Preface

Micro, Small and Medium Enterprise (MSME) sector has emerged as a prominent and highly vibrant sector of the Indian economy. There are roughly 6.3 crores MSMEs in India which contribute approximately 30% to the Indian GDP. The MSME sector contributes significantly to employment generation with lower capital costs in comparison to large industries. Therefore it can be called as a Backbone of Indian Economy. Considering the importance of MSME sector, we are presenting this present Book which consists of rich and comprehensive matter on this Subject.

The entire gamut of Law and Practice relating to MSMEs has been thoughtfully divided into XI Parts in this Book, each comprising of several Chapters.

Part I of this Book deals with the concept of MSME, Important Terminologies, Legal requirements pertaining to Classification and Re-classification of MSMEs.

Part II is named "Business Organisations vis--vis MSMEs". It enlightens readers with the different business forms, such as, Sole Proprietorship, Partnership Firm, Hindu Undivided Family, Limited Liability Partnership and Company, in which a MSME may be incorporated.

Part III is devoted exclusively to Registration of MSMEs. The subject matter of this part is divided into two chapters, i.e., (1) Udhyam Registration and (2) Other Registrations and Licences. Single window compliances, online mechanism for registration and other compliances for MSME have been explained in detail under this Part.

Part IV of this Book explains the special benefits that are available to the MSMEs. These include: Procurement Policies for Goods and Services produced and provided by MSMEs; Legal provisions to check delayed payment to MSMEs as well as to ensure timely and smooth flow of credit to MSME; Provisions for financing the trade receivable of MSME from corporate buyers through multiple financiers on a secure digital platform,viz: TReDS; Loans offered by Government with the help of various schemes for financial support and funding, and many more benefits with measures, schemes and concessions.

Government of India runs numerous schemes and promotes various programmes and projects with a view to assist MSMEs and help them to scale up their business. Part V of this Book provides a compilation of the Schemes available for MSME at one place. These Schemes are arranged Ministry wise for the ease of reference.

Start-up sector is now being seen as the future of Indian Economy. If proper incentives are provided then, several of them have the capabilities to turn themselves into Unicorns. Part VI of this book deep dives into Start-ups. Meaning of start-up as well as Start-up India scheme are exhaustively discussed in this Part.

MSMEs that are willing to move towards corporatization, have to fulfil the Company Law compliances. Part VII titled as "MSMEs and Companies Act, 2013" enshrines the provisions of the Companies Act, 2013 applicable to MSME. The MSMEs are entitled to lesser compliances, relaxations and exemptions under Companies Act, 2013 on several matters including the conduct of Board meetings, Rotation of auditor, Internal Financial Control reporting, Annual Return, Financial Statements, etc.

Part VIII is aptly titled as "MSMEs and Income Tax Act" is divided into sections from A to F which elaborates the Income tax provisions that are applicable MSMEs. These include suitable form of entity and basis of charge on MSMEs, computation of profits and gains of MSMEs, various obligations, compliances related precautions by MSMEs, incentives available to MSME companies by way of reduced tax rates.

Part IX christened as "MSME and GST Laws" covers compliance provisions relating to registration, composition levy scheme designed for small and medium taxpayers whose turnover is up to the prescribed limit, refunds and returns, tax invoice, input tax credit and exemption from compulsory audit for MSME sector etc.

The newly introduced concept of Pre-packaged Insolvency Resolution Process is the subject matter of Part X of this Book.

The concluding Part XI of this book consists of Annexures which includes the Micro, Small and Medium Enterprises Development Act, 2006; the Micro, Small and Medium Enterprises Development (Furnishing of Information) Rules, 2016; the Micro, Small and Medium Enterprises Fund Rules, 2016 and Frequently Asked Questions relating to MSMEs.

Even more exciting about the Book is that all latest and important Circulars, Notifications, Rules, Regulations which need to be covered for the sake of comprehensiveness and reference are also made part of this Book.

The Book would be of immense utility not only for Entreprenuers and Professionals but other knowledge seekers who are in some or other manner connected to MSMEs.

All efforts have been made to make the Book free from any errors and mistakes. However, we solicit feedback from our learned readers, bringing to our notice any mistakes, errors, omissions or discrepancies that might have crept in.

JODHPUR	--Authors
18 December, 2021