MSME Filing Form-1

Introduction

 

The health of a nation’s economy highly depends on Micro, Small and Medium Enterprises (MSMEs). MSME registration is available through the Indian government to help subscribers sign up for various schemes, secure finance and gain benefits of recognition. In order to claim these benefits, companies must register with the government.

 

This article explains everything you should know about MSME filing forms, including the necessary details, who can apply, what is required for documentation and what papers you should gather.

 

What is MSME?

 

A MSME is an enterprise otherwise known as Micro, Small or Medium Enterprise. These enterprises are differentiated according to the investment in plant and machinery or equipments. The MSME sector in India can be said to play a major role in promoting innovation, creating jobs and driving the economy.

 

The classification of MSMEs in India is based on the following criteria:

 

• Micro Enterprise: Investment in plant and machinery/equipment is up to ₹1 crore and turnover is up to ₹5 crore.

• Small Enterprise: Plant and machinery/equipment investment is not exceeding ₹10 crore and turnover is not exceeding 50 crore.

• Medium Enterprise: Investment in plant and machinery/equipment is not exceeding 50 crore and a turnover of not exceeding 250 crore.

 

What is MSME-1 Form?

 

MSME-1 Form (or MSME Form I) is a ministry of corporate affairs (MCA) mandate that all companies are required to comply with in India. In tracking the firms that are not paying their due to Micro and Small Enterprises (MSMEs).

 

Why is MSME Registration Important?

 

Businesses should go through MSME registration because it helps them reap a variety of benefits.

 

• Access to Government Schemes: MSMEs may take advantage of support from the government by applying for subsidies, rebates and loans.

• Bank Loans with Lower Interest Rates: Registered MSMEs are qualified to get low-interest loans.

• Protection Against Delayed Payments: If buyers do not pay on time, MSMEs are entitled to find relief under the MSME Development Act.

• Tax Benefits: Being registered as an MSME allows businesses to enjoy some tax exemptions that help save money.

 

Filing of MSME-1 Form

 

Who must file MSME-1?

 

• A company whether it is public or private and has outstanding payments to Micro and Small enterprises for more than 45 days from the date of acceptance or deemed acceptance of goods & services must file form MSME-1

 

When should MSME-1 be filed?

 

• A Registrant files MSME-1 data file statements to the Registrar of Companies twice a year during their two half-year periods.

 

MSME Filing Form – Types

 

Businesses have to fill the relevant form to register as MSMEs to the government. There are two types of MSME registration forms:

 

• Udyam Registration (New MSME Registration Process):

1. This is a web-based registration procedure developed by the ministry of MSME in India.
2. Any company which wants to be registered as an MSME will need it.
3. It is extremely simple, fast and does not need any evidences such as turnover and investment evidences. Rather, the applicant declares classification of the enterprise himself.

• EM-II (Entrepreneur Memorandum Part-II):

1. Registration of MSME was done on the basis of this form prior to the establishment of the Udyam registration portal.
2. It was included to the MSME Development Act of 2006.
3. EM-II registered businesses need not be re-registered under Udyam, but are allowed to update their records on Udyam portal.

 

Eligibility for MSME Registration

 

To receive MSME registration, a business will have to meet certain requirements.

 

• A business that engages in manufacturing and production processes or provision of services is eligible to be registered as an MSME.

• A business must fit in one of the MSME categories outlined by limits of investment established above.

 

Note: Sole proprietors together with partnerships private limited companies qualify to obtain MSME registration.

 

Required Documents for MSME Filing

 

• Company Details

To begin the MSME registration process, you need to provide basic and essential information about your business. These details help verify the legitimacy and operational status of your company.

 

1. Name of the enterprise

2. Type of organization (Proprietorship, Partnership, LLP, Pvt. Ltd., etc.)

3. Business address and contact details

4. Date of commencement of business

5. Bank account details of the enterprise (including a cancelled cheque)

6. PAN card number and Aadhar Card number of the proprietor/partners/directors

• Period of Filing

When you are filing your MSME return or complete your registration, you must outline the period being checked. This is crucial for companies that have not submitted their delayed payment returns as required by MSME Samadhan or MSME Development Act.

 

Examples:

 

1. April–September (H1)

2. October–March (H2)

• List of Outstanding Dues to MSMEs

If your company has outstanding payments due to MSME vendors, you must provide a complete list along with relevant details.

 

Details to be Provided:

 

1. Name of MSME supplier

2. Amount due

3. Date from which the amount is due

4. Reason for the delay (if applicable)

• MSME Status Confirmation

1. The enterprise should ensure that it has classified under the new government norms of MSME before it can file. The classification is based on:

• Investment in plant and machinery or equipment

• Annual turnover

1. MSME Classification as per Latest Norms (India):

 

• Digital Signature Certificate (DSC)

To sign and submit MSME forms and returns online, you need a Digital Signature Certificate. It is true particularly if you use online services or ask an expert for help when filing.

 

Types of DSC:

 

1. This was originally standardized as Class 2 and has since been renewed under another heading.

2. For most online filing cases today, Class 3 must be selected.

 

Application to make an MSME-1 Registration Form (Udyam Registration)

 

The registration of MSME-1 is easy and may be conducted through the online provision of the Udyam Registration Portal. Follow the steps below:

 

• Step 1: Visit the Udyam Registration Portal

1. Go to the official Udyam Registration portal: Udyam Registration Portal.

• Step 2: Fill in the Application

Click "For New Registration" from the webpage. After initialization you must enter specific information including:

1. Aadhaar number (linked to the applicant’s name).

2. Business details like name, address, and activity.

3. Investment in plants and machinery or equipment.

4. Annual turnover.

• Step 3: Submit the Application

1. Then put the form back with the typed information. Form submission will give a Unique Registration Number (URN). After several steps are followed to fill the form in the system a Unique Registration Number (URN) is generated.

• Step 4: Obtain Udyam Registration Certificate

1. When you apply, you will receive SMS and confirmation email. Udyam Registration Certificate will be generated and may be downloaded on the portal.

Due Date for Filing Form MSME-1

 

The above firms shall file MCA bi-annual return as MSME-1. Based on schedules, Form MSME-1 will be filed as indicated below.

 

Due Date	Period for which MSME-1 is filed
30 April	For October-March period
31 October	For April-September period

 

Key Points About MSME Filing

 

• Self-Declaration: Udyam Registration can be done only by Aadhaar verification. All the information is declared by users themselves.

• No Fee for Registration: registration of your MSME in Udyam portal is at no cost.

• Validity: The registration of the MSME is valid as long as the business operates without necessarily the possibility of the annual renewal.

 

Benefits of MSME Registration

 

• Financial Benefits:

1. Participants in the program get financial help backed by a low-interest rate.
2. If you vote, you may be eligible for government-provided help.

• Ease of Business:

1. Approval of government tenders given in a short period.
2. Choosing registration first allows businesses to get their licenses easier and faster.

• Tax Benefits:

1. For most MSMEs, income tax along with excise duties and VAT are exempt, but not in all industry sectors nor all geographical areas.

• Protection of Intellectual Property:

1. The registration process of patent and trademarks and copyright becomes easier to MSMEs that are registered by the government.

 

Consequences of Non-Compliance

 

Any company that fails to file the MSME-1 may face huge penalty in the Companies Act 2013. In section 405(4) where a company does not file MSME-1, a penalty of 20,000 will be imposed on the company and each officer who knows but permits the failure through neglect, and up to 100,000 further per day so long as failure persists, which will be the maximum amount.

 

Conclusion

 

The benefits acquisition and formal recognition of government programs require a successful execution of the process of MSME registration. Proper filling of MSME registration form makes businesses gains access to different growth and financing opportunities along with protection benefits. Udyam Registration makes enrolling with the government easy and straightforward to both large and small businesses.

 

Entrepreneurs should file their MSME registration right away to access available benefits which support organizations that have officially registered.

 

Disclaimer

 

The information provided in this blog is purely for general informational purposes only. While every effort has been made to ensure the accuracy, reliability and completeness of the content presented, we make no representations or warranties of any kind, express or implied, for the same. 

 

We expressly disclaim any and all liability for any loss, damage or injury arising from or in connection with the use of or reliance on this information. This includes, but is not limited to, any direct, indirect, incidental, consequential or punitive damage.

Further, we reserve the right to make changes to the content at any time without prior notice. For specific advice tailored to your situation, we request you to get in touch with us.