Micro, Small, Medium and Large Enterprises

Government of India under Ministry of Micro, Small and Medium Enterprises have enacted the Micro, Small and Medium Enterprises Development Act 2006 and has put into operation effective from 2-10-2006. Under the Act, Micro, Small and Medium Enterprises are classified as under:

For Micro and Small Enterprises filing of Entrepreneurs Memorandum (EM) Part-I and Part-II are optional and for Medium Enterprises filing of Entrepreneurs Memorandum (EM) Part-I and Part-II are mandatory.

These Micro, Small & Medium Enterprises are to file The Entrepreneurs Memorandum (EM) Part-I and Part-II at District Industries Centre (DIC).

Large Enterprises: Industrial units having investment exceeding Rs. 10 crore in plant and machinery are classified as large industrial units.

An Entrepreneur or a company desirous to set up a large project needs an approval from Government of India (GOI) under the Industries (Development and Regulations) Act. In July 1991, GOI liberalized the licensing procedure and exempted almost all industries from taking industrial license, except few industries which are of strategic importance. As per the present licensing procedure, only two industries are reserved for the public sector and four industries, which are of strategic importance, need an industrial license. The remaining industries are required to file Industrial Entrepreneur Memorandum (IEM) with GOI, on observing certain requirements with respect to location and environment.

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