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Is SSI and MSME Same

Is SSI and MSME Same

SSI and MSME Registration

You might be aware of the words MSME or SSI, MSME stands for Micro Small and Medium Enterprises and SSI stands for Small Scale Industries. Most of the Entrepreneurs are looking for such a license by which their business will be recognized by the government. MSME or SSI is the best option for them. But most of the times due to different names such as SSI, MSME or Udyog Aadhar people get confused with it. 

But there is no such difference between SSI or MSME, SSI or Small Scale Industries was initiated to develop the Small scale industries with emergence of MSMED (Micro Small and Medium Enterprise Development Act, 2006. Small scale industries (SSI) are those industries in which manufacturing, providing services, productions are done on a small scale or micro scale.

Till the year 2017, the total MSME Registration is above 36.2 million in India. According to the classification of these industries, there are 630.52 lakh micro-enterprises 3.31 lakh small industries and 0.05 medium industries. Among them, 79.63 \\\\\\% of units are owned by males and 20.37\\\\\\% of enterprises are owned by women.

What is MSME/ SSI?

Micro Small and Medium Enterprises are segregated in 3 different types, which are mentioned below:

  • Micro Enterprises - When a business sets 25 lacs rupees in a particular business in the manufacturing sector comes under Micro Enterprises. Under the Services sector when an industry sets 10 lakh rupees comes under the service sector of Micro Enterprises.

  • Small Enterprises - Small Industries are the one who has set more than 25 lakhs and below 5 crores comes under the manufacturing sector and when the industry invests more than 10 lakhs and less than 2 crores under Services sector comes under Small Enterprises.

  • Medium Enterprises - Medium Industries are the one who has set more than 5 crores and below 10 crores comes under the manufacturing sector and when the industry invests more than 2 crores and less than 5 crores under Services sector comes under Small Enterprises.

Types of Industries

Total Investment (Manufacturing)

Total Investment (Services)

Micro Enterprises

Below 25 lakhs

Below 10 lakhs

Small Enterprises

Above 25 lakhs and below 

5 crores

Above 10 lakhs and below

 2 crores

Medium Enterprises

Above 5 crores and below 

10 crores

Above 2 crores and below

5 crores

Small Scale Industries (SSI) is a type of company who manufacture goods or services with the help of relatively smaller machines and a few workers and employees. The limits of Investment for Small Scale Industries are mentioned below:

  • Investment in plant and machinery must be between 25 lakhs and 5 crores for the manufacturing Industries.

  • Investment in plants and machinery must be between 10 lakhs and 2 crores for services industries.

6 Benefits of MSME/ SSI Registration

  1. As soon as a Company gets registered under MSME or SSI, they get liable to utilize various schemes and benefits as per the government.

  1. It is possible to avail a 50 \\\\\\% subsidy on Trademark or patent registration.

  1. MSME or SSI registration will help you to avail the Industrial Promotion Subsidy.

  1. By providing an application to the Electricity Department, the companies registered under MSME can get a concession on the electricity bill.

  1. They are liable to avail reimbursement of ISO certification expense.

  1. MSME or SSI registered company can get 1\\\\\\% exemption on Overdraft facilities.

Objectives of MSME/ SSI registration

  • MSME or SSI registration helps to tally and maintain a roll of the small industries to which the package of incentives and support are targeted.

  • Provide a certificate that enables the units to avail of the statutory benefits, mainly in terms of protection.

  • Serve the purpose of the collection of the statistics.


MSME or SSI registration is utilized as an identity proof for the business for opening a bank account, also for GST Registration. MSME and SSI helps to grow our country economically as well as socially. By this people gets an opportunity to grow and contribute to the social progress of the country.

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