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FAQ

1. What are the salient features of “The Kerala Micro Small Medium Enterprises Facilitation Act, 2019”?

<ul>a) To exempt all projects with an investment outlay of up to Rs. 10 crore and not falling under red category as notified by Pollution Control Board from licenses, approvals, permits etc. under various Acts for the first three years.</ul> <ul>b) Automatic approval route for investments up to 10 Crores.</ul> <ul>c) Basis of approval will be undertaking and Self Certification.</ul> <ul>d) Acknowledgement Certificate – Valid for 3 years.</ul> <ul>e) No inspections will be undertaken during this period.</ul> <ul>f) After expiry, license to be obtained within 6 months.</ul> <ul>g) Provision for penalty in case of violation of norms and undertaking or misrepresentation of facts.</ul>

2. Where can I find the copy of The Kerala Micro Small Medium Enterprises Facilitation Act, 2019 and The Kerala Micro Small Medium Enterprises Facilitation Rules, 2020?

<ul>a) The Kerala Micro Small Medium Enterprises Facilitation Act, 2019 Please visit the website: <a href ="https://invest.kerala.gov.in" target="_blank">https://invest.kerala.gov.in</a><br> Direct Link: <a href ="https://invest.kerala.gov.in/wp-content/uploads/2019/12/The-Kerala-Micro-Small-and-Medium-Enterprises-Facilitation-Act-2019.pdf" target="_blank">https://invest.kerala.gov.in/wp-content/uploads/2019/12/The-Kerala-Micro-Small-and-Medium-Enterprises-Facilitation-Act-2019.pdf</a></ul> <ul>b)The Kerala Micro Small Medium Enterprises Facilitation Rules, 2020 Please visit the website: <a href="https://invest.kerala.gov.in" target=_blank">invest.kerala.gov.in</a><br> Direct Link:<a href="https://invest.kerala.gov.in/wp-content/uploads/2020/01/eogfiledownload-17.pdf" target="_blank">https://invest.kerala.gov.in/wp-content/uploads/2020/01/eogfiledownload-17.pdf</a></ul>

3. What is the definition of MSME?

<ul>According to Micro, Small & Medium Enterprises Development (MSMED) Act, 2006, the Micro, Small and Medium Enterprises (MSME) are classified in two Classes namely; manufacturing and service enterprises as under. </ul><br> <center><table style="border: 1px solid black; align: center;" cellspacing="0" cellpadding="6" > <tr ><th colspan="2" style="border: 1px solid black;text-align: center;" ><b>Manufacturing Sector</b></th></tr> <tr> <th style="border: 1px solid black;"><b>Type of Enterprise</b></th> <th style="border: 1px solid black;"><b>Enterprise Investment in plant & machinery</b></th> </tr> <tr> <td style="border: 1px solid black;">Micro</td> <td style="border: 1px solid black;">Does not exceed 25 lakh rupees</td> </tr> <tr> <td style="border: 1px solid black;">Small</td> <td style="border: 1px solid black;"> More than 25 lakh rupees but does not exceed 5 crore rupees</td> </tr> <tr> <td style="border: 1px solid black;">Medium</td> <td style="border: 1px solid black;"> More than 5 crore rupees but does not exceed 10 crore rupees</td> </tr> <tr ><th colspan="2" style="border: 1px solid black;text-align: center;"><b> Service Sector</b></th></tr> <tr> <td style="border: 1px solid black;"><b>Type of Enterprise</b></td> <td style="border: 1px solid black;"><b>Enterprise Investment in equipment</b></td></tr> <tr><td style="border: 1px solid black;">Micro</td> <td style="border: 1px solid black;"> Does not exceed 10 lakh rupees</td></tr> <tr> <td style="border: 1px solid black;">Small</td><td style="border: 1px solid black;"> More than 10 lakh rupees but does not exceed 2 crore rupees</td></tr> <tr> <td style="border: 1px solid black;">Medium</td><td style="border: 1px solid black;"> More than 2 crore rupees but does not exceed 5 crore rupees</td></tr> </table></center>

4. Who can apply?

<ul>Any person who intends to start an enterprise other than those not included as 'Red Category' by the Kerala State Pollution Control Board may, furnish before the nodal agency a Self Certification to start such an enterprise in such form and in such manner, as may be prescribed.</ul>

5. What are the eligibility criteria under the given act?

<ul>The exemptions under the Act are applicable only on the new enterprise and that includes an enterprise set up or proposed to be set up by an existing enterprise for manufacturing products or providing services at a location which is separately identifiable and different from location of the existing enterprise.</ul>

6. Where can I apply for Acknowledgment Certificate?

<ul>Kindly visit - <a href ="http://kswift.kerala.gov.in/index/" target="_blank">http://kswift.kerala.gov.in/index/</a></ul>

7. How can the enterprise apply under the act?

<ul>Enterprise can apply by submitting a Self Certification online. The Step by Step procedure are as below:<ol> <li>a) The Entrepreneur has to "Register" once in the online single window clearance portal – KSWIFT (http://www.kswift.kerala.gov.in) by entering few details like Name, Date of Birth, Gender, Mobile No, e-Mail ID in the Entrepreneur Sign Up Page.</li> <li>b) Authentication of details will be made by e-Mail and SMS and the Entrepreneur is provided with "User ID" and "Password" details to login the KSWIFT portal to apply for various approvals/clearances. The Registration of Entrepreneurs in KSWIFT portal is free of cost.</li> <li>c) Already registered Entrepreneurs (existing users) can apply for multiple projects under the following option Projects with capital investment below INR 10 Crores; Between INR 10 and 15 Crores; Above INR 15 Crores. There is no need to create multiple login id for applying for multiple projects.</li> <li>d) New Entrepreneurs upon successful login will be provided with three options i.e., Projects with capital investment below INR 10 Crores; Between INR 10 and 15 Crores; Above INR 15 Crores.</li> <li>e) The Micro, Small and Medium Enterprises (MSME) with capital investment below INR 10 Crores and not included as 'Red Category' by the Kerala State Pollution Control Board, the Entrepreneurs shall apply by clicking the “below INR 10 Crores” tab and submit the Self Certification. No documents are required for filing the Self Certification.</li> <li>f) Entrepreneurs shall read carefully all the declarations, and check/tick the boxes before submitting. By submitting this form, applicant confirm that applicant has read and agree to all the terms and conditions.</li> <li>g) The Entrepreneur can alter or modify the information in the Self Certification before the issuance of Acknowledgement Certificate or can save the application and submit it in a later time by using “save as draft” option.</li> <li>h) Upon submission of the Self Certification, a fee calculated at the rate of 0.01 % of the total project cost (excluding the value of land) is required to be paid online for each submission by the enterprise. The fee for the same shall be remitted to designated account via online payment gateway integrated within KSWIFT.</li> <li>i) The enterprise will receive a computer-generated Acknowledgement Certificate with QR Code and Unique Identification Number after successfully submitting the Self Certification along with required fees. Entrepreneur can instantly download and print the Acknowledgement Certificate.</li> <li> Kindly visit the below link to access the application walk through video<br> <a href ="https://www.youtube.com/watch?v=kkKuiOIVNUo" target="_blank">https://www.youtube.com/watch?v=kkKuiOIVNUo</a></li></ol> </ul>

8. Is there any list of documents required with the application?

<ul>No documents are required for filing of Self Certification. </ul>

9. Who will be the representative applicant for filing Self Certification?

<ul>The Self Certification shall be submitted by, -<ol> <li>(a) the proprietor, in case of proprietary enterprise;</li> <li>(b) the authorized partner in case of partnership enterprise;</li> <li>(c) Director or the principal officer or any person duly authorized by the board in the case of a company; and</li> <li>(d) the authorized person in case of other forms of enterprises.</li></ol> </ul>

10. Is there any fee for applying?

<ul>Yes, an application fees calculated at the rate 0.01% of the total project cost is required to be paid by the applicant for submitting Self Certification under the Act.</ul>

11. How do I get confirmation after filing of Self Certification?

<ul>The enterprise will receive a computer-generated Acknowledgement Certificate for confirmation of receipt of Self Certification. </ul>

12. How will the enterprise receive the Acknowledgement Certificate and who will issue Acknowledgement Certificate?

The Entrepreneurs can instantly view and download the Acknowledgement Certificate and in case if the entrepreneur wants to download the Acknowledgement Certificate at a later stage, he or she may login to their respective application dashboard.

13. What is the validity period of the Acknowledgement Certificate?

The validity period of the Acknowledgement Certificate is 3 years from the date of issuance of the Acknowledgement Certificate. Acknowledgement Certificate will be valid only for the premises mentioned in self-certification.

14. How can the competent authority or third person do instant verification of the validity or the details mentioned in the Acknowledgement Certificate?

The verification of the validity or the details mentioned in the Acknowledgement Certificate can be done by scanning the QR Code available on the Acknowledgement Certificate or by entering the Acknowledgement Certificate number of the enterprise under “Verify Acknowledgement Certificate” link provided under services tab in website <a href =" http://kswift.kerala.gov.in/index/" target="_blank"> http://kswift.kerala.gov.in/index/</a>

15. Will Acknowledgement Certificate be applicable on more than one set of premises?

No, Acknowledgement Certificate will be valid on single set of premises mentioned in Self Certification. A separate Self Certification shall be submitted in case the enterprise is having commercial operations on more than one set of premises.

16. What is the effect of Acknowledgement Certificate?

<ul>During the period of three years, the enterprise will be exempted from approvals and inspections under</ul><ol> <li>1. The Kerala Panchayat Raj Act, 1994 (13 of 1994)</li> <li>2. The Kerala Municipality Act, 1994 (20 of 1994)</li> <li>3. The Kerala Shops and Commercial Establishments Act, 1960 (34 of 1960)</li> <li>4. The Kerala Lift and Escalators Act, 2013 (18 of 2013)</li> <li>5. Travancore – Cochin Public Health Act, 1955 (XVI of 1955)</li></li> <li>6. Madras Public Health Act, 1939 (3 of 1939)</li></ol> <ul>Note:- Provided that the Acknowledgement Certificate shall not entitle a person to use a land contrary to the provisions contained in the Kerala Conservation of Paddy Land and Wetland Act, 2008 (28 of 2008) and it shall also 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), wherever such plan is in force.</ul>

17. What are the exemptions from the approvals mentioned in the Act/Rules?

<ul>Micro Small and Medium Enterprises in the State with capital investment below INR 10 Crores and not included as 'Red Category' by the Kerala State Pollution Control Board shall obtain Acknowledgment Certificate and the enterprise shall be exempted from approvals and inspections for a period of 3 years in such case as mentioned in the schedule appended to the MSME Rules, 2020.</ul><table class="table table-bordered table-striped table-hover dataTable mo_table" style="width: 100%"> <thead> <tr bgcolor="#4682b4" style="color: white"> <th style="font-size:18px;">Serial No</th> <th style="font-size:18px;">Approval</th> <th style="font-size:18px;"> Act/Rule</th> <th style="font-size:18px;">Category</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Issue of Development Permit</td> <td>The Kerala Panchayat Raj Act, 1994 (13 of 1994)</td> <td>For constructions of building with plinth area up to 20,000 Sq. ft. and height up to 15 m.</td> </tr> <tr> <td>2</td> <td>Issue of Building Permit </td> <td align="center" style="text-align: center">"</td> <td align="center" style="text-align: center">"</td> </tr> <tr> <td>3</td> <td>Layout Approval</td> <td align="center" style="text-align: center">"</td> <td align="center" style="text-align: center">"</td> </tr> <tr> <td>4</td> <td>Permission for construction of factories and installation of machinery </td> <td align="center" style="text-align: center">"</td> <td align="center" style="text-align: center;color: darkred">---</td> </tr> <tr> <td>5</td> <td>Issue of Licence to Factories, Trades, Entrepreneurship activities and other services </td> <td align="center" style="text-align: center">"</td> <td align="center" style="text-align: center;color: darkred">---</td> </tr> <tr> <td>6</td> <td>Registration of Private Hospitals, Clinics and Paramedical Institutions </td> <td align="center" style="text-align: center">''</td> <td align="center" style="text-align: center;color: darkred">---</td> </tr> <tr> <td>7</td> <td>Issue of Development Permit</td> <td>The Kerala Municipality Act, 1994 (20 of 1994) </td> <td>For constructions of building with plinth area up to 20,000 Sq. ft. and height up to 15 m.</td> </tr> <tr> <td>8</td> <td>Issue of Building Permit </td> <td align="center" style="text-align: center">"</td> <td align="center" style="text-align: center">"</td> </tr> <tr> <td>9</td> <td>Layout Approval</td> <td align="center" style="text-align: center">"</td> <td align="center" style="text-align: center">"</td> </tr> <tr> <td>10</td> <td>Permission for construction of factories and installation of machinery </td> <td align="center" style="text-align: center">"</td> <td align="center" style="text-align: center;color: darkred">---</td> </tr> <tr> <td>11</td> <td>Issue of Licence to Factories, Trades, Entrepreneurship activities and other services </td> <td align="center" style="text-align: center">"</td> <td align="center" style="text-align: center;color: darkred">---</td> </tr> <tr> <td>12</td> <td>Registration of Private Hospitals, Clinics and Paramedical Institutions </td> <td align="center" style="text-align: center">''</td> <td align="center" style="text-align: center;color: darkred">---</td> </tr> <tr> <td>13</td> <td>NOC –Under Item 12, 13 of sub-rule (4) of rule 5 under the Kerala Municipality Building Rules, 2019 and Kerala Panchayat Building Rules, 2019.</td> <td>The Kerala Panchayat Building Rules, 2019 <br> The Kerala Municipality Building Rules, 2019 </td> <td>For constructions of building with plinth area up to 20,000 Sq. ft. and height up to 15 m.<br> (It shall not be applicable for assembly and hazardous occupancy)</td> </tr> <tr> <td>14</td> <td>License for working lifts and escalators </td> <td>The Kerala Lift and Escalators Act, 2013 </td> <td>For working lifts and escalators up to three floors </td> </tr> <tr> <td>15</td> <td>DMO clearance </td> <td>Travancore – Cochin Public Health Act, 1955 <br> Madras Public Health Act, 1939 </td> <td align="center" style="text-align: center;color: darkred">---</td> </tr> <tr> <td>16</td> <td>Registration </td> <td>The Kerala Shops and Commercial Establishments Act, 1960 </td> <td align="center" style="text-align: center;color: darkred">---</td> </tr> </tbody> </table>

18. Under what conditions Acknowledgement Certificate is subject to cancellation/revocation?

<ul>Under following conditions Acknowledgement Certificate can be revoked: <ol> <li>a) Willful submission of wrong information in Self Certification.</li> <li>b) Breach or contravention of any of the provisions of the Act and the rules.</li> <li>c) If the enterprise cease to be a micro, small or medium enterprise.</li> <li>d) If the enterprise changes the location of manufacturing or service activity as mentioned in Self Certification.</li> <li>e) If the enterprise ceases to exist due to merger or split or demerger or acquisition or amalgamation and the enterprise is a part of such arrangement.</li></ol></ul>

19. What will happen after completion of effective period of the Acknowledgement Certificate?

The Enterprise will have to obtain approvals/clearances from the concerned departments within 6 months from the date of completion of effective period the Acknowledgement Certificate.

20. Can enterprise take approvals from departments during the validity period of Acknowledgement Certificate?

The enterprise can take approvals from departments during the validity period of Acknowledgement Certificate and it does not have to wait for the expiry of validity period.

21. Who will authenticate the information submitted by the enterprise? What will happen if the enterprise submits the wrong information?

Acknowledgement Certificate will be issued based on applicant’s Self Certification and the information submitted by the enterprise will not be authenticated by any authority. If a violation is noticed by the Nodal Agency or there is any suppression of material facts or the information furnished in the Self Certification is found to be false, only the Nodal Agency has the power to cancel the Acknowledgement Certificate after affording an opportunity of being heard to the applicant/enterprise by giving 15 days notice seeking his explanation. Also, the Nodal Agency has the power to impose fine not exceeding INR 5 Lakhs after considering submission made by the enterprise.

22. Will the exemptions under the act be applicable on the renewals of various approvals?

No. The exemptions from the renewal of approvals are not covered under the Act.

23. What will happen if enterprise fails to get approvals after three years and six months?

If the enterprise fails to get approvals after 3.5years then the competent authority will act as per the provisions of the concerned Acts and Rules.

24. What all information will be included in Acknowledgement Certificate?

The computer-generated Acknowledgement Certificate will include the information of the enterprise and validity period of the Acknowledgement Certificate.

25. Who will be the facilitating agency for the Act?

The District Board constituted under section 4 of the Kerala Industrial Single Window Clearance Boards and Industrial Township Area Development Act, 1999 shall be the Nodal Agency for assisting and facilitating the establishment of the enterprise for availing the exemptions under the Act.

26. Is there provision for grievance redressal?

The Nodal Agency shall receive and address the grievances and queries of the enterprise related to anything done or omitted to be done under the Act and Rules. Nodal Agency shall be responsible for coordination between the Competent Authorities and the enterprise. In case of dispute between enterprise and Competent Authority, the Nodal Agency shall resolve the dispute and for that purpose may seek directions from the State Board, as and when required.

27. How will the competent authority get the information of the enterprises that are exempted under the act?

Nodal Agency shall, on issuance of Acknowledgment Certificate, forward the Self Certification and Acknowledgement Certificate of enterprise to all Competent Authorities.

28. Is there any provision to file appeal under the provision of this Act?

State Board constituted under section 3 of the Kerala Industrial Single Window Clearance Boards and Industrial Township Area Development Act, 1999(5 of 2000), who shall exercise the powers of the Appellate Authority under this Act. Any person aggrieved by the decision of the nodal agency may, within thirty days from the date of such decision, file an appeal before the Appellate Authority as prescribed in the Rules.

29. What are the responsibilities of the enterprise?

<ul>The enterprises shall<ol> <li>a) Ensure that the information furnished in Self Certification is true and correct and no material information has been suppressed/concealed.</li> <li>b) Ensure to abide by the Kerala Micro Small Medium Enterprises Facilitation Act, 2019 and the Rules. </li> <li>c) Comply and observe the various Rules and Regulations prescribed under various enactments which are required to be complied with for setting up and operation of the enterprise in the State.</li> <li>d) Inform the nodal agency in case of any change in the information provided by it in the Self Certification.</li> <li>e) Not engage in any manufacturing activity or provide any services which are prohibited under any law or rules.</li> <li>f) Maintain the safety standards prescribed under various enactments specified under section 10(2) of the Act in the operation of the enterprise to ensure safety and health of the workers or employees.</li> <li>g) Obtain required approvals, within 6 months from the validity date of Acknowledgement Certificate.</li></ol></ul>

30. What are the contact details of the helpdesk?

<ul>Help desk can be contacted at <a href ="mailto:kswift@ksidcmail.org" target="_blank">kswift@ksidcmail.org</a> or <a href="tel:04712727269">0471-2727269</a></ul>

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