Preface

In recent years, the Micro, Small, and Medium enterprise (MSME) sector in India has grown at an unprecedented rate and it has become a major contributor to the country's economy, providing employment opportunities to millions of people and driving innovation and growth. The government has also been actively promoting the growth of MSMEs and startups, recognizing their role in the country's development. With the rise of the startup ecosystem, more and more entrepreneurs are looking to establish their own businesses, creating jobs and driving economic growth. This book, delves into the world of MSMEs and startups in India, exploring the challenges and opportunities that these businesses face. From basic concepts to Registrations, from funding to regulations, this book provides a comprehensive overview of the Indian MSME and startup landscape.

This book is a comprehensive guide to understanding and navigating the realm of MSMEs and Startups in India.

In Part I of this Book, we provide an overview of MSMEs and important terminologies, as well as information on classification and re-classification of MSMEs. Part II delves into the differences between business organizations and MSMEs, while Part III covers the registration process for MSMEs, including Udyam registration and other licenses.

In Part IV, we discuss the various benefits available to MSMEs, such as protection against delayed payments, Trade Receivables, Discounting Systems, and Public Procurement Policy. This Book, in addition, covers Loans and restructuring of advances available to MSMEs.

Part V provides an in-depth look at the different schemes available for MSMEs, ministry-wise. It cover schemes from the Ministry of MSME, Agriculture, Chemicals and Fertilizers, Communication and Information Technology, Culture, Finance, Food Processing, Housing and Urban Poverty Alleviation, Rural Development, Science and Technology, Social Justice, Textiles, Tourism, Tribal Affairs, Urban Development, Women and Child Development, Commerce and Industry.

Part VI focuses on StartUps, including definitions, coverage, eligible business entities and registration under the Startup India programme. Part VII provides detailed information on the formation of business entities and registration for startups, as well as other licenses and permits.

In Part VIII, we answer frequently asked questions about the Startup India programme.

Part IX includes information on self-certification under Environmental and Labour laws, easing public procurement, intellectual property rights support, and fast track exit for startups. Fund of Funds Scheme for startups and the Startup India Hub has also been discussed.

Part X, XI and XII respectively covers MSMEs and Start ups vis-a-vis Companies Act, Income Tax Act and GST Laws. Lastly, Part XIII examines the relationship between MSMEs and the Insolvency and Bankruptcy Code. Part XIV provides for the MSME Act and related Rules.

The Finance Act 2023 has inserted a new clause (h) in section 43B w.e.f. assessment year 2024-25 in order to promote timely payments to micro and small enterprises. In fact the real implication of this new provision is being observed now-a-days when the first financial year after the insertion of this provision is ending. If buyers fail to make payment to micro and small suppliers within due date specified in section 15 of MEMED Act 2006, the disallowance will get attracted. In our present economy a large chunk of suppliers are micro and small enterprises hence this provision is going to impact all assessees who buy goods or obtain services from such enterprises. In these days a lot of queries are being raised regarding applicability of section 43B(h) under various circumstances. Looking at the importance of this provision in current scenario, we decided to incorporate a new chapter dealing in detail the applicability and implications of section 43B(h). For being an afterthought when the book has already been printed, we have inserted this new chapter as a zeroth chapter in the beginning of book. We hope this will be useful for our readers in arriving at solution of several queries regarding applicability of section 43B(h).

This book is an essential resource for anyone involved in or interested in understanding the MSME and startup ecosystem in India. It provides a thorough understanding of the laws, regulations, and policies that govern the sector, as well as the various schemes and benefits available to MSMEs and startups. With its clear and concise language, this book is useful to both experts and lay persons alike.

We hope that it will serve as a valuable resource for Chartered Accountants, Company Secretaries, Entrepreneurs, Policymakers, and anyone interested in understanding the dynamics of this crucial sector.

14 FEBRUARY, 2024	--CS Amit Baxi
JODHPUR	--CA Nisha Bhandari
BASANT PANCHAMI	--CA Satyadev Purohit