MSME stand for MICRO, SMALL AND MEDIUM ENTERPRISES. These enterprises primarily deal with manufacturing, production and preservation of goods and commodities.
MSME has been classified under different categories based on the investment and annual turnover:
- Micro enterprises; investment not exceeding Rs.1 Crore and annual turnover Rs. 5 Crore respectively.
- Small enterprises; investment not exceeding Rs.10 Crore and annual turnover Rs. 50 Crore respectively.
- Medium enterprises; investment not exceeding Rs.50 Crore and annual turnover Rs. 250 Crore respectively.
With the rise of MSMEs in the financial sector, the rise of payment related disputes were seen. Defaulting in payments by the buyer has caused hardships of these enterprises to grow and run their business operations.
This problem was identified by the government and hence, introduced the MSME ACT 2006.
MSME ACT 2006
The Act primary objective is to protect the MSMEs from defaulting buyer. As per the provision of the MSME Act, the buyer needs to make payment to the MSMEs within the period of forty-five days. Any MSME can approach the Facilitation Council of their respective State Government and present his dispute regarding defaulted payments.
Apart from this, the act focuses on the advancement and development of the MSMEs and to boost their competitiveness.
WHAT WE DO?
With a strong knowledge of MSME Act and guidelines, we help MSMEs to present their dispute before the MSME Facilitation Council.
Our objective is to provide the MSMEs with speedy representation at an affordable price. We understand, the grievances of the MSMEs, hence our prime focus is to get the dispute settled between the parties so that, MSMEs can function smoothly and boost their business operations.
CONCLUSION
Since, the introduction of the Act, many MSME disputes has been settled between the parties. This area of practice has given a new hope to the buyers and confidence to build their business.