{"id":50541,"date":"2024-05-13T15:50:39","date_gmt":"2024-05-13T10:20:39","guid":{"rendered":"https:\/\/www.cagmc.com\/blog\/?p=50541"},"modified":"2024-05-31T15:51:51","modified_gmt":"2024-05-31T10:21:51","slug":"non-filing-or-delay-in-filing-of-msme-form-1","status":"publish","type":"post","link":"https:\/\/www.cagmc.com\/blog\/non-filing-or-delay-in-filing-of-msme-form-1\/","title":{"rendered":"Consequences of Non-Filing or Delayed Filing of  Form MSME-1"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-51372\" src=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2024\/05\/Consequences-of-Non-Filing-or-Delayed-Filing-of-Form-MSME-1.png\" alt=\"\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2024\/05\/Consequences-of-Non-Filing-or-Delayed-Filing-of-Form-MSME-1.png 1200w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2024\/05\/Consequences-of-Non-Filing-or-Delayed-Filing-of-Form-MSME-1-300x158.png 300w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2024\/05\/Consequences-of-Non-Filing-or-Delayed-Filing-of-Form-MSME-1-1024x538.png 1024w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2024\/05\/Consequences-of-Non-Filing-or-Delayed-Filing-of-Form-MSME-1-768x403.png 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p>In the dynamic of business operations, compliance as per regulatory needs stands as a basis for stability and sustainable development. Among these significant performances for <a href=\"https:\/\/msme.gov.in\/\" target=\"_blank\" rel=\"noopener\">Micro, Small, and Medium Enterprises (MSMEs)<\/a> in various jurisdictions of <strong>MSME form 1 filing<\/strong>. It is a compulsory disclosure document whose purpose is to capture significant data about outstanding dues to MSME suppliers. However, despite having crucial compliance filing needs often leads to delay or non-filing. Thus, here we are to be aware of the consequences of non-filing or delay in filing of <a href=\"https:\/\/www.cagmc.com\/msme-form-1\/\" target=\"_blank\" rel=\"noopener\"><strong>MSME form 1<\/strong><\/a>.<\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\"><strong>Table of Content<\/strong><\/p>\n<ul>\n<li><a href=\"#extractoflaw\">Extract of Law<\/a><\/li>\n<li><a href=\"#consequences\">Consequences of non-filing\/ delay in filing of MSME form 1<\/a><\/li>\n<li><a href=\"#adjudication\">Adjudication notice by Registrar of Companies<\/a><\/li>\n<li><a href=\"#endnotes\">End Notes<\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"extractoflaw\">Extract of Law<\/h2>\n<p>As per the provision of section 450 of the Companies Act, 2013 an individual, a company, or any officer contravenes the said section provisions or rules made thereunder, or condition, restriction or limitation leads to which any permission, consent, sanction. Identification, confirmation, exemption, or direction in any case has been provided, and for which no punishment or penalty is mentioned elsewhere in the act. In case any company, an individual, or any officer may commit, then they are liable to pay a penalty, which will be discussed further.<\/p>\n<h2><a href=\"https:\/\/www.cagmc.com\/consequences-of-non-filing-delayed-filing-of-msme-1\/\" target=\"_blank\" rel=\"noopener\"><strong>Consequences of non-filing\/ delay in filing of MSME Form 1<\/strong><\/a><\/h2>\n<p>The provision of section 405 of the Companies Act, 2013 introduces a <a href=\"https:\/\/www.mca.gov.in\/MinistryV2\/companyformsdownload.html\" target=\"_blank\" rel=\"noopener\"><strong>MSME form<\/strong><\/a><strong> 1 filing<\/strong> by using the Central government power. In the mentioned section, there is no penalties\/fines are mentioned. If there is no penalty mentioned then the penalty will be levied as per provisions of <a href=\"https:\/\/www.mca.gov.in\/Ministry\/pdf\/CompaniesAct2013.pdf\" target=\"_blank\" rel=\"noopener\">section 450 of the Companies Act, 2013.<\/a><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><strong>Consequences in terms of penalty:<\/strong>\n<ol>\n<li><strong>Penalty on Director: <\/strong>If an individual or any officer is in default then there will be 50,000 rs of penalty.<\/li>\n<li><strong>Penalty on Company: <\/strong>The penalty will be 10,000 Rs., and if constant contravention, with an additional penalty of 1,000 Rs. for each day after the first at which the contravention exists. Then the maximum penalty will be Rs. 2 Lakhs.<\/li>\n<\/ol>\n<\/li>\n<li><strong>Consequences in Additional fees: <\/strong>To file an e-form of <strong>MSME form 1<\/strong>, there are no prescribed fees. It is filed with the ROC with NIL fees. In addition, CG has not mentioned any further fees on the <strong>MSME form 1<\/strong>. Thus, in case a company has filed its <strong>MSME form 1<\/strong> after the due date, then no need to pay extra fees.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 id=\"adjudication\">Adjudication notice by Registrar of Companies<\/h2>\n<p>In case a <strong>MSME form 1 filing<\/strong> by the Company, but after the <strong>MSME form 1 due date<\/strong> or fails to comply, then legally company is liable for penalty as per section 450 of the Companies Act, 2013. The Section defines the <a href=\"https:\/\/www.cagmc.com\/registration-of-charges-with-roc\/\">ROC<\/a> as having the power to grant a notice of adjudication to the Company. The ROC cannot reduce the penalty, which is below the minimum penalty.<\/p>\n<h2 id=\"endnotes\">End Notes<\/h2>\n<p>At last, we can say that the ramifications of delaying or neglecting the <strong>MSME Form 1 filing<\/strong> can be far-reaching for enterprises. From the legal repercussions to the loss of statutory benefits, the consequences underline the significance of timely compliance in the <strong>MSME form 1<\/strong> field. While the timely file the compliances not only accomplished the regulations but also led to stability and trust within the business system. As we see the <a href=\"https:\/\/www.legalwindow.in\/msme-compliances\/\" target=\"_blank\" rel=\"noopener\"><strong>MSME form 1<\/strong><\/a> has played a significant role in driving economic development, and enterprises must prioritize timely filing to protect their interests and contributions to thrive in the entrepreneurial landscape.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the dynamic of business operations, compliance as per regulatory needs stands as a basis for stability and sustainable development. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":51372,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[73],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>non-filing or delay in filing of MSME form 1- Goyal Mangal &amp; Company<\/title>\n<meta name=\"description\" content=\"Learn risks of non-filing or delay in filing of MSME form 1. 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