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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