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

Under Section 8 of the MSMED Act, 2006 (official text), which person is required, and not merely permitted at his discretion, to file a memorandum for a new enterprise?

A person establishing a medium manufacturing enterprise in a First Schedule industry must file the memorandum. Section 8(1) allows discretion for micro and small enterprises and for medium service enterprises, but clause (c) for medium manufacturing carries no such discretion.

  1. AA person establishing a micro enterprise in manufacturing
  2. BA person establishing a small enterprise in services
  3. CA person establishing a medium enterprise providing services
  4. DA person establishing a medium enterprise manufacturing goods of an industry in the First Schedule to the IDR Act, 1951Correct

Explanation

Section 8(1) gives discretion to those establishing micro or small enterprises and medium service enterprises. For a medium manufacturing enterprise in a First Schedule industry, clause (c) has no discretion wording, so filing is mandatory. The other options all carry the words 'at his discretion'.

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