The MSMED Act
What Every Small Business Owner Should Know
From classification to delayed-payment protection, the MSMED Act is the single most important law for Indian MSMEs.
Classification
From classification to delayed-payment protection, the MSMED Act is the single most important law for Indian MSMEs.
Under the MSMED Act, enterprises are classified as Micro, Small or Medium based on investment in plant and machinery and annual turnover. These thresholds have been revised over time.
In This Guide
Delayed payment protection
Section 15–17 of the Act mandates payment to MSMEs within a stipulated period; interest at RBI rate compounded monthly is payable on delayed amounts.
Why this matters
A well-drafted invoice plus a Udyam registration plus a Section 15 notice is one of the most effective collection tools available to Indian MSMEs.
Highlights
Classification
- •Under the MSMED Act, enterprises are classified as Micro, Small or Medium based on investment in plant and machinery and annual turnover. These thresholds have been revised over time.
Delayed payment protection
- •Section 15–17 of the Act mandates payment to MSMEs within a stipulated period; interest at RBI rate compounded monthly is payable on delayed amounts.
Why this matters
- •A well-drafted invoice plus a Udyam registration plus a Section 15 notice is one of the most effective collection tools available to Indian MSMEs.
How Info Tree Services Helps
Info Tree helps founders navigate The MSMED Act and related funding routes:
- Free eligibility check to identify the schemes and grants your business qualifies for.
- Application support including documentation, project summaries, and milestone planning.
- End-to-end assistance from scheme selection through submission and follow-up.
Info Tree's Role in Your Funding Journey
From eligibility check to application filing, Info Tree supports you at every step:
- Map your business to the right funding route for your stage and sector.
- Prepare application documents aligned with reviewer expectations.
- Track submissions and support post-approval compliance where needed.
Conclusion
A well-drafted invoice plus a Udyam registration plus a Section 15 notice is one of the most effective collection tools available to Indian MSMEs.
- Related topic: MSMED
- Related topic: law