Form MSME Filing

In India, Micro, Small, and Medium Enterprises (MSMEs) play a pivotal role in driving economic growth, innovation, and employment. To ensure that MSMEs get access to various government benefits, it is mandatory for eligible businesses to file Form MSME (Form 1) under the MSME Development Act, 2006.

The MSME Form 1 filing ensures transparency between buyers and suppliers, especially in cases of delayed payments. The Ministry of Corporate Affairs (MCA) has made it compulsory for certain companies to report their dues to MSME suppliers — making timely filing crucial for compliance.

Form MSME-1 is a half-yearly return that companies must file with the Ministry of Corporate Affairs (MCA) to disclose:

• The outstanding payments due to MSME suppliers, and

• The reasons for such delays (if payments are pending for more than 45 days).

This initiative was launched to protect MSME suppliers from late payments and promote timely business transactions.

Form MSME filing is governed by:

• Section 405 of the Companies Act, 2013

• MSME Development Act, 2006

• MCA Notification dated 22 January 2019

As per the notification, every company that obtains goods or services from MSMEs and has payments pending for more than 45 days must file Form MSME-1.

Note: Delayed filing may attract penalties under the Companies Act, 2013.

All companies registered under the Companies Act, 2013, which:

• Have outstanding payments to MSME suppliers exceeding 45 days from the date of acceptance or deemed acceptance of goods or services, and

• Are required to disclose such outstanding dues to the government through MSME Form 1.

Examples of Applicable Companies:

• Private Limited Companies

• Public Limited Companies

• One Person Companies (OPC)

• Limited Liability Partnerships (LLPs) dealing with MSMEs

When filing the MSME Form 1, companies must provide:

• Total Outstanding Amount to MSME suppliers

• Name of the Supplier and PAN Card Details

• Date of Payment and Invoice

• Reasons for Delay in Payment

• Supplier Classification (Micro or Small Enterprise)

• Details of Goods or Services Purchased

• Collect Supplier Data

1. Identify all vendors registered under the MSME Act.
2. Verify their Udyam Registration Certificate (earlier Udyog Aadhar).

• Prepare Payment Details

1. Check if payments are overdue beyond 45 days.

• Download Form MSME-1

1. Visit the MCA portal.
2. Navigate to Forms Download → MSME Form 1.

• Fill the Form

1. Enter company details, CIN, supplier names, outstanding dues, and reason for delay.

• Attach Digital Signatures

1. Affix DSC of the Director, CEO, or Company Secretary.

• Upload and Pay (if applicable)

1. Submit the form on the MCA portal.
2. No government fees are generally charged for this form.

Failure to file MSME Form-1 may attract penalties under Section 405(4) of the Companies Act, 2013:

Hence, timely filing is crucial to avoid fines and ensure legal compliance.

If your business is an MSME supplier, filing and maintaining MSME status provides numerous benefits:

• Priority in Payments : Buyers must pay within 45 days

• Collateral-Free Loans : Under the Credit Guarantee Fund Scheme

• Interest on Late Payments : 3x the bank rate for overdue payments

• Tax Rebates & Subsidies : On patent and industrial promotion

• Government Tenders Access : Exclusive tenders for MSMEs