NEW DELHI : The Ministry of Micro, Small, and Medium Enterprises (MSME) is set to host a vital Stakeholder Consultation on reducing compliance burden for MSMEs under the Companies Act, 2013.

This event will take place in hybrid mode on 10th January, 2025 in New Delhi, as well as online.

The consultation will focus on addressing regulatory reforms and proposing amendments to enhance ease of doing business for MSMEs.

With the objective of simplifying compliance requirements under the Companies Act, 2013, the event will bring together key stakeholders, including representatives from the Ministry of MSME, Ministry of Corporate Affairs, MSME industry associations, legal experts, academia, and professionals such as Chartered Accountants and Company Secretaries.

Among the key areas of discussion are the harmonisation of MSME definitions under the Companies Act, 2013, and the MSMED Act of 2006, to create a cohesive policy framework.

Proposals to eliminate filing fees for companies below certain thresholds will also be discussed to encourage startups and small businesses to formalise their operations.

Simplification of statutory audit requirements for micro-enterprises and measures to ease complex processes related to mergers, acquisitions, and business closures will form part of the agenda.

Moreover, the session will emphasise integrating MSMEs into the PM Internship Scheme, an initiative designed to strengthen workforce capabilities and bridge the skill gap.

The Companies Act, 2013, a comprehensive law governing the formation and operation of companies in India, has been pivotal in ensuring corporate transparency and governance.

However, its extensive compliance requirements pose challenges for MSMEs due to their limited resources and infrastructure.

The Background Note accompanying this consultation highlights these challenges while proposing targeted reforms to reduce the compliance burden, ensuring a more supportive regulatory framework for MSMEs.

This consultation aims to build on these insights to drive meaningful policy changes for the sector.