Notes on MSME for Real Estate
(Micro, Small & Medium Enterprises)
1. IDR Act 1951 (Industries Development and Regulation Act, 1951
2. MSMED Act 2006 (Micro, Small & Medium Enterprises Development (MSMED) Act, 2006)e.f. 02.10.2006
3. MSME sector contributes about 40% of the total employment in India
4. Contribution of MSME sector to India’s GDP is ~30% and ~48% of India’s Export
5. MSME are classified in two categories:
| Manufacturing Enterprises | Service Enterprises |
| Engaged in the manufacture or production of goods of any industry in first schedule to the IDR Act, 1951 or employing plant and machinery in final product having a distinct name or character or use. | Engaged in providing or rendering of services |
6. Enterprises are classified in three categories: Composite Criteria :
Investment and Turnover for Manufacturing & Services [NEW]
NN dt.1.6.20 (w.e.f 1.7.2020) MSME NN dt 1.6.2020.pdf
| Types | Investment (Rs. in Crore) | Turnover (Rs. in Crore) i.e Five times of investment |
| Micro | < 1 | < 5 |
| Small | < 10 | < 50 |
| Medium | < 50 | < 250 |
Investment in Plant & Machinery / Equipment for Manufacturing & Services [Existing]
| Types | Manufacturing | Service |
| Micro | < 25 Lakh | < 10 Lakh |
| Small | < 5 Crore | < 2 Crore |
| Medium | < 10 Crore | < 5 Crore |
7. Registration; Udyog Aadhar http://udyogaadhar.gov.in
In case of a company, PAN of the Co. along with Aadhaar number of the Authorised signatory shall be specified in the memorandum;
8. NIC Code (National Industry Classification Code: Real Estate & Construction
| Section L | Real estate activities | |
| Division 68 | Real estate activities | |
| Group | 681 | Real estate activities with own or leased property |
| Group | 682 | Real estate activities on a fee or contract basis |
| Section F | Construction | |
| Division 41 | Construction of buildings | |
| Group | 410 | Construction of buildings |
| Division 42 | Civil engineering | |
| Group | 421 | Construction of roads and railways |
| Group | 422 | Construction of utility projects |
| Group | 429 | Construction of other civil engineering projects |
| Division 43 | Specialized construction activities | |
| Group | 431 | Demolition and site preparation |
| Group | 432 | Electrical, plumbing and other construction installation activities |
| Group | 433 | Building completion and finishing |
| Group | 439 | Other specialized construction activities |
Compiled by CA. M.S.Prasad, FCA, MBA, LL.B, B.Com(H),
+91 88022 53937, 0120-713 8235, [email protected]
Disclaimer: This insight is meant for informational purpose only and should not be considered as an advice or opinion, or otherwise, whatsoever. Author does not intend to advertise its services through this insight, and not responsible for any error or omission in this insight or for any action taken based on its contents.
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i am from real eastate i am intersted in gov. polices related to real eastate in msme will you help me thanks
Intrested in civil contractors
Benifits as service provider
Is msme loan eligible for constructing bldg for doing business and renting out for business
i am from real eastate i am intersted in gov. polices related to real eastate in msme will you help me thanks