The MSME (Micro, Small, and Medium Enterprises) sector has received a lot of attention in the past few years. Given the importance of small businesses to an economy, the diversity they provide, and the employment they generate, the attention is justified. Many would argue that MSMEs form the backbone of an economy. They help people with a desire for independence and ownership set up their small units and become employment generators instead of employment seekers. Such businesses which set up in small towns also help cap migration of people to large cities to seek jobs.
But regardless of the importance of any sector, it has to be regulated and that is the case with MSME as well. The MSME Act 2006 applies to such businesses. If your business operates in that arena, there are a few regulations that you need to be mindful of.
Registration of a business may be optional, and some promoters choose not to get theirs registered, to avoid the burden of compliance. But registered enterprises receive a host of benefits in the form of government schemes which offer easy access to capital and tax rebates, among others.
If your MSME is registered as a company, then the Companies Act requires you to hold a board meeting every three months and an Annual General Meeting (AGM). You have to file an Annual Return in the MGT-7 form and file with the Registrar within two months of the AGM. Similarly, you have to file the financial statement, MSME and DPT-3 Returns (if applicable), and Director’s KYC, among other requirements. The dates of all these filings may vary and may be spread throughout a year.
If your MSME has been incorporated as an LLP, you have to file the LLP agreement within a month of incorporation. You have to also file the LLP Annual Return form, LLP financials, and audit of accounts (if applicable).
These are just a few of the regulations that apply to MSMEs. This shows that regardless of the size of a business, there are several compliance requirements that need to be fulfilled – requirements that cannot be taken lightly.
Given the paucity of time for owners of these small businesses, the plethora of compliances may seem overwhelming. These worries can be alleviated greatly by a tool that helps out with such compliances.
Boston Financial Advisory Group’s COMPLIANCE iNBOX (CiB) is a powerful tool that can help small businesses with exactly that. It is highly customizable with an informative dashboard, is quite easy to use, and does not require the intervention of any IT personnel to operate. Given that cost is a major issue for small businesses, this 100% SaaS-based tool does not require any expensive hardware or software – a big plus. These features, among a host of others, could come in very handy for MSMEs which do not have the time or the money to buy expensive and technical compliance solutions.
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