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

Real Estate

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, camsprasad@gmail.com

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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