MSME-1 is the half-yearly return that "specified companies" (companies that receive goods or services from micro and small enterprises and have payments outstanding beyond 45 days from acceptance) must file with the Registrar of Companies under the Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019. It lists each supplier, the amount due and the reasons for delay.
How MSME-1 works in India
Every company (not LLPs or proprietorships) that buys from micro and small enterprises must check its creditor ledger at 30 September and 31 March. If any such supplier has been unpaid for more than 45 days from acceptance, the company is a "specified company" and must file MSME-1 on the MCA portal with supplier-wise details. The filing is signed by a director and certified. The data is available to the Registrar, and the company's auditors cross-check it against the Section 22 disclosure in the financial statements and the Section 43B(h) workings.
Why it matters for getting paid
MSME-1 means a company cannot quietly sit on small-supplier dues. Its name, your name and the amount go to the Registrar twice a year, with a stated reason for the delay. Compliance teams dislike reporting unexplained delays, so a supplier who points out that the invoice will appear in the next MSME-1 (and the Section 22 disclosure) often gets paid before the half-year closes. If the buyer has not been filing, that is a compliance failure your advocate can mention.
How FundRaksha uses it
FundRaksha's notices to corporate buyers reference their MSME-1 and Section 22 obligations alongside the Section 16 interest claim. Buyers who care about their MCA record respond quickly, which contributes to the 60% pre-court settlement rate. The company's 700+ paid clients include many small suppliers to listed companies.
Worked example (hypothetical)
A small Noida electronics supplier is owed ₹12,00,000 by a private limited buyer, accepted on 1 August, PO terms 30 days, so due 31 August. On 30 September the amount has been outstanding 30 days from the due date and 60 days from acceptance, so it must appear in the buyer's MSME-1 for April to September, due by 31 October. Assuming a 6.5% bank rate (19.5% a year, monthly rests), the Section 16 interest from 1 September to 31 October is about ₹39,300. The supplier's advocate writes on 5 October pointing this out; the buyer pays the principal on 25 October to avoid a reported default.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.