In this article we are going to look at the step by step procedure of getting Small Scale Industries registration done for your business
SSI registration aka Small Scale Industry registration is done from the Ministry of MSME (Micro, Small and Medium Enterprises). A business that obtains SSI registration becomes eligible for many schemes and subsidies that the government promotes to boost small scale businesses in India. You will definitely be surprised to know the numerous benefits that you can avail on getting the Small Scale Industries registration done.
In the nascent stages of a business, it is common for entrepreneurs to look for a license so that the government recognizes the business. One of the easy registration processes granted by the government is the MSME registration. Besides the recognition from the government, there is a slew of other benefits of getting the same done.
Notable Benefits Of Small Scale Industries Registration
The registration process does not have any statutory basis. Normally, businesses get registered to avail numerous benefits. These benefits are funded either by the state government or the central government. The incentives that are provided by the latter usually offer priority sector lending or a low-interest rate, tax exemption, excise exemption scheme and statutory support such as Internet on Delayed Payments Act.
The government offers its own facilities and incentives for Small Scale Industries and relate to the industrial estate developments, tax subsidies, capital investment, power tariff subsidies and more. The government targets their incentives and offers support packages to the businesses registered with them.
When it comes to the benefits of provisional SSI registration, it includes the material required for the construction of the factory or building. It is possible to get the same at a subsidized rate as well. With the issuance of the provisional SSI registration, a business can get the necessary clearances from the authorities without any delay.
Objectives Of SSI Registration Scheme
The key objectives of SSI registration include the following.
- Tally and keep track of the small industries to which incentives and support are targeted
- To help gather statistics
- To provide a certificate letting the businesses avail statutory benefits, especially related to the protection
- To help form nodal centers at the district, state, and central level to promote Small Scale Industries.
- Before you opt for SSI registration, make sure your business is eligible to get the registration permit. Do keep in mind that your business’ turnover along with the total amount of money invested in the unit will account to make sure that it is eligible for the SSI license.
Remember that to be eligible for SSI registration, you need to be either a micro-enterprise, small enterprise or medium enterprise. The micro-enterprises are the smallest ones and have less than Rs. 25 lakh investment in the plant and machinery. The small enterprises have between ₹ 25 lakh and ₹ 5 crores invested in both the plant and machinery. And, the same is between ₹ 5 crore and ₹ 10 crores for medium enterprises.
Procedure For SSI Registration
The present procedures for the Small Scale Industries registration feature the following. A unit, which can apply for PRC (Permanent Registration Certificate) for an item, which does not need an industrial license. It means that the items listed in the Schedule-III and the ones that are not listed in Schedule-I or Schedule-II of the Exemption Notification. Those units that employ less than 100 workers either with or without power can proceed to apply for SSI registration.
Next, a unit can apply for a PRC in the official application form. There is no need to conduct a field inquiry and you need to get a PRC issued. Remember that the PRC is valid for five years and if you are not able to set up the business unit within this time frame, then you can apply for the same again after five years. Once the entity starts with the production process, you need to apply for a permanent Small Scale Industries registration.
Before applying for SSI registration, the businesses have to undergo an evaluation process. The unit should obtain all clearances that are administrative or statutory. If it is a drug license, then a no objection certificate from the National Pollution Control Board is needed. The unit should not violate the restrictions specific to the location during the evaluation time. The plant and machinery valuation should be within the specified limits. The unit should not be owned, controlled or a subsidiary of other industrial undertakings.
Conclusion
Registering your business as a Small Scale Industries has immense benefits. For example, if you are an SSI-registered company, your customers have to pay you within a specified period of time after which the customer will be required to pay interest on the amount due. Your customers are obliged to pay you on time tinder SSI rules and if they don’t. There are many benefits, including welfare schemes, subsidies, and grants from the government. So if you fit the criteria, you should get registered as an SSI. If you have any other such queries or need assistance with any regulatory requirements, get in touch with us and we will ensure that you receive the best professional assistance for your requirements.
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