Bill Summary

The Rajasthan Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) (Amendment) Bill, 2023

• The Rajasthan Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) (Amendment) Bill, 2023 was introduced in Rajasthan Legislative Assembly on February 28, 2023.  The Bill seeks to amend the Rajasthan Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) Act, 2019.  The Act provides exemptions to the micro, small, and medium enterprises (MSME) in Rajasthan from certain approvals and inspections.

• Validity of acknowledgement certificate:  Under the Act, a person intending to start an MSME may furnish a declaration of intent to the Bureau of Investment Promotion.  Upon receiving the 
   declaration, the Bureau is required to issue an acknowledgement certificate.  The certificate gives effect to exemption from seeking certain regulatory approvals and related inspections for a period of three years.   The Bill increases the validity of the acknowledgement certificate to five years.

• Exemption under central laws:  Where a central act empowers the state government to provide certain exemptions to MSMEs, the Act provides that such exemptions must be extended to an MSME for at least three years from the issuance of the acknowledgement certificate to it.  The bill increases the exemption period to at least five years from the issuance of the certificate.