Business Activities not allowed to obtain Registration as MSMEs in IndiaPosted by udyogaadhar494 on January 23rd, 2021 The Ministry of MSME, through the MSME Act, has laid down a framework to promote micro, small and medium enterprises and provide required support for their sustenance and growth. In order to do so, it has created a National Industrial Classification for all economic activities carried out by businesses across India. This National Industrial Classification which is commonly known as NIC Code was created in partnership with the Central Statistical Organization which operated under the Ministry of Statistics and Programme Implementation. The current version of the National Industrial Classification being used was developed in 2008, whereas this task initially commenced in 1960 various versions have been used till date. The latest version currently used was adopted in 2008. The structure of the NIC Code is primarily divided into 3 groups: Primary Production This consists of Agriculture and Mining related activities. Secondary Production This consists of Manufacturing and Construction related activities. Services This consists of all services such as commerce, administration, transport, telecommunication, etc. In the previous or older system of Udyog Aadhar Registration there were various activities under the NIC code which were included and excluded from the scope of the Scheme to provide benefits or assistance to MSMEs. As per the Office Memorandum numbered UAM/MC/01/2017-SME activities stated below would be excluded from the scope of the Micro, Small, and Medium Enterprise Development Act, 2006. The activities were:
After siting various drawbacks in the current system the Ministry of MSME, through the new system of Udyam Registration has aimed at creating a better platform for everyone genuinely making an effort to sustain their businesses in India. The Ministry of MSME, vide Office Memorandum F.No. 5/2(1)/2020/E has stated the following:
The news was circulated recently that all activities of Retail and Wholesale trade have also been allowed registration as MSME but no such circular or office memorandum from the Ministry of MSME has been issued yet. As retailers and wholesalers across the country express their unhappiness about keeping them out of the new system. Due to this the Ministry of MSME, keeping in mind the current pandemic situation has lend a hand of support by allowing Retailers and Wholesalers to avail Guaranteed Emergency credit which is normally made available to only registered MSMEs. If the government will allow Retailers or Wholesalers to obtain registration is something to watch out for in the coming budgets. Like it? Share it!More by this author |