The Criterion for filing MSME I form (MCA) by those specified companies whose outstanding payment to MSMEs suppliers is exceeding 45 days, is being discussed below:

• Order Named: Specified Companies (Detailed information regarding payment to micro and small enterprise suppliers) Order, 2019
• Date of Notification: In context to Order dated January 22, 2019, issued under Section 405 of the Companies Act, 2013
• Effective Date: From the Date of Publication in the Official Gazette

What is MSME Form 1 (MCA)?

The MSME I Form is to provide information on a half-yearly basis in the context of the outstanding payments to Micro or Small Enterprises for a period exceeding 45 days with the Registrar of Companies (ROC).

Major changes have been made by the Ministry of Corporate Affairs in the context of protecting the interest of the small group of companies or businesses. He laid emphasis on following compliance by all Specified Companies Whether Public or a Private Company, Micro or Small.

A half-yearly return is required to be submitted to the Ministry of Corporate Affairs on a mandatory basis, by all those companies who receive the supply of goods or services from Micro or small enterprises and the payment done to these micro and small enterprise suppliers exceed forty-five days from the date of acceptance (or deemed acceptance) of the relevant good or services.

The following points should be stated in it:

• the amount of payment due and
• the reasons for the delay

Following the provision of section 405 of the Companies Act, 2013, (18 of 2013) the Central Government made it necessary for all the “Specified Companies” to furnish the above-notified information about the payment to micro and small enterprise suppliers.

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