Non-compliance with filing MSME-1 by the designated entities would result in a penalty under Section 405(4) of the entities Act, 2013. According to Section 405(4), any company that fails to register MSME-1 would be fined Rs.20,000. In the event of a continuing failure, the company and each officer in default shall be subject to an additional penalty of Rs.1,000 per day if the failure continues, up to a maximum of Rs.3 lakh.