The Kerala MSME facilitation Act 2019

Regn.No. KERBIL/20 12/45073 dated 05-09-2012 with RN!

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Reg No. KL/TV(N)/634/202 1-2023

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In section 4 of the principal Act, for the words "and receipt of acknowledgment or where deemed acknowledgment is issued", the words "and receipt of certificate of registration or where deemed certificate of registration is issued" shall be substituted. In the preamble of the principal Act, after the words "micro small and medium enterprises", the words "and to grant approval to other enterprises in a time bound manner" shall be inserted.

In sub-section (1) of section 5 of the principal Act, for the words "the Kerala Micro Small and Medium Enterprises Facilitation Act, 2019", the words "the Kerala Micro Small and Medium Enterprises Facilitation Act, 2019 to obtain certificate of registration" shall be substituted.

In section 6 of the principal Act, (i) for the words "an acknowledgment for the filing of the declaration", the words "a certificate of registration" shall be substituted; (ii) for the words "issue an acknowledgment", the words "issue a certificate of registration" shall be substituted; (iii) for the words "acknowledgment", the words "certificate of registration" shall be substituted; (iv) for the words "the Kerala Micro Small and Medium Enterprises Facilitation Act, 2019", the words "the Kerala Micro Small and Medium Enterprises Facilitation Act, 2019" shall be substituted. In the principal Act, in section 2, (i) in clause (c), after the words "micro small and medium enterprises" the words "and other enterprises" shall be inserted; (ii) after clause (c) the following clauses shall be inserted, namely: (ca) "Bureau" means 'Investment Facilitation Bureau' constituted under section 6A; (cb) "checklist" means list of documents, as may be prescribed, to be furnished by other enterprises along with composite application;"; (iii) after clause (j), the following clause shall be inserted, namely: "(ja) "other enterprise" means an enterprise as defined in clause (da) of section 2 of the Kerala Industrial Single Window Clearance Boards and Industrial Township Area Development Act, 1999 (5 of 2000) and shall not include the Micro Small and Medium Enterprises;".

For section 6 of the principal Act, the following section shall be substituted, namely:— "6. Acknowledgment of application and effect of such acknowledgment.—(1) Any person who intends to start a Micro, Small or Medium Enterprise in the State may submit a self-declaration in such form and manner as may be prescribed, to the Nodal Agency as per the Kerala Micro Small and Medium Enterprises Facilitation Act, 2019. (2) The Nodal Agency shall, on receipt of the self-declaration, issue a certificate of registration in such form and manner, within such time and in such condition as may be prescribed. (3) The certificate issued under sub-section (2) shall be valid for a period of five years. (4) Notwithstanding anything contained in any other law for the time being in force, the applicant shall be entitled to start the Micro, Small or Medium Enterprise after the receipt of the certificate of registration or after the expiry of the period specified in sub-section (2), if the Nodal Agency does not issue the certificate of registration within the said period, and it shall be lawful for the applicant to commence the business operations using the self-declaration and the receipt of the application, as the case may be, in accordance with the provisions of this Act: Provided that, such person shall obtain the required clearances and licenses, if any, required under any other law for the time being in force, for the operation of the enterprise, within a period of five years from the date of commencement of the business operations or within such further period as may be specified by the Government, as the case may be: Provided further that, nothing in this section shall be construed as a permission to start or operate any enterprise which is prohibited under any other law for the time being in force: Provided also that, the applicant shall comply with the conditions specified in the Kerala Micro Small and Medium Enterprises Facilitation Act, 2019 in respect of the enterprise." In the principal Act, after section 6, the following sections shall be inserted, namely: "6A. constitution of Investment Facilitation Bureau.—(1) For the purpose of disposal of applications for the issue of various approvals required under the State enactments for setting up other enterprises in the State in a time bound manner, the Government may, by notification, constitute a Bureau to be called 'Investment Facilitation Bureau' consisting of the following members, namely: (a) Secretary in charge of Investment Promotion in the Industries Department; (b) Director General, Fire and Rescue Services; (c) Managing Director, Kerala State Industrial Development Corporation; (d) Chief Town Planner; (e) Labour Commissioner; (f) Director, Factories and Boilers Department; (g) Chief Electrical Inspector; (h) Additional Director, Health Services; (i) Director, Urban Affairs Directorate; (j) Director, Panchayat Directorate; (k) Industries and Commerce Director; (l) Secretary or Director of the Department as may be nominated by the Chairman of the Bureau, as he deems fit. (2) The Bureau shall be a body corporate by the name aforesaid having perpetual succession and common seal. (3) Secretary in charge of Investment promotion in the Department of Industries shall be the Chairman, and the Managing Director of the Kerala State Industrial Development Corporation shall be the Convenor and Chief Executive Officer of the Bureau. (4) Bureau shall meet at such time and place as fixed by the Chairman, for performing the functions of the Bureau under the Act and shall follow such rules of procedure as may be prescribed in regard to its transaction of business. 6B. Powers and functions of Bureau.—(1) Notwithstanding anything contained in any other law for the time being in force, without prejudice to the powers conferred on the State Board and District Board constituted under the Kerala Industrial Single Window Clearance Boards and Industrial Township Area Development Act, 1999 (5 of 2000), any person who intends to set up other enterprises, shall submit a composite application to the Chief Executive Officer through online portal for the issuance of approval as required under State enactments for setting up such enterprises in such form along with such fees and such declaration, as may be prescribed. (2) The Bureau shall after complying the procedure prescribed in this behalf and within seven working days after the receipt of a composite application which is complete in all respect, take a decision as,— (a) to issue approval on such conditions, as it may think fit; or (b) to call for more details of documents, it deemed necessary for taking action on the application. (3) The decision of the Bureau shall be informed to the applicant and to the competent authority concerned, by the Chief Executive Officer and the said decision shall be deemed to be given by the competent authority concerned and such decision shall be binding on the authorities. (4) An approval once granted shall have effect for a period of five years from the date of its issuance and within one year from the date of such approval, every 'other enterprise' shall submit a certificate in such form as may be prescribed, to the Chief Executive Officer to the effect that, all the provisions of the Act and rules concerned are complied with and in such cases where the renewal of approval is required, an application for renewal of such approval shall be submitted to the Chief Executive Officer through online along with required documents, before three months from the date on which such approval shall cease to operate, and thereupon it shall be renewed in such manner, as may be prescribed. (5) During the period of one year as specified in sub-section (4), competent authority shall not undertake any inspection for the purpose of, or in connection with any approval as defined in clause (c) of section (2): Provided that a competent authority may undertake inspection to verify that, the provisions of the Act and rules as specified in the certificate submitted to the Chief Executive Officer are complied with. (6) If the other enterprise fails to comply with the provisions of the Act and rules and also to submit a certificate to the effect that the provisions of Act and rules are complied within one year as specified under sub-section (4), the Bureau may, on request of the applicant and on sufficient reasons, grant a reasonable time not exceeding one year for compliance, taking into account the nature of the other enterprise and reasons for non-compliance. If the other enterprise fails to comply with the provisions of Acts and rules even after such extended period, the Bureau may revoke the approval, after giving notice to the applicant and after considering the submission if any, from the applicant. (7) The application to be submitted to the Bureau and procedures to be followed by the Bureau for the issuance of the approval shall be, in such manner as may be prescribed. (8) The approval shall not entitle a person to use any land contrary to the provisions contained in the Kerala Conservation of Paddy Land and Wetland Act, 2008 (28 of 2008) and rules made thereunder and it shall not entitle a person to use the land in deviation to the land use specified in the Master Plan notified under the Kerala Town and Country Planning Act, 2016 (9 of 2016). (9) Approval once granted by the Bureau may be used as a valid document for any purpose including availing of financial assistance from a Bank or other financial institution. 6C. Application for the grant of Approval.—(1) Any person who intends to set up other enterprise other than those included as 'Red Category' by the State Pollution Control Board may submit a composite application in such form as may be prescribed, through online portal along with supporting documents and check list and such fees and declaration, as may be prescribed to the Chief Executive Officer of the Bureau. (2) The convenor of the State Board constituted under the Kerala Industrial Single Window Clearance Boards and Industrial Township Area Development Act, 1999 (5 of 2000) shall act as the Chief Executive Officer of the Bureau, to co-ordinate the activities of the Bureau and to scrutinize the applications received from the enterprises under section 6C and for the performance of such functions that may be assigned to him by the Bureau, from time to time. The officers and staff of the Kerala Investment Promotion and Facilitation Cell functioning under the Kerala State Industrial Development Corporation shall provide all necessary assistance to him. Explanation - The Kerala Investment Promotion and Facilitation Cell' means the Cell constituted as per G.O (Ms.) No. 100/2017/Ind. dated 12th October, 2017. (3) The Chief Executive Officer shall, discharge the following powers and functions in addition to the general powers conferred under sub-section (2), namely: (a) to act as a single point contact for 'other enterprises' that require approval from the Bureau; (b) to assist the applicants for completing the composite applications; (c) to scrutinize the applications with the help of check list and to verify the documents submitted along with the application; (d) after completing the scrutiny of the applications,—"

1. (1) Notwithstanding at ything contained in any other law for the tirne.being in force, without prejudice to the powers cenferred on the State Board and District Board constituted under the Kerala Industrial Single Window Clearance Boards and Industrial Township Area Development Act, 1999 (5 of 2000), any person who• intends to set up other enterprises, shall submit a composite application to the Chief Executive Officer through online portal fr the issuance of approval as required under State enactrnents for setting up such enterprises in such form along with such fees and such declaration, as may be prescribed
2. (2) The Bureau shall after complying the procedure prescribd in this behalf and within seven working clays after the receipt of a composite application whih is complete in all respect, take a decision as,— •
   • • (a) to issue approval on such conditions, as itmay think fit; or.
   • (b) to call for more details of documents, it deemed necessary for taking action on the application This is a digitally signed Gazette.

Authenticitymaybeverifiedthroughhltps://cornpose.kerala.gov.in/ .'.

1. (3) The decision of the Bureau shall be informed to the applicant and to the competent authority concerned, by the Chief Executive Officer and the said decision shall be deemed to be given by the competent authority concerned and such decision shall be binding on the authorities. .

4 (4) An approval once granted shall have effect for a period of five years from the date of its issuance and within one year from the date of such approval, every 'other enterprise' shall submit a certificate in, such form as may be prescribed, to the Chief Executive Officer to the effect that, all the provisions of the Act and rules concerned are complied with and in such cases where the renewal of approval is requited, an applieation for renewal of such approval shall be submitted to the Chief Executive Officer through onJine along with required documents, before three months from the date on which such approval shall cease to operate, and thereupon it shall be renewed in such manner, as may be prescribed.

During the period of one year as specified in sub-section (4),. competent authority shall not undertake any inspection for the purpose of, or in connection with any approval as defined in clause (c) of section (2):

Provided that a competent authority may undertake inspection to verify that, the provisions of the Act and rules as specified in the certificate submitted to the Chief Executive Officer are complied with.

If the, other enterprise fails to comply with the provisions of the Act and rules and also to submit a certificate to the effect that the provisions of Act and rules are complied within one year as specified under sub-section (4), the Bureau may, on request of the applicant and on sufficient reasons, grant a reasonable time not exceeding one year for compliance, taking into account the nature of the other enterprise and reasons for non-compliance. If the other enterprise fails to comply with the provisions of Acts and rules even after such extended period, the Bureau may revoke the approval,, after giving notice to the applicant and after considering the submission if any, from the applicant.

The application to be submitted to the Bureau and procedures to be followed by the Bureau for the issuance of the approval shall be, in such manner as may be prescribed.

The appr6valshall not entitle a persontouse any land contrary to the provisions contained in the Kerala Conservation of Paddy Land and Wetland Act, 2008

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(28 of. 2008) and rules made thereunder and it shall not entitle a person to use the land in deviation to the land use specified in the Master Plan notified under he Kerala Town and Country Planning Act, 2016(9 of 2016).

1. (9) Approval once granted by the Bureau may be 'used as a valid document for any purpose includirg aVailing of financial assistance from a Bank or other financial institution.

1. (1) Any person who intends to set up other enterpiise other than those included as Red Category' by the State Pollution Contiol Board may submit a composite application in such form as may be prescribed, through.'online portal along with supporting. documents and check list and such fees and declaration, as may be prescribed to the Chief Executive Officer 'of the Bureau. The convenor of the State Board constituted under he Kerala Industrial Single Window Clearance Boards and Industrial Township Area Development Act, 1999 (5 of 2000) shall act as the Chief Executive Officer of the Bureau, to co-ordinate the activities of the Bureau and to scrutinize .the applications received from the eiiterpries under section 6C and for the performance of such functions that may be assigned to himky the Bureau, from time to time The officers and staff of the Kerala Investment Promotion and Facilitation Cell functioning under the Kerala State IndUstral Development Corporation shall' provide all necessary assistance,to him. Explanation -The Kerala Investment Promotion and Facilitation Cell' means the Cell constituted as per G.O (Ms.) No. 100/2017/md. 'dated 12th October, 2017. ,The Chief Executive Officer shall, diséharge the following powers and functions in addition to the general powers conferred 'under sub-section~(2) ,namely:— to act as a single point contact for 'other enterprises' that require approval from the Bureau;
   • (b) to assist the applicants for completing the composite applications;

to scrutinize the applications with the help of check ?ist and to Verify the documents submitted along with the application; . ,'• -

after completing the scrutiny of the applications,—

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accept applications complete in all respects;.

require additional information regarding the incomplete application in accordance with the provisions of the Act and rules made thereunder;

1. (e) to keep the minutes of the meeting of the Bureau; (0 to inform the decision of the Bureau to the applicant and the competent authorities concerned.

Notwithstanding anything contained in this Act, if the competent authority concerned, has found that the other enterprise has violated any provisions of the Act or rules and the details furnished in the application for the grant of approval is false, the competent authority concerned may recommend to the Bureau for revocation of the approval and thereupon Bureau may revoke the approval after giving a notice to such enterprise and after considering the submission if any, from the enterprise and impose on such enterprise a penalty as referred in section 8.

In section 12 of the principal Act, (i) in sub-section (2), for the words "acknowledgement", the words "certificate of registration" shall be substituted; (ii) in sub-section (3), for the words "acknowledgement", the words "certificate of registration" shall be substituted; (iii) in sub-section (4), for the words "certificate of registration", the words "certificate of registration" shall be substituted.

(1) The Kerala Micro Small and Medium Enterprises Facilitation (Amendment) Ordinance, 2021 (136 of 2021) is hereby repealed. (2) Notwithstanding such repeal, anything done or deemed to have been done or any action taken or deemed to have been taken under the principal Act as amended by the said Ordinance shall be deemed to have been done or taken under the principal Act as amended by this Act.

Law Secretary

•

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[Translation in English of '20216ieJ aamgl 0-0jC6&M-G)

i ci&1s SYTho mpi(roovmoojmnuñ W3X (@w1) published under the authority of the Governor]

ACT 32 OF2021

THE KERALA MICRO SMALL AND MEDIUM ENTERPRISES FACILITATION (AMENDMENT) ACT, 2021

An Act to amend the Kei ala Micto Small and Medium, Enteipi isec Facilitation Act 20/9

Prea,nb/e.—WHEREAs, it is expedient to amend the Kerala Micro Small and Medium Enterprises Facilitation Act, 2019 (16 of 2019) for the purposes hereinatth appearing;

BE it enacted in the Seventy-second Year of the RepubliL of India as follows -

I Shoit title and commencement - (I) This Act may be called the Kerala Micro Small and Medium Enterprises Facilitation (Amendment) Act, 2021.

1. (2) It shall be deemed to have come into forcen the 51h day o October, 2020. 2 Amendment of long title —In the long title of the Kerala Micro1 Small and Medium Enterprises Facilitation Act 2019 (16 of 2019) (hereinafter ieferred to a the principal Act), after the words "micro small and medium enterprises", the words 'and to grant approval to other enterprises in a time bound manner shall be inserted 3 Amendment ofpi eainble —In the preamble of the principal Act, after the words "micro small and medium enterprises"; the words "and to grant approval to other enterprises in a time bound manner' shall be inserted 4 Amendment of section 1 —In sub-section (1) of section 1 of the principal Act, after the words• "Micro Small and Medium Enterprises", the words "and Other Enterprises" shall be inserted. '1