Query on msmed act 2006

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)   (8229 Points)

21 February 2012  

Dear friends,

 

A unit has to get registered under Micro, Small & Medium Enterprises Development Act 2006 depending upon the amount of investment in machinery & other equipments. It will be treated as micro (upto Rs.25 lacs), small (25 lacs to 5 crores) or medium enterprise (5 crores to 10 crores) accordingly.

 

A company has 5 factories at different locations in the State. Now the question is the ceiling for investment as above will be considered for one particular factory only or for all factories taken together, i.e. at the company level. Prior to this Act coming into force, government had issued a notification under Industries (Development & Regulation) Act stating that investment for all units will be clubbed for this purpose. However, I have not come across such circular or notification under MSMED Act. Kindly clarify with supporting circular if any.

 

Thanks in advance.