powers conferred by sub section 2 of section 7 of the Micro, Small and Medium2019
In exercise of powers conferred by Section 9 of the Micro Small and Medium Enterprises Development Act 02.11.2018 (5622)2018
In exercise of powers conferred by section 11 of the Micro, Small and Medium Enterprises Development Act2018
In exercise of powers conferred by section 11 of the Micro, Small and Medium Enterprises Development Act,2018
In exercise of powers conferred by section 9 of the Micro Small and Medium Enterprises Development Act 02.11.2018 (5621)2018
In exercise of the powers conferred by sub section 3 of section 3 of the Micro Small and Medium Enterprises Development Act2018
In exercise of the powers conferred by clause a of sub section 3 of section 3 of the Micro Small and Medium Enterprises Development Act2017
In exercise of the powers conferred by subsection 2 of the section 8 of the Micro, Small and Medium Enterprises Development2017
Notification for constitution of Advisory Committee/ In exercise of the powers conferred by sub section 2 of section 7 of the Micro Small and Medium Enterprises Development Act ,20062017
Notification for filing of Udyog Aadhaar Memorandum / In exercise of the powers conferred by sub section 2 of the section 8 of the Micro Small and Medium Enterprises Development Act, 20062017
Notification of National Board, National Board for Micro Small and Medium Enterprises Rules 2006 the Central Government hereby appoints the following persons2017
Appointment of Shri Haribhai Parathibhai Chaudhary, Minister of State, Ministry of Micro, Small and Medium Enterprises as Vice Chairperson –ex officio” National Board2016
MSME Fund Rules.20162016
Notification of National Board (Amendment) 20162016
Notification of the Establishment of MSME Fund, an exercise of the powers conferred by section 12 of the Micro Small and Medium Enterprises Development Act2016
The Micro, Small and Medium Enterprises Development (Furnishing of Information) Rules, 20162016
Enactment of filing the Udyog Aadhaar Memorandum2015
In exercise of the powers conferred by sub-section (1) of section 467 of the Companies Act, 2013 (18 of 2013), the Central Govt., hereby makes the following further alterations in Schedule III (hereinafter referred to as said Schedule) to the said Act, namely.2015
Notification of Establishment of the National Board for Micro, Small and Medium Enterprises, 20152015
The Central Govt, for the purpose of facilitating the promotion and development of Micro, Small and Medium Enterprises, hereby notifies the instructions for the Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises, which shall come into force on the date of its publication in the official Gazette, namely the Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises.2015
Notification of the National Board for Micro, Small and Medium Enterprises (Amendment), 20142014
Notification for non-tax benefit under the MSMED Act, 2006. The Central Govt. hereby makes the following provisions pertaining to extension of the non-tax benefits to Micro, Small and Medium Enterprises, with effect from 1st April, 2013.2013
Notification of Establishment of the National Board for Micro, Small and Medium Enterprises, 20132013
Notification of the National Board for Micro, Small and Medium Enterprises (Amendment), 20132013
Public Procurement Policies for MSEs2012
The Central Government constitutes an Advisory Committee, for a period of two years from the date of publication.2012

Related Acts

The Khadi and Village Industries Commission Act, 195635 sections
The Coir Industry Act, 195328 sections

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Every one of the 32 sections of this Act has its own page. This page is not a substitute for legal advice.