Entrepreneur Memorandum-I (EM-I) and Entrepreneur Memorandum-II (EM-II)
 
As per MSMED Act, 2006, a person intends to set up micro, small enterprise, shall file memorandum of micro, small enterprise, as the case may be, with District Industries Centre/Sub-DIC of the concerned district where enterprise will be set up. The system of registration followed so far has been changed w.e.f. 02.10.2006. The District Industries Centre/Sub-DIC of the respective district where the enterprise is situated has been declared as specified authority for micro and small enterprise for acknowledgement, of memorandum. DIC shall issue acknowledgement in the form of E.M. getting duly filled in Entrepreneurship Memorandum complete in all respects with necessary signature and undertaking.
 
Filing of Memorandum has been categorised in two ways i.e. part-l, applicable for setting up of (proposed) micro and small enterprises and part-ll (after commencement of production/services to be rendered of those enterprises).
 
E.M. Part-I
 
It is issued to any class or classes of enterprise whether proprietorship, Hindu undivided family, association of persons, co-operative Society, partnership firm, company or undertaking by whatever name called, intending to establish -

A Micro Enterprise to be engaged either in providing or rendering of services with the investment in equipment not exceeding Rs.10 Lakh or goring for manufacture or production of goods pertaining to any industry with investment in Plant & Machinery not exceeding Rs.25 Lakh.

A Small Enterprise to be engaged either in providing or rendering of services with the investment in equipment more than Rs.10 Lakh but does not exceed Rs.2 Crore or going for manufacture or production of goods pertaining to any industry with investment in Plant & Machinery more than Rs.25 Lakh but does not exceed Rs.5 Crore.

Authorised persons of the proposed enterprises will fill up Memorandum Form supplied free of cost (part-l) as per direction given in the computerised form along with the documents to be submitted and the same (in three copies for micro, small enterprises) will submit to the concerned District Industries Centre/Sub-DIC.

The EM-I Form contain 18 columns to be filled up by the unit. There is no fee for processing the memorandum. Existing units should fill up only Part-ll of the Memorandum In case of any change, in the information provided in the Memorandum Form, at any point of time, the enierprise should inform the details within three months to DICs.

On scrutiny the information provided by the enterprise in the appropriate. boxes of the form along with documents submitted, the General Manager, District Industries Centre will issue acknowledgement to the enterprise in prescribed form. This acknowledgement (EM-I) is valid for a period of two years from the date of issue.

Within this period all preliminary steps to be taken before commencement of production /services to be rendered in the category of micro and small enterprises.
 
E.M. Part-II
 
  1. Once the above enterprises start production or providing or rendering services shall file Part-ll of the Entrepreneurs Memorandum to District Industries Centre/Sub-DIC in the proper Form supplied free of cost.
  2. Those enterprises having already gone in production or provide or render service file EM Part-ll directly .
MSMED's Policy Cell generally maintains liaison with DICs, Deptt. of Micro & Small Enterprises & Textiles and D.C.(SSl), Govt, of India to get clarified the points pertaining to MSMED Act raised by DICs and other concerned authorities.

The enterprise will fill up Memorandum Part-ll as per direction given in the form. The enterprise will have to enclose a self certified copy of power of attorney/ Board resolution/ society resolution/ article of memorandum in case of private company/ private limited company etc., wherever applicable, while signing as partner/ Managing Director or authorised persons and a certified/ notarised copy of the partnership deed/ co-operative registration etc. will have to be enclosed along with Entrepreneurs Memorandum Part-ll. On scrutiny of the EM Part-ll form along with the relevant documents enclosed, the General Manager, District industries Centre after filling up the relevant codes in the forms (viz. NIC 2004 and ASICC 2000 and other relevant codes) will issue acknowledgement of EM Part-ll to the enterprise. EM Part-ll Form contains 21 columns to be filled up by the unit and the Acknowledgement contains 9 columns to be filled.

The issue of this Acknowledgement does not bestow a legal right. The enterprise is required to seek requisite clearance/ License/ Permit required under statutory obligation under the laws of Central Government/ State Government/ Court orders.
 
Benefits of EM-I
 
The acknowledgement (EM Part-l) thus received will be beneficial to the enterprise to approach different local bodies/authorities to get clearances required under existing Act and rules so that the unit may come up for either production or services to be rendered. So, to have acknowledgement of EM Part-I the preliminary steps for setting up the Enterprise may be taken up. The following authorities may be contacted for desired benefits -

  1. No objection certificate to be obtained for setting up micro, small in an area free to set up enterprise from Gram Panchayat/ Panchayat Samrty/ Local Bodies (for Municipality).
  2. Pollution consent to establish to be obtained from either from District Industries Centres/ District Pollution Control Board/ State Pollution Control Board, depending upon type of pollution to be created by the enterprise.
  3. Water connection from the Local Bodies.
  4. Purchase of the land and registration of the land with Additional Registrar of the concerned district.
  5. Construction of the factory premises as per approved plan from the end of Local Bodies/ Gram Panchayat/ Panchayat Samity.
  6. In case of rented premises the Agreement Bond with the owner of the premises and the enterprise will have to be executed for monthly rent/ Power consumption, if any. For setting up enterprise in the domestic area of the owner of the enterprise, No objection certificate may be pursued from Local Bodies etc.
  7. For getting power connection from WBSEB/CESC, application for power is to be submitted to the concerned office.
  8. For financial assistance from Commercial Banks/ WBFC/ SIDBI etc. for Term Loan/ Working Capital Loan the enterprise is to approach the concerned Bank/ WBFC with approved Scheme from DIC/ MSME-DI.
  9. Approach the manufacturer of Plant & Machinery/equipments for installation of the desired Plant & Machinery as per approved plan.
 
Benefits of EM-II
 
On getting the acknowledgement of the EM-II the enterprise will continue in production/ providing or rendering services, the enterprise may get the benefit from the different authorities as stated below -

  1. The existing Incentive/ Subsidy, 2007 may be attracted for various benefits like State Capital Investment Subsidy, Interest Subsidy, Incentive for generation of employment, Waiver of Electricity Duty, Subsidy of energy charges, refund of Stamp Duty and Registration fee etc.
  2. Financial assistance for modernisation/ expansion programme from Commercial Bank/ WBFC/ SIDBI may be pursued from concerned Bank/ WBFC/ SIDBI on the Scheme from DIC/ MSME-DI.
  3. Participation in District level/ State level/ National level exhibition and even in foreign exhibition.
  4. Participation in DGS&SD rate contract programme.
  5. Single point registration with NS1C for marketing products and services may be done for the benefit of the enterprise in the continued marketing channel.
  6. In case of Delayed Payments to Micro & Small Enterprises reference to Micro & Small Enterprises Facilitation Council may be made to mitigate the problem being faced by the enterprise.
  7. Handicrafts artisans having EM-II acknowledgement may get the Monthly pension & Identity Card as per Schemes of Govt, of W.B.
 
 
 
 
 
 
 
 
 
 
Report on EM-II
for 2011-12
Upto October 2011
 
 
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