MSME stands for micro, small and medium enterprises. Any enterprise that falls under any of these three categories can apply for registration that falls under the MSMED Act. The act facilitates promotion and development of enterprises and improves its functioning. Any type of entity such as proprietorship enterprises, enterprises managed by Hindu undivided family, enterprises run by association of individuals, co-operative societies, partnership firms and enterprises managed by companies or undertakings etc. can apply for MSME registration. After the registration, an enterprise becomes eligible to get the benefits under the MSMED Act.
There are two stages of registration namely provincial and permanent (final). At the pre investment stage an enterprise is granted a provincial registration. After getting provincially registered, an enterprise can apply for permanent registration just before launching its production facilities. However, an enterprise that is already operating need not have to apply for provincial registration as it is eligible to apply for permanent registration. Enterprises are further categorized into two types of industries- manufacturing industry and service industry. The status of an enterprise under the MSMED Act is determined according to the investment slab under which an enterprise falls.