Micro and Small Enterprises (MSEs) play a crucial role in India’s economic growth. However, many small business owners struggle with delayed payments and financial disputes. To resolve such issues, the Indian government has established the Micro and Small Enterprise Facilitation Council (MSEFC). This council helps small businesses recover their dues in a legal and structured manner.
In this guide, we will explain everything you need to know about accessing the MSE Facilitation Council, the steps to register a complaint, and how Udyam Registration Online plays a crucial role in this process.
What is the Micro and Small Enterprise Facilitation Council (MSEFC)?
The Micro and Small Enterprise Facilitation Council (MSEFC) is a government body that helps small businesses resolve payment disputes with buyers. It operates under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, which mandates that large buyers must make payments to MSEs within 45 days.
If a buyer delays payment, the MSEFC allows small business owners to file complaints and recover their dues with interest.
Key Benefits of MSEFC
- Provides a legal platform for small businesses to claim delayed payments.
- Ensures faster resolution of disputes.
- Imposes penalties on buyers who delay payments beyond 45 days.
- Encourages fair trade practices.
Who Can Access the MSE Facilitation Council?
Only registered Micro and Small Enterprises (MSEs) can file complaints with MSEFC. This means that businesses must have Udyam Registration to qualify.
What is Udyam Registration?
Udyam Registration is an online government registration system that provides small businesses with a unique identification number. It replaces the previous Udyog Aadhar system and is essential for MSMEs to avail government benefits.
Eligibility for Udyam Registration
- Micro Enterprises: Investment up to Rs. 1 crore & turnover up to Rs. 5 crores.
- Small Enterprises: Investment up to Rs. 10 crores & turnover up to Rs. 50 crores.
To access the Micro and Small Enterprise Facilitation Council (MSEFC), you must first register your business on the Udyam Registration Portal.
How to Register on Udyam Registration Portal?
Registering on the Udyam Registration Portal is simple and free of cost. Follow these steps:
Step 1: Visit the Official Udyam Registration Portal
Go to udyam-registrations.org, which helps businesses complete their Udyam Registration Online.
Step 2: Enter Aadhar Details
Since Udyam Registration requires Aadhaar authentication, provide the Aadhaar number of the business owner or partner.
Step 3: Fill Business Details
- Business Name & Type
- PAN Card Number
- Bank Details
- Investment & Turnover Information
Step 4: Verify & Submit
- Cross-check all the information.
- Submit the application and receive the Udyam Registration Certificate via email.
Once you have your Udyam Registration Certificate, you can approach the MSE Facilitation Council for any payment disputes.
How to File a Complaint with MSE Facilitation Council?
If you are facing payment delays from buyers, you can file a complaint with MSEFC through the MSME Samadhaan Portal.
Step 1: Visit MSME Samadhaan Portal
Go to the official MSME Samadhaan portal and click on “Application Entry”.
Step 2: Login with Udyam Registration Number
Enter your Udyam Registration Number and validate your business details.
Step 3: Provide Payment Details
Fill in the details of the unpaid invoices, including:
- Invoice number and date
- Amount due
- Buyer’s details
Step 4: Submit the Complaint
Once submitted, your complaint will be reviewed by the MSE Facilitation Council, and the buyer will be asked to respond.
What Happens After Filing a Complaint?
- Notification to Buyer: The MSEFC notifies the buyer about the complaint.
- Conciliation Process: Both parties try to settle the dispute amicably.
- Arbitration Process: If conciliation fails, the council initiates legal arbitration.
- Final Decision: The council issues a judgment, and the buyer must pay the dues with interest.
If the buyer refuses to comply, the MSEFC can enforce the payment through legal channels.
Key Benefits of Registering with Udyam-Registrations.org
Many businesses find it difficult to complete the Udyam Registration process on their own. This is where udyam-registrations.org comes in. It provides assistance with:
- Udyam Registration Online
- Udyog Aadhar Registration
- Udyam Aadhar Certificate
- MSME Benefits & Compliance
By using their services, businesses can ensure smooth and error-free registration, making it easier to access government benefits, including MSEFC support.
Frequently Asked Questions (FAQs)
1. What is the time frame for resolving disputes through MSEFC?
The MSEFC aims to resolve disputes within 90 days, but the actual time may vary depending on the case.
2. Can a business without Udyam Registration file a complaint with MSEFC?
No, only businesses with Udyam Registration can access the MSEFC for dispute resolution.
3. What if the buyer refuses to pay even after MSEFC’s decision?
The MSEFC has the authority to enforce payments through legal action.
4. How much interest is charged on delayed payments?
If a buyer delays payment beyond 45 days, they must pay compound interest at three times the bank rate fixed by RBI.
5. Is Udyam Registration mandatory for MSME benefits?
Yes, Udyam Registration is mandatory to avail all MSME benefits, including access to MSEFC.
Final Thoughts
The Micro and Small Enterprise Facilitation Council (MSEFC) is a valuable resource for small businesses struggling with delayed payments. However, to access this facility, businesses must first register under Udyam Registration.
By completing Udyam Registration Online through udyam-registrations.org, businesses can ensure they are eligible for government support and payment dispute resolution.
If you own a Micro or Small Enterprise, don’t wait! Get your Udyam Registration Certificate today and secure your business rights under MSEFC.
