MSME Registration
There are number of advantages for Micro, Small and Medium
Enterprises under MSMED Act 2006. For registration, businessmen /
entrepreneur need to file and Entrepreneurs Memrandum.
Filing of Entrepreneurs Memorandum (EM)
Section 8 of the
Micro, Small and Medium Enterprises Development (MSMED) Act, 2006
provides for filing of memorandum by a Micro, Small or Medium
Enterprise.
Sub-section (2) of
section 8 stipulates that the form of the Memorandum, the procedure of
its filing and other matters incidental thereto shall be such as
notified by the Central Government.
The memorandum may be
filed by all three categories of enterprises with the District
Industries Centre in the jurisdiction of which the enterprise is (or,
is proposed to be) located.
The procedure for filing it has been outlined in Schedule II of the Notification for the format of EM.
Procedure for Filing Entrepreneurs Memorandum
(a) Form of the Entrepreneurs Memorandum can be downloaded from the
Internet, the address of which can be obtained from Directorate dealing
with Micro, Small & Medium Enterprises of the State Governments/
UTs. or the hard copies of the same can be obtained from the District
Industries Centres. This form can also be downloaded from the SIDO
website i.e. www.laghu-udyog.com or www.dcmsme.gov.in
(b) It is optional for any person who intends to establish a micro or
small enterprise (in manufacturing / service sector) to file the
Memorandum of Micro Enterprise or Small Enterprise, as the case may be,
(Part 1 of the Entrepreneurs Memorandum) with the District Industries
Centre of its area.
(c) It is optional for any person who intends to establish a medium
enterprise (service sector) i.e. engaged in providing or rendering of
services, to file the Memorandum of Medium Enterprise, (Part 1 of the
Entrepreneurs Memorandum)with the District Industries Centre of its
area.
(d) It is mandatory for any person who intends to establish a medium
enterprise (manufacturing sector) i.e. engaged in the manufacture or
production of goods to file the Memorandum of Medium Enterprise (Part 1
of the Entrepreneurs Memorandum) with District Industries Centre of its
area.
(e) The form of Memorandum is in two parts. Once the above
enterprises start production or start providing or rendering services,
they should file Part II of the Entrepreneurs Memorandum to District
Industries Centre.
(f) In case of non-filing of Part II of the Entrepreneurs Memorandum
within two years of the filing of Part I, the Memorandum (Part I) filed
by the entrepreneur will become invalid.
(g) In case of change in the investment in plant and machinery or in
equipment, the enterprises who have already filed Entrepreneurs
Memorandum should inform the District Industries Centre of the same in
writing within one month of the change in investment.
(h) In case of change of products and that of services or addition in
products or services, the enterprises who have already filed
Entrepreneurs Memorandum should inform the District Industries Centre of
the same in writing within one month of the change.
Upon filing of EM:
The District Industries Centre shall fill all the codes in the form
of the Memorandum and issue an acknowledgement after allotting an EM
number, date of issue and category of the unit within five days of the
receipt of the form of Memorandum by post or same day, if the form of
Memorandum is submitted in person as well as online.
Before issuing the acknowledgement, the District Industries Centers
shall make sure that the form is complete in all respect and
particularly the form is signed and is accompanied with an undertaking,
which is a part of the form of Entrepreneurs Memorandum.
The District Industries Centre shall maintain record of all the
Entrepreneurs Memorandum so filed in respect of micro and small
enterprises and medium enterprises engaged in providing and rendering
services.
District Industries Centers shall forward a copy of the Entrepreneurs
Memorandum so filed with EM number allotted to the Small Industries
Service Institutes of their State/Jurisdiction.
The District Industries Centre shall maintain record of all the
Entrepreneurs Memorandum so filed in respect of medium enterprises
engaged in production/manufacturing of products and forward one copy
each of the Entrepreneurs Memorandum with EM number allotted to Small
Industries Service Institutes of their State/Jurisdiction and to Joint
Development Commissioner (MSME Pol.) in the Office of the Development
Commissioner (Small Scale Industries).
The following form basis of evaluation of Entrepreneurs Memorandum:
(a) The unit has obtained all necessary clearances whether
statutory or administrative. e.g. drug license under drug control order,
NOC from Pollution Control Board, if required etc.
(b) Unit does not violate any locational restrictions in force, at the time of evaluation.
(c) Value of plant and machinery is within prescribed limits.
(d) Unit is not owned, controlled or subsidiary of any other industrial undertaking as per notification.
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