Which companies must file MSME-1?

Every company required to be audited under Section 44AB of the Income-Tax Act, 1961 (i.e., turnover exceeding ₹10 crore where 95%+ receipts are banking) and every listed company. The rule is contained in the Companies (Specified Companies) Report on Outstanding Dues to Micro and Small Enterprises Rules, 2018.

What is the due date for MSME-1?

For April-September half-year - 30 October. For October-March half-year - 30 April. Both are statutory deadlines under Rule 3 of the 2018 Rules.

Is there a fee for filing MSME-1?

No government fee if filed within the due date. Belated filing attracts additional fee of ₹100 per day under Section 403 of Companies Act 2013 - there is no upper cap.

Does the MSME supplier itself have to file any half-yearly return?

No. The earlier Form I and Form II under Rule 6 of MSME Development Rules, 2006 were discontinued by the MSME Development (Amendment) Rules, 2019 (G.S.R. 561(E)). The surviving return is MSME-1 filed by the **buyer**, not the MSME.

What is the rate of interest the buyer must pay on delayed payment?

Three times the bank rate notified by RBI under Section 2 of the Interest on Deposits Act, 1978, compounded with monthly rests. As on January 2026 the RBI bank rate is 6.50%, hence the effective rate is 19.5% per annum (3×6.50%).

Is a Nil MSME-1 return mandatory if there are no dues to MSMEs?

Yes. The MCA clarification requires a Nil return to be filed even where the company has no MSME suppliers or no outstanding dues, to confirm compliance with the rule.

What is Section 43B(h) of Income-Tax Act?

Inserted by the Finance Act 2023, effective AY 2024-25, it disallows a buyer's deduction for payments to MSME suppliers not made within 45 days (or 15 days where no written agreement exists). The deduction is allowed in the year of actual payment.

Can the buyer dispute an MSME's claim for delayed-payment interest?

Yes - the buyer can approach the Micro and Small Enterprises Facilitation Council (MSEFC) under Section 18 of MSMED Act. The MSEFC's award is final and executable as a civil court decree; appeal lies to the High Court under Section 24.

Editor's pickComplianceRoC Mumbai Jurisdiction

Msme Return Filing in Mumbai

File for MSME return filing with confidence. I-Pro Solutions provides step-by-step guidance, document checklists, fee breakdown and online submission for msme.

Statutory basis: Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 — Sections 15 to 24 (delayed payment mechanism to MSMEs). Half-yearly return under Companies (Specified Companies) Report on Outstanding Dues to Micro and Small Enterprises Rules, 2018 (Notification G.S.R. 653(E) dated 22 October 2018) — issued under Section 405 of Companies Act 2013 read with Section 9 of MSMED Act 2006. Income-Tax Act, 1961 — Section 43B(h) (inserted by Finance Act 2023, effective AY 2024-25)..

Turnaround

7-14 Working Days

₹

Starts from

₹599

Money-back accuracy

Guaranteed

Total starting from

₹599

Professional fee (no government fee)

Professional fee₹599 starts with

Government fee (est.)No fee

Turnaround7-14 Working Days

Money-back accuracy. CA/CS specialist. Tracked client portal.

CONFIRMEDverified 25 Aug 2026

Total starting from

₹599

7-14 Working Days

Prof: ₹599•Govt: No fee• Guaranteed

Dedicated specialist

CA-led, named point of contact

Tracked client portal

Real-time status, end-to-end

Money-back accuracy

Refile-free if our error

Flat-fee pricing

No hidden charges, ever

About this service

Udyam Registration (MSME) is the official government registration certifying micro, small, and medium enterprises in India under the MSMED Act, 2006. Registration unlocks priority sector bank lending, 50% discount on government trademark fees, collateral-free credit access, protection against delayed payments under Section 15 of MSMED Act, and government tender preferences.

Eligibility & thresholds

Minimum

Micro: Invest ≤ ₹1 Cr & Turn ≤ ₹5 Cr
Small: Invest ≤ ₹10 Cr & Turn ≤ ₹50 Cr
Medium: Invest ≤ ₹50 Cr & Turn ≤ ₹250 Cr

Maximum

Manufacturing and service units eligible
Subsequent graduation on business growth
No limit on enterprise transactions

Statutory floor

Zero official government application fee
Mandatory PAN & Aadhaar integration
Automatic IT and GST portal synchronization

What's included

Everything in one transparent fee — no add-ons, no surprises.

Investor-Centric AOA Drafting

If you plan to raise institutional funding, standard Articles of Association (AOA) will not suffice. Venture capitalists demand specific clauses regarding right of first refusal (ROFR), tag-along/drag-along rights, and anti-dilution provisions. Our elite corporate lawyers draft sophisticated AOAs that anticipate future funding rounds, preventing costly and time-consuming structural overhauls when you secure term sheets.

Complex Multi-Founder Structuring

Co-founder disputes are the leading cause of early-stage startup failure. We don't just register your company; we advise on optimal equity splits, director roles, and authorized capital distribution. We provide templates for Co-Founder Agreements and vesting schedules, ensuring that the foundational relationship between partners is legally documented and aligned for long-term stability.

Rapid SPICe+ Processing Engine

Time is of the essence for startups. We utilize an advanced compliance engine that preemptively validates all data entered into the SPICe+ (INC-32) form. By cross-referencing PAN databases, checking DIN eligibility, and formatting registered office proofs perfectly, we eliminate typographical errors that typically cause frustrating ROC resubmission delays, ensuring first-pass approval.

Strategic Authorized Capital Advisory

Determining your initial Authorized Share Capital is a delicate balance. Set it too low, and you'll immediately face high fees to increase it during your first seed round. Set it too high, and you pay unnecessary upfront government stamp duty. We analyze your 12-to-18-month funding roadmap to recommend the exact optimal capital structure that minimizes immediate costs while accommodating your immediate growth.

ESOP Implementation Framework

Attracting top-tier talent in the startup ecosystem often requires offering Employee Stock Ownership Plans. A Private Limited Company is the only structure that efficiently supports this. As part of our premium advisory, we structure your initial cap table to accommodate a future ESOP pool seamlessly, ensuring you are ready to incentivize your founding team.

Comprehensive Post-Incorporation Toolkit

Receiving the Certificate of Incorporation is just the starting line. Within the first 30 to 180 days, you must open a bank account, appoint a statutory auditor (ADT-1), and file the Commencement of Business (INC-20A). We provide a complete post-incorporation execution service, handling these mandatory compliance milestones so you can focus entirely on product development and sales.

Government Fee Breakdown

Government charges only — separate from I-Pro's professional fee. All figures verified as of 25 August 2026.

Fee Component	Amount (₹)	Basis / Authority
Msme Return Filing in Mumbai Statutory Filing	₹0 (No government fee)	Government fee is Nil / exempted under applicable statutory rulesOfficial Regulator
Total Government Fee	No fee	(for default assumptions stated below)

Fee Component

Msme Return Filing in Mumbai Statutory Filing

Amount (₹)

₹0 (No government fee)

Basis / Authority

Government fee is Nil / exempted under applicable statutory rulesOfficial Regulator

Total Government Fee

No fee

(for default assumptions stated below)

Government charges only — verified statutory schedule for Mumbai, Maharashtra. Professional fee separate.

Required documents

Each list identifies exactly what to provide — and what you do not need to submit. Use the accordions to expand.

1
List of MSME suppliers (by URN) to whom dues are outstanding for more than 45 days as on the half-ye
List of MSME suppliers (by URN) to whom dues are outstanding for more than 45 days as on the half-year-end date.
2
Amount of principal outstanding + interest payable under Section 16 of MSMED Act.
Amount of principal outstanding + interest payable under Section 16 of MSMED Act.
3
Reasons for the delay (declaration by the company - self-attested).
Reasons for the delay (declaration by the company - self-attested).
4
SRN of last filed MSME-1 (for resubmission / revision reference).
SRN of last filed MSME-1 (for resubmission / revision reference).
5
Digital Signature Certificate (DSC) of the authorised director / Company Secretary in Practice (PCS)
Digital Signature Certificate (DSC) of the authorised director / Company Secretary in Practice (PCS) - for MCA V3 upload.

How it works

Each step is labelled with who performs it — Customer, I-Pro, or the Regulator. Form names are linked to the official portal.

1
Customer⏱ 1 - 3 Days
Step 1: **Customer / I-Pro**
**Customer / I-Pro**: Obtain list of all suppliers and identify MSMEs (by Udyam Registration Number / Udyog Aadhaar Memorandum number) as on the half-year-end date.
2
I-Pro⏱ 1 - 3 Days
Step 2: **I-Pro**
**I-Pro**: Verify each supplier's MSME status by entering URN on Udyam portal - print certificate as evidence of status as on the date of supply.
3
I-Pro⏱ 1 - 3 Days
Step 3: **I-Pro**
**I-Pro**: Compute days from acceptance of goods/services (Section 2(g) of MSMED Act) to half-year-end; identify cases where 45-day limit has been crossed.
4
I-Pro⏱ 1 - 3 Days
Step 4: **I-Pro**
**I-Pro**: Calculate interest under Section 16 at three times the bank rate notified by RBI (compounded monthly on a daily-rest basis).
5
I-Pro⏱ 1 - 3 Days
Step 5: **I-Pro**
**I-Pro**: Open MCA V3 portal → MCA Services → MSME-1 → "Half Yearly Return".
6
I-Pro⏱ 1 - 3 Days
Step 6: **I-Pro**
**I-Pro**: Enter CIN, half-year (April-September → return due 30 October; October-March → return due 30 April), fill in particulars of each MSME supplier (URN, supplier name, amount, days delayed, interest).
7
I-Pro⏱ 1 - 3 Days
Step 7: **Customer**
**Customer**: Verify the declaration; affix DSC of authorised signatory.
8
I-Pro⏱ 1 - 3 Days
Step 8: **I-Pro**
**I-Pro**: Upload Form MSME-1 on MCA V3 - system issues Service Request Number (SRN).
9
I-Pro⏱ 1 - 3 Days
Step 9: **I-Pro**
**I-Pro**: For Nil return (no outstanding dues), file MSME-1 with zero entries - mandatory even if no transactions.
10
Regulator⏱ 1 - 3 Days
Step 10: **I-Pro**
**I-Pro**: Hand over SRN acknowledgment and challan; advise customer on Section 43B(h) tax-disallowance impact for delayed payments.

Post-registration compliance

What to file next. I-Pro handles these as part of the annual compliance package.

Filing	Form	Deadline
Commencement of Business (Form INC-20A) Penalty: ₹50,000 for company + ₹1,000/day for directors (max ₹1 Lakh)	`One-time mandatory`	Within 180 days of incorporation after bank capital deposit
First Auditor Appointment (Form ADT-1) Penalty: Statutory non-compliance; prosecution of defaulting officers	`5-year tenure`	Within 30 days of incorporation by Board of Directors
Annual Financial Statements (Form AOC-4) Penalty: ₹100 per day of delay per form with no statutory ceiling	`Annual`	Within 30 days of AGM (by 29 October annually)
Annual Return (Form MGT-7) Penalty: ₹100 per day of delay per form with no statutory ceiling	`Annual`	Within 60 days of AGM (by 29 November annually)
Director KYC Verification (DIR-3 KYC) Penalty: ₹5,000 statutory fee per DIN + deactivation	`Annual`	Every designated partner / director holding active DIN by 30 September

Filing

Commencement of Business (Form INC-20A)

Penalty: ₹50,000 for company + ₹1,000/day for directors (max ₹1 Lakh)

Form

One-time mandatory

Deadline

Within 180 days of incorporation after bank capital deposit

Filing

First Auditor Appointment (Form ADT-1)

Penalty: Statutory non-compliance; prosecution of defaulting officers

Form

5-year tenure

Deadline

Within 30 days of incorporation by Board of Directors

Filing

Annual Financial Statements (Form AOC-4)

Penalty: ₹100 per day of delay per form with no statutory ceiling

Form

Annual

Deadline

Within 30 days of AGM (by 29 October annually)

Filing

Annual Return (Form MGT-7)

Penalty: ₹100 per day of delay per form with no statutory ceiling

Form

Annual

Deadline

Within 60 days of AGM (by 29 November annually)

Filing

Director KYC Verification (DIR-3 KYC)

Penalty: ₹5,000 statutory fee per DIN + deactivation

Form

Annual

Deadline

Every designated partner / director holding active DIN by 30 September

Penalties for non-compliance

Statutory penalties under governing regulatory provisions. Avoid non-compliance delays.

Non-compliance	Provision	Penalty
Commencement of Business (Form INC-20A)	One-time mandatory	₹50,000 for company + ₹1,000/day for directors (max ₹1 Lakh)
First Auditor Appointment (Form ADT-1)	5-year tenure	Statutory non-compliance; prosecution of defaulting officers
Annual Financial Statements (Form AOC-4)	Annual	₹100 per day of delay per form with no statutory ceiling
Annual Return (Form MGT-7)	Annual	₹100 per day of delay per form with no statutory ceiling
Director KYC Verification (DIR-3 KYC)	Annual	₹5,000 statutory fee per DIN + deactivation

Non-compliance

Commencement of Business (Form INC-20A)

Provision

One-time mandatory

Penalty

₹50,000 for company + ₹1,000/day for directors (max ₹1 Lakh)

Non-compliance

First Auditor Appointment (Form ADT-1)

Provision

5-year tenure

Penalty

Statutory non-compliance; prosecution of defaulting officers

Non-compliance

Annual Financial Statements (Form AOC-4)

Provision

Annual

Penalty

₹100 per day of delay per form with no statutory ceiling

Non-compliance

Annual Return (Form MGT-7)

Provision

Annual

Penalty

₹100 per day of delay per form with no statutory ceiling

Non-compliance

Director KYC Verification (DIR-3 KYC)

Provision

Annual

Penalty

₹5,000 statutory fee per DIN + deactivation

Common mistakes to avoid

Avoidable filing errors that cause delays or rejection. Each can be resolved before submission.

1
Mismatched applicant legal name or identity details across KYC proofs
Why: Government verification APIs cross-check with UIDAI and MCA databases and automatically flag discrepancies in spelling or dates.
Fix: Our specialists pre-validate your documents against official government databases before portal filing.
2
Submitting outdated utility bills or non-notarized commercial leases
Why: Premises proofs older than 60 days or defective landlord NOCs trigger statutory scrutiny queries and multi-week processing delays.
Fix: We verify recent billing dates and provide pre-formatted, legally vetted landlord NOC and lease formats.
3
Selecting incorrect classification, turnover slab, or statutory activity code
Why: Applications filed under inappropriate classifications attract show-cause notices and potential rejection without statutory fee refund.
Fix: We conduct a statutory scope assessment to align your application with the exact regulatory requirements.

Frequently asked questions

Everything you need to know about this service.

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