Filing of MSME Return (Form MSME)
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Overview
Who Is It For
Implications
FORM MSME-1: Return Of Timely Payments To MSME
Form MSME-1 under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, is integrated with the Companies Act, 2013 is a half-yearly return that ensures transparency in payment practices, promoting financial stability for smaller enterprises.
Form MSME-1 serves as a mandatory disclosure mechanism for companies to report outstanding dues to MSME-registered suppliers exceeding 45 days from the date of acceptance or deemed acceptance of goods or services. Mandated by Section 405 of the Companies Act, 2013, it empowers the Ministry of Corporate Affairs (MCA) to monitor payment delays, safeguard MSME cash flows, and enforce accountability. By submitting this form, businesses not only comply with the law but also contribute to a healthier ecosystem where small suppliers thrive without the burden of extended credit periods.
Form MSME-1 is more than a regulatory checkbox—it’s a commitment to ethical procurement and ecosystem resilience. By prioritizing timely payments and meticulous reporting, companies can fortify supplier ties, mitigate risks, and position themselves as responsible corporate citizens.
Who Must File the Form and the Timelines of Filing?
Form MSME-1 is required to be filed by every company that procures goods or services from MSMEs holding a valid Udyam Registration.
The form is required to be filed on a half-yearly basis as per the following timeline:
- For Half Year From April 1 to September 30- By October 31
- For Half Year From October 1 to March 31– By April 30
Implications of Non-Compliance?
The Company and every Officer in Default shall be liable to a base penalty of ₹20,000. In case of continuous default, an additional penalty of ₹1,000 per day, up to a maximum of ₹3 lakh.
Frequently Asked Questions
How do I start a business in India as a foreign company?
Foreign companies can set up a liaison office, branch office, or wholly-owned subsidiary in India. Corpsecure assists with RBI, FEMA, and ROC compliances for a smooth entry.
What is the cost of company registration in India?
The cost depends on the type of company (Pvt Ltd, LLP, OPC, etc.) and government fees. On average, registration can start from ₹7,999 onwards with professional assistance.
How long does it take to register a company in India?
With proper documents, company registration can take 7–15 working days. Corpsecure ensures faster turnaround by managing documentation and compliance.