Startup & Business Hub | MSME 45-Day Rule & Registration Guide

Your guide to building a business in Bharat. Understand MSME payment rules, GST limits, and business registration laws.

Know your legal rights under the Constitution of India. This dynamic directory contains verified guidelines, resources, templates, and expert law compliance tools.

  • Business Rights

    Choosing Your Entity

    Law/Section: Companies Act, 2013 / LLP Act, 2008

    How you register your business determines your personal liability and tax benefits.

    Tip: If you are starting alone, consider 'One Person Company' (OPC) for the best of both worlds.

    • Sole Proprietorship: Easiest to start, but you are personally liable for all debts.
    • LLP (Limited Liability Partnership): Good for professionals; your personal assets are protected.
    • Private Limited: Best for scaling and raising funding; most complex to maintain.

  • Business Rights

    MSME 45-Day Rule

    Law/Section: Section 15, MSMED Act 2006

    Protecting small businesses from payment delays by large companies.

    Fact: Even if the contract says '90 days', the MSME Act overrides it and limits it to 45 days.

    • Mandatory Payment: Buyers MUST pay MSMEs within 45 days (if there is a written agreement).
    • Triple Interest: If delayed, the buyer must pay compound interest at 3x the bank rate.
    • MSME Samadhaan: You can file a complaint on the official portal to recover your money.

  • Business Rights

    GST Basics

    Law/Section: Central Goods and Services Tax Act, 2017

    Understanding when you MUST enter the tax net.

    • Registration Limit: Mandatory only if your turnover exceeds Rs 40 Lakh (Goods) or Rs 20 Lakh (Services).
    • Composite Scheme: If turnover is below Rs 1.5 Crore, you can pay a flat tax rate with less paperwork.
    • Input Tax Credit (ITC): You can claim back the tax you paid on business purchases.

  • Business Rights

    Shop & Establishment Act

    Law/Section: State-specific Labor Laws

    The basic rules for every physical shop or small office.

    • Registration: Mandatory for any place where 'trade' is carried out.
    • Working Hours: Sets the rules for opening/closing times and weekly holidays.
    • Employee Rights: Mandates basic facilities like clean water, ventilation, and fire safety.

  • Business Helplines

    MSME Samadhaan

    Contact: Portal

    To recover delayed payments from buyers.

  • Business Helplines

    Startup India

    Contact: 1800-115-565

    For registration and tax exemption queries.