Global Solutions Pvt. Ltd.
Introducing the MSME Vendor Status Check by Figmentglobal. Determine the MSME status of your company’s vendors and ensure compliance with MSME Form 1 regulations.
Supply your PAN to verify whether your vendor is classified as an MSME.
Submit your PAN to retrieve the MSME number linked to a vendor.
Verify the validity of MSME numbers provided by your vendors.
Verifying the MSME status of your vendors not only ensures compliance but also protects your company’s reputation and integrity. Align effortlessly with CARO declaration and bi-annual MSME Form 1 filings, ensuring transparency and ethical business operations.
Forge stronger, enduring business connections by identifying the MSME status of your vendors, enabling you to seamlessly offer them the benefits they deserve. Whether it’s prompt payment releases or favorable credit terms, demonstrate your vendors that you prioritize their welfare. In a competitive market, distinguish yourself as a conscientious business that esteems its collaborators.
Having financial foresight is imperative for achieving business success. Our MSME vendor status check protects you from the consequences of late payments, such as detrimental penalties and fines. Moreover, safeguard your company’s esteemed reputation within the business community. With our proactive MSME verification, stay informed, strategically plan your finances, and guarantee seamless, penalty-free operations.
Indian regulatory compliance mandates that businesses biannually declare their dues to MSMEs through MSME Form 1, with non-compliance resulting in substantial penalties, including fines and potential imprisonment.
The recent amendment by the Finance Act, 2023, further emphasizes the importance of timely payments to MSME vendors, as any delay can disallow the expense under Income tax laws, affecting the company’s tax liabilities. Additionally, annual CARO filings require auditors to report on outstanding payments to MSMEs, making accurate identification and reporting crucial.
From a financial standpoint, delays in payments to MSMEs require businesses to provision for interest in their balance sheets, potentially straining their financial health. Operationally, understanding the MSME status helps businesses ensure their vendors receive the rightful benefits, fostering stronger vendor relationships.
Figment offers an MSME status check and verification service that aids businesses in swiftly and accurately verifying the MSME registration status of their third-party vendors. Our service presents a straightforward, user-friendly, and economical solution engineered to enhance the efficiency of the MSME status verification process.
Input the PAN details linked to your vendors to verify their MSME status. For bulk PAN numbers, you can furnish us with a CSV file containing the PAN numbers for verification.
Udyam/Udyog number of the enterprise
A list of enterprise types and their classification details
Name of the District Industries Center (DIC)
Name of Enterprise
Social Category
Date of Commencement
State in which the enterprise is registered
Mobile number of the enterprise's authorized representative
Email ID of the enterprise's authorized representative
Type of organization (proprietorship/partnership/private limited/public limited)
Details of the National Industrial Classification (NIC) codes applicable to the enterprise
Detailed Address of the Enterprise(incl Flat number, Name of the Building, Road, Village, Block, City, PIN Code)
Date on which the application for Udyam registration was applied
Location of Plant Details
Major Activity
MSME Form 1 is a semi-annual return that certain companies are mandated to submit concerning their outstanding dues to Micro and Small Enterprises (MSMEs). These specified companies are those defined in Section 9 of the Micro, Small and Medium Enterprises Development Act, 2006. The filing deadline for this form is within 30 days from the deployment date of E-form MSME-1 on the MCA Portal.
Companies must ascertain whether their suppliers are registered under the MSME Act, 2006. If the suppliers are registered under this Act and there are outstanding dues owed by a company to these MSME suppliers, the company must submit Form MSME-1. Specified companies are required to submit Form MSME-1 when payments to MSMEs are overdue by more than 45 days from the date of accepting the services or goods, along with an explanation for the delay.
Utilize Figment to verify the MSME status of your vendor by providing their PAN details. Upon completion of the check, you will receive information such as whether your vendor is registered as an MSME, the specific category of MSME they belong to, the UAM number linked to the registered MSME vendors, and various other details.
For filing MSME Form 1, companies must comply with the following deadlines:
From Apr to Sep: The form must be filed by 31st Oct.
From Oct to Mar: The form must be filed by 30th Apr
Adherence to the specified timelines for filing the form is crucial for companies to maintain compliance with regulations. Failure to comply with filing MSME Form 1 may result in penalties as per Section 405(4) of the Companies Act, 2013.
When payments to Micro and Small Enterprises (MSME) vendors are delayed, companies may face penalties and consequences. These penalties include:
In instances of delayed payments, companies are responsible for paying interest on overdue payments to MSME registered suppliers. The interest rate is three times the bank rate notified by the Reserve Bank of India.
Should a company submit MSME Form 1 after the due date or neglect to file it, the company is subject to a penalty under Section 450 of the Companies Act, 2013.
The company and each defaulting officer will face a penalty of Rs. 25,000. For persistent non-compliance, an additional penalty of Rs. 500 per day will be levied.
