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CS Executive · Setting Up of Business, Industrial and Labour Laws · Micro, Small and Medium Enterprises

Before notifying the classification of any class of enterprises under Section 7(1) of the MSMED Act, 2006, what must the Central Government do?

The Central Government must first obtain the recommendations of the Advisory Committee. Section 7(4) makes this a precondition to classifying any class of enterprises. The Facilitation Council and State Governments have no such role in classification.

  1. AObtain the recommendations of the Advisory CommitteeCorrect
  2. BObtain approval of every State Government
  3. CSeek the opinion of the Facilitation Council
  4. DObtain the consent of the associations of micro enterprises

Explanation

Section 7(4) requires the Central Government to obtain the Advisory Committee's recommendations before classifying any class of enterprises. The Facilitation Council under Section 21 is a state-level body and has no role in classification. State approval is not required.

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