{"id":30456,"date":"2025-11-17T00:16:15","date_gmt":"2025-11-16T18:46:15","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=30456"},"modified":"2026-01-06T22:54:59","modified_gmt":"2026-01-06T17:24:59","slug":"all-about-guidelines-for-filling-msme-udyam-registration-form","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/all-about-guidelines-for-filling-msme-udyam-registration-form\/","title":{"rendered":"All about Guidelines for Filling MSME (Udyam) Registration"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dd430c97d9c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dd430c97d9c\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/all-about-guidelines-for-filling-msme-udyam-registration-form\/#Udyog_Aadhaar_Registration_Mandatory_for_Small_Businesses\" title=\"Udyog Aadhaar Registration Mandatory for Small Businesses\">Udyog Aadhaar Registration Mandatory for Small Businesses<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/all-about-guidelines-for-filling-msme-udyam-registration-form\/#Objective_Behind_the_Transition\" title=\"Objective Behind the Transition\">Objective Behind the Transition<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/all-about-guidelines-for-filling-msme-udyam-registration-form\/#Ministry_Responsible_for_Udyam_Registration\" title=\"Ministry Responsible for Udyam Registration \">Ministry Responsible for Udyam Registration <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/all-about-guidelines-for-filling-msme-udyam-registration-form\/#Revised_Classification_of_MSMEs_Turnover-Based\" title=\"Revised Classification of MSMEs (Turnover-Based)\">Revised Classification of MSMEs (Turnover-Based)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/all-about-guidelines-for-filling-msme-udyam-registration-form\/#_How_to_Register_Your_Business_under_Udyog_Aadhaar\" title=\"\u00a0How to Register Your Business under Udyog Aadhaar\">\u00a0How to Register Your Business under Udyog Aadhaar<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/all-about-guidelines-for-filling-msme-udyam-registration-form\/#Documents_Required_for_Udyog_Aadhaar_Registration\" title=\"Documents Required for Udyog Aadhaar Registration : \">Documents Required for Udyog Aadhaar Registration : <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/all-about-guidelines-for-filling-msme-udyam-registration-form\/#Modify_Update_Udyog_Aadhaar_Details_After_Registration\" title=\"Modify \/\u00a0Update\u00a0Udyog Aadhaar Details After Registration : \">Modify \/\u00a0Update\u00a0Udyog Aadhaar Details After Registration : <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/all-about-guidelines-for-filling-msme-udyam-registration-form\/#MSME_Mandatory_Reporting_%E2%80%93\" title=\"MSME Mandatory Reporting &#8211; \">MSME Mandatory Reporting &#8211; <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/all-about-guidelines-for-filling-msme-udyam-registration-form\/#MSME_Reporting_Requirement_under_the_Companies_Act\" title=\"MSME Reporting Requirement under the Companies Act : \">MSME Reporting Requirement under the Companies Act : <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/all-about-guidelines-for-filling-msme-udyam-registration-form\/#MSME_Form_I_%E2%80%93_Filing_Requirements\" title=\"MSME Form I \u2013 Filing Requirements : \">MSME Form I \u2013 Filing Requirements : <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/all-about-guidelines-for-filling-msme-udyam-registration-form\/#Objective_of_MSME_Form_I\" title=\"Objective of MSME Form I : \">Objective of MSME Form I : <\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/all-about-guidelines-for-filling-msme-udyam-registration-form\/#Legal_Triggers_Key_Provisions_related_to_MSME\" title=\"Legal Triggers, Key Provisions related to MSME\u00a0\">Legal Triggers, Key Provisions related to MSME\u00a0<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/all-about-guidelines-for-filling-msme-udyam-registration-form\/#1_Income_Tax_Act_1961_%E2%80%93_Section_43Bh\" title=\"1. Income Tax Act, 1961 \u2013 Section 43B(h)\">1. Income Tax Act, 1961 \u2013 Section 43B(h)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/all-about-guidelines-for-filling-msme-udyam-registration-form\/#2_MSMED_Act_2006_%E2%80%93_Interest_on_Delayed_Payments\" title=\"2. MSMED Act, 2006 \u2013 Interest on Delayed Payments\">2. MSMED Act, 2006 \u2013 Interest on Delayed Payments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/all-about-guidelines-for-filling-msme-udyam-registration-form\/#3_Companies_Act_2013_%E2%80%93_MSME_Form-1\" title=\"3. Companies Act, 2013 \u2013 MSME Form-1\">3. Companies Act, 2013 \u2013 MSME Form-1<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/all-about-guidelines-for-filling-msme-udyam-registration-form\/#4_Schedule_III_%E2%80%93_Companies_Act_Financial_Statement_Disclosures\" title=\"4. Schedule III \u2013 Companies Act (Financial Statement Disclosures)\">4. Schedule III \u2013 Companies Act (Financial Statement Disclosures)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/all-about-guidelines-for-filling-msme-udyam-registration-form\/#5_Annual_Financial_Disclosures_%E2%80%93_Section_22_of_MSMED_Act\" title=\"5. Annual Financial Disclosures \u2013 Section 22 of MSMED Act\">5. Annual Financial Disclosures \u2013 Section 22 of MSMED Act<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-8555\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/udyog-aadhar-DIGIT24-software.jpg\" alt=\"www.carajput.com; Udyog Aadhar\" width=\"1146\" height=\"634\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/udyog-aadhar-DIGIT24-software.jpg 1005w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/udyog-aadhar-DIGIT24-software-300x166.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/udyog-aadhar-DIGIT24-software-768x425.jpg 768w\" sizes=\"(max-width: 1146px) 100vw, 1146px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Udyog_Aadhaar_Registration_Mandatory_for_Small_Businesses\"><\/span><span style=\"color: #000080;\"><strong>Udyog Aadhaar Registration Mandatory for Small Businesses<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Basically, Udyog Aadhaar was not legally mandatory but highly recommended. It provided official government recognition to MSMEs and enabled access to Subsidy schemes, Collateral-free credit, Government tenders, Tax and GST benefits, etc.<\/li>\n<li>From July 1, 2020, Udyog Aadhaar Registration is now replaced by Udyam Registration. Udyog Aadhaar was officially replaced by Udyam Registration, which is now mandatory for MSMEs to avail benefits such as Collateral-free loans under the Credit Guarantee Fund Scheme ; Interest subsidies; Public procurement preference and other government incentives etc Thus, all businesses should migrate to Udyam Registration to stay compliant and competitive.<\/li>\n<li>Overall, Udyam Registration represents a major step toward formalizing the MSME sector, enhancing credibility, and promoting ease of doing business in line with India\u2019s Atmanirbhar Bharat initiative.<\/li>\n<li>The transition from Udyog Aadhaar to Udyam Registration was introduced to make the MSME registration process more transparent, verified, and digitally integrated. Under the earlier Udyog Aadhaar system, registration was based purely on self-declaration, leading to issues such as Duplication of records; Inaccurate information, and Misuse of government incentives<\/li>\n<li>To resolve these issues, the Udyam Registration system was launched, integrating with key government databases like PAN and GSTIN for automatic verification. This ensures Authentic and verified MSME data ; Faster access to loans, subsidies, and schemes; Simplified, paperless, and fully online registration.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Objective_Behind_the_Transition\"><\/span><span style=\"color: #000080;\"><strong>Objective Behind the Transition<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Effective Date of Implementation : The Udyam Registration system officially came into effect on 1st July 2020. From this date All new MSME registrations must be done through the Udyam portal. Existing enterprises registered under Udyog Aadhaar were required to migrate to Udyam.<\/p>\n<p>The initial migration deadline was 31st March 2021, later extended to enable more enterprises to complete the transition. The Udyam system is integrated with Income Tax Portal (for PAN verification) &amp; GST Network (for turnover validation). \u00a0This integration allows real-time verification, reducing fraud and improving accuracy. Following benefit can be taken after registration Registering under Udyog Aadhaar provided several tangible benefits to small and medium enterprises, such as:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Access to collateral-free bank loans under MSME credit guarantee schemes<\/li>\n<li>Eligibility for government subsidies (technology upgradation, capital investment, etc.)<\/li>\n<li>Lower interest rates on bank loans<\/li>\n<li>Preference in government tenders and procurement<\/li>\n<li>Simplified approvals and registrations for other licenses<\/li>\n<li>Income tax and GST benefits for eligible enterprises<\/li>\n<li>Participation opportunities in trade fairs, export promotion, and skill programs<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>Although Udyog Aadhaar is discontinued, existing registrants should update their details under the Udyam portal to continue receiving these benefits.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Ministry_Responsible_for_Udyam_Registration\"><\/span><span style=\"color: #000080;\"><strong>Ministry Responsible for Udyam Registration <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India, introduced and administers the Udyam Registration process. The Ministry\u2019s objectives include Simplifying registration for MSMEs; Ensuring accurate verification through PAN and GST data; Facilitating access to financial, technical, and marketing support<\/p>\n<p>Registered Udyam enterprises are eligible for Priority sector lending; Collateral-free loans under CGTMSE; Protection against delayed payments (under MSMED Act, 2006); Government subsidies and tender benefits. This reform aligns with the government\u2019s goal to digitally empower the MSME sector and support sustainable growth.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Revised_Classification_of_MSMEs_Turnover-Based\"><\/span><span style=\"color: #000080;\"><strong>Revised Classification of MSMEs (Turnover-Based)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The classification is dynamic and automatically updated based on the latest data fetched from the Income Tax and GST systems. This ensures Accurate enterprise categorization; Prevention of misreporting; Seamless access to government schemes based on verified credentials.<\/p>\n<table style=\"height: 366px;\" width=\"1121\">\n<thead>\n<tr>\n<td><strong>Category<\/strong><\/td>\n<td><strong>Investment Limit<\/strong><\/td>\n<td><strong>Turnover Limit<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Micro Enterprise<\/strong><\/td>\n<td>Up to INR 1 crore<\/td>\n<td>Up to INR 5 crore<\/td>\n<\/tr>\n<tr>\n<td><strong>Small Enterprise<\/strong><\/td>\n<td>Up to INR 10 crore<\/td>\n<td>Up to INR 50 crore<\/td>\n<\/tr>\n<tr>\n<td><strong>Medium Enterprise<\/strong><\/td>\n<td>Up to INR 50 crore<\/td>\n<td>Up to INR 250 crore<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"_How_to_Register_Your_Business_under_Udyog_Aadhaar\"><\/span><span style=\"color: #000080;\"><strong>\u00a0<\/strong><strong>How to Register Your Business under Udyog Aadhaar<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Udyog Aadhaar registration was a simple, paperless process designed to help MSMEs gain formal recognition. To register, applicants had to:<\/p>\n<ol>\n<li>Visit the official Udyog Aadhaar portal.<\/li>\n<li>Enter their 12-digit Aadhaar number and verify it through an OTP sent to the registered mobile number.<\/li>\n<li>Fill in essential business details such as Name and type of organization; Business address and location of plant; Bank account information; NIC code (industry classification); Investment and turnover details<\/li>\n<li>After submission, the Udyog Aadhaar Memorandum was generated instantly.<\/li>\n<\/ol>\n<p>This self-declaration-based form made the process quick and convenient, especially for small entrepreneurs with limited resources. Udyog Aadhaar has now been replaced by Udyam Registration. The new Udyam system requires PAN and GSTIN for validation and is essential for MSME recognition and government benefits. For Udyam Registration\u00a0 there is No registration fee was required.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Documents_Required_for_Udyog_Aadhaar_Registration\"><\/span><span style=\"color: #000080;\"><strong>Documents Required for Udyog Aadhaar Registration : <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Udyog Aadhaar was known for its minimal documentation. The only mandatory document was the Aadhaar card of the applicant (business owner or promoter). Clints needed to provide:<\/p>\n<ul>\n<li>Aadhaar number (for identity verification)<\/li>\n<li>Name and type of business (Proprietorship, Partnership, etc.)<\/li>\n<li>Business address and contact details<\/li>\n<li>Bank account details<\/li>\n<li>NIC code (industry classification)<\/li>\n<li>Total number of employees<\/li>\n<li>Investment in plant and machinery<\/li>\n<\/ul>\n<p>Everything was self-declared, and no physical documents had to be uploaded.<br \/>\nPAN and GSTIN were optional under Udyog Aadhaar, but are now mandatory under the Udyam system.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Modify_Update_Udyog_Aadhaar_Details_After_Registration\"><\/span><span style=\"color: #000080;\"><strong>Modify \/\u00a0<\/strong><\/span><span style=\"color: #000080;\"><strong>Update\u00a0<\/strong><\/span><span style=\"color: #000080;\"><strong>Udyog Aadhaar Details After Registration : <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Udyog Aadhaar allowed easy online modification of registration details such as Business name; Address; Activity type; Investment details . Clints \/ professional could log in to the portal, choose \u201cUpdate Udyog Aadhaar\u201d, and make the necessary changes using Aadhaar authentication. However, since Udyog Aadhaar has now transitioned to Udyam Registration, MSMEs should migrate to the Udyam system. Udyam links directly with PAN and GST databases, ensuring:<\/p>\n<ul>\n<li>Accurate enterprise classification<\/li>\n<li>Automatic data validation<\/li>\n<li>Continued access to MSME schemes and subsidies<\/li>\n<\/ul>\n<p>Keeping your business details updated under Udyam ensures compliance and uninterrupted access to government benefits.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"MSME_Mandatory_Reporting_%E2%80%93\"><\/span><strong><span style=\"color: #000080;\">MSME Mandatory Reporting<\/span> &#8211; <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\"><strong>Overview of MSME Classification<\/strong><\/span><\/p>\n<p>The Government of India introduced a new turnover-based classification for Micro, Small, and Medium Enterprises (MSMEs) in February 2018. Under this system, business turnover replaced investment in plant and machinery as the primary criterion for classification.<\/p>\n<p>Originally, the classification under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 was based on investment limits. However, with evolving business needs and ease of doing business reforms, the government revised the criteria to focus on turnover, ensuring more accurate and flexible categorization. This Act applies to both the manufacturing and service sectors.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"MSME_Reporting_Requirement_under_the_Companies_Act\"><\/span><span style=\"color: #000080;\"><strong>MSME Reporting Requirement under the Companies Act : <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In accordance with the notification dated 22nd January 2019, every specified company\u00a0 whether public or private\u00a0 that receives goods or services from MSME suppliers and whose payments remain due for more than 45 days from the date of acceptance or deemed acceptance of goods or services, must comply with MSME reporting requirements.<\/p>\n<p><strong><span style=\"color: #000080;\">Definition of Specified Company:<\/span>\u00a0 <\/strong>A company that Has outstanding payments to MSME suppliers exceeding 45 days, and Is required to file returns with the Ministry of Corporate Affairs (MCA) in MSME Form I.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"MSME_Form_I_%E2%80%93_Filing_Requirements\"><\/span><span style=\"color: #000080;\"><strong>MSME Form I \u2013 Filing Requirements : <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>(a) One-time Return: Every specified company had to file a one-time return in MSME Form I, disclosing details of all outstanding dues to MSMEs as on 22nd January 2019. &amp; The due date for this one-time filing was 21st February 2019 (i.e., within 30 days of the notification). Initially, the form was not available on the MCA website at the time of notification.<\/p>\n<p>(b) Half-Yearly Returns: After the one-time return, companies are required to file two half-yearly returns each financial year, providing details of MSME dues that remain outstanding for more than 45 days.<\/p>\n<table style=\"height: 268px;\" width=\"1192\">\n<thead>\n<tr>\n<td><strong>Return Period<\/strong><\/td>\n<td><strong>Due Date for Filing<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>April to September<\/strong><\/td>\n<td><strong>31st October<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>October to March<\/strong><\/td>\n<td><strong>30th April<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Each return must include The total amount of payments due to MSME suppliers, and The reasons for delay in payment (if applicable).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Objective_of_MSME_Form_I\"><\/span><span style=\"color: #000080;\"><strong>Objective of MSME Form I : <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The purpose of this reporting requirement is to Ensure timely payment to MSMEs by large companies, Improve transparency in business transactions, and Strengthen the financial discipline within the supply chain.<\/li>\n<li>Failure to comply with these filing requirements may attract penal provisions under the Companies (Furnishing of Information about Payment to Micro and Small Enterprise Suppliers) Order, 2019 and relevant sections of the Companies Act, 2013.<\/li>\n<\/ul>\n<h2 data-start=\"351\" data-end=\"396\"><span class=\"ez-toc-section\" id=\"Legal_Triggers_Key_Provisions_related_to_MSME\"><\/span><span style=\"color: #000080;\">Legal Triggers, Key Provisions related to MSME\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h4 data-start=\"398\" data-end=\"446\"><span class=\"ez-toc-section\" id=\"1_Income_Tax_Act_1961_%E2%80%93_Section_43Bh\"><\/span><span style=\"color: #000080;\">1. <strong data-start=\"405\" data-end=\"446\">Income Tax Act, 1961 \u2013 Section 43B(h)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li data-start=\"447\" data-end=\"469\">Trigger \/ Deadline : Payment must be made Within 15 days (where there is no written agreement), or Within 45 days (where a written agreement exists)<\/li>\n<li data-start=\"618\" data-end=\"645\">Key Provision related to Disallowance of Expense: If payment to a Micro or Small Enterprise is made beyond the prescribed time The expense is not allowed as a deduction in that Financial Year. &amp; Deduction can be claimed only in the year of actual payment.<\/li>\n<\/ul>\n<h4 data-start=\"908\" data-end=\"965\"><span class=\"ez-toc-section\" id=\"2_MSMED_Act_2006_%E2%80%93_Interest_on_Delayed_Payments\"><\/span><span style=\"color: #000080;\">2. <strong data-start=\"915\" data-end=\"965\">MSMED Act, 2006 \u2013 Interest on Delayed Payments<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li data-start=\"966\" data-end=\"988\">Trigger \/ Deadline : Applies to payments delayed beyond the limits specified under Section 15 of the MSMED Act.<\/li>\n<li data-start=\"1087\" data-end=\"1114\">Key Provision related Non-Deductible Interest: Interest on delayed payment is treated as a penal expense. &amp; Such interest is not allowable as a tax deduction under the Income Tax Act.<\/li>\n<\/ul>\n<h4 data-start=\"1303\" data-end=\"1347\"><span class=\"ez-toc-section\" id=\"3_Companies_Act_2013_%E2%80%93_MSME_Form-1\"><\/span><span style=\"color: #000080;\">3. <strong data-start=\"1310\" data-end=\"1347\">Companies Act, 2013 \u2013 MSME Form-1<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li data-start=\"1348\" data-end=\"1370\">Trigger \/ Deadline : Amounts outstanding for more than 45 days to Micro and Small Enterprises.<\/li>\n<li data-start=\"1348\" data-end=\"1370\">Key Provision related Half-Yearly Reporting Requirement:MSME Form-1 must be filed by companies on:<\/li>\n<\/ul>\n<p style=\"padding-left: 80px;\" data-start=\"1574\" data-end=\"1624\">31 October \u2013 for the period April to September<\/p>\n<p style=\"padding-left: 80px;\" data-start=\"1631\" data-end=\"1677\">30 April \u2013 for the period October to March<\/p>\n<h4 data-start=\"1684\" data-end=\"1757\"><span class=\"ez-toc-section\" id=\"4_Schedule_III_%E2%80%93_Companies_Act_Financial_Statement_Disclosures\"><\/span><span style=\"color: #000080;\">4. <strong data-start=\"1691\" data-end=\"1757\">Schedule III \u2013 Companies Act (Financial Statement Disclosures)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li data-start=\"1758\" data-end=\"1780\">Trigger \/ Deadline : At the time of preparation of annual balance sheet.<\/li>\n<li data-start=\"1870\" data-end=\"1909\">Mandatory Segregation of MSME Dues: MSME payables must be shown separately from other trade payables. Aging schedule is mandatory, disclosing Less than 1 year, 1\u20132 years, 2\u20133 years, More than 3 years<\/li>\n<\/ul>\n<h4 data-start=\"2122\" data-end=\"2187\"><span class=\"ez-toc-section\" id=\"5_Annual_Financial_Disclosures_%E2%80%93_Section_22_of_MSMED_Act\"><\/span><span style=\"color: #000080;\">5. <strong data-start=\"2129\" data-end=\"2187\">Annual Financial Disclosures \u2013 Section 22 of MSMED Act<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul data-start=\"2586\" data-end=\"3147\">\n<li data-start=\"2188\" data-end=\"2210\">Trigger \/ Deadline : Applicable at the time of finalisation of annual financial statements.<\/li>\n<li data-start=\"2289\" data-end=\"2316\">Key Provision related to annual fiancial disclosure : Specific Notes to Accounts Required, disclosing Principal amount and interest due and unpaid, Interest paid during the year, Interest due for delay period &amp; Total accrued and unpaid interest.<\/li>\n<li data-start=\"2289\" data-end=\"2316\">Timely Payments : Micro and Small Enterprises should leverage Section 43B(h) to ensure faster realisation of dues.<\/li>\n<li data-start=\"2289\" data-end=\"2316\">Accurate Classification: Businesses must correctly classify themselves as Micro, Small, or Medium based on investment and turnover criteria to ensure correct compliance and reporting.<\/li>\n<li data-start=\"2289\" data-end=\"2316\">Disclosure Discipline : Even small and non-corporate entities should maintain robust disclosures, which improves Creditworthiness, Banker confidence &amp; Access to institutional finance<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Quick Access<\/strong><\/span><\/p>\n<ul>\n<li><a href=\"https:\/\/udyamregistration.gov.in\/\"><strong>Print Udyam Certificate<\/strong><\/a><\/li>\n<li><a href=\"https:\/\/udyamregistration.gov.in\/\"><strong>Apply MSME Registration<\/strong><\/a><\/li>\n<li><a href=\"https:\/\/udyamregistration.gov.in\/\"><strong>Apply Udyam Registration<\/strong><\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Udyog Aadhaar Registration Mandatory for Small Businesses Basically, Udyog Aadhaar was not legally mandatory but highly recommended. It provided official government recognition to MSMEs and enabled access to Subsidy schemes, Collateral-free credit, Government tenders, Tax and GST benefits, etc. From July 1, 2020, Udyog Aadhaar Registration is now replaced by Udyam Registration. Udyog Aadhaar was &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9906],"tags":[10366],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30456"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=30456"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30456\/revisions"}],"predecessor-version":[{"id":30886,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30456\/revisions\/30886"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=30456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=30456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=30456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}