The Ministry of Micro, Small, and Medium Enterprises (“Ministry”) has revised the financial criteria for defining businesses under the Micro, Small and Medium Enterprises Development Act, 2006 (“Act”). These modifications will gain effect from 1st April, 2025.
Key Highlights:
- The classification of micro enterprises has been updated: previously defined as enterprises with investments in plant and machinery or equipment not surpassing Rs.1 crore and turnover not exceeding Rs. 5 crores, they will now qualify as micro enterprises if their investment does not exceed Rs. 2.5 crores and turnover does not exceed Rs. 10 crores.
- A small enterprise, which was earlier defined as an enterprise with an investment in plant and machinery or equipment not exceeding Rs. 10 crores and a turnover not exceeding Rs. 50 crores, will now be classified as one where the investment does not exceed Rs. 25 crores and the turnover does not exceed Rs. 100 crores.
- A medium enterprise, which was earlier defined as an enterprise with an investment in plant and machinery or equipment not exceeding Rs. 50 crores and a turnover not exceeding Rs. 250 crores, will now be classified as one where the investment does not exceed Rs. 125 crores and the turnover does not exceed Rs. 500 crores.
Source: Ministry of Micro, Small, and Medium Enterprises
![Social Media Creative Format_Master File_19.09.2022 [Autosaved] final](https://lexplosion.in/wp-content/uploads/2022/09/Social-Media-Creative-Format_Master-File_19.09.2022-Autosaved-final-150x150.jpg "Now, companies having a paid-up capital not exceeding Rs. 4 crores and turnover not exceeding Rs 40 crores are considered as small company ; MCA revises definition of small company")
