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

The Central Government wants to notify the form of the memorandum for MSMEs and the procedure for filing it. Under the MSMED Act, 2006, which statement is correct?

The Central Government notifies the form of the memorandum and its filing procedure only after obtaining the recommendations of the Advisory Committee. Authorities specified by the Central and State Governments must then follow that notified procedure, so States cannot set their own forms.

  1. AIt must first obtain the recommendations of the Advisory CommitteeCorrect
  2. BIt may notify the form without consulting any body
  3. CIt must obtain the recommendations of the National Board only after notifying
  4. DIt must leave the form to each State Government

Explanation

Section 8(2) states the form of the memorandum, the filing procedure and incidental matters are as notified by the Central Government after obtaining the Advisory Committee's recommendations. Authorities specified by Central and State Governments must follow that procedure under section 8(5), so leaving it to States is wrong.

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