SSI/MSME Registration

As a small enterprise, you can have access to priority sector lending, tax exemptions & capital investment and power tariff subsidies.

  • Data Check

    We do a thorough check of the files you send in

  • Vendor Connect

    We will appoint an affiliate to process your application

  • Receipt of License

    The certificate will be issued within 15 days of the application

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Online Udyog Aadhaar (SSI/ MSME) Registration - An Overview


An SSI also called Small Scale Industry Registration is a registration from the Ministry of Micro, Small and Medium Enterprises. When a business registers as SSI it becomes eligible to avail government schemes and subsidies that are exclusive for small businesses.

Vakilsearch offers expert service for MSME registration:

  • Free consultation
  • Data verification: A thorough check of all the files submitted
  • Vendor Connect: A dedicated affiliate who processes the SSI online application
  • Receipt of License: The certificate will be issued within 15 days of application

MSME registration can be done by enterprises of sizes:

  • Micro
  • Small
  • Medium

Under the MSMED Act, these small businesses get varying incentives such as:

  • Priority sector lending
  • Tax exemptions
  • Capital investment

Registering for MSME is an entire online process but seeking the help of professionals makes it more easy. Vakilsearch assists you with the online application and gets the required approval from the department.

What is SSI/MSME Registration?


Small scale industries play a vital role in the socio-economic development of India. To promote and encourage these small-scale industries, the government of the country created the MSMED Act. The Act was created to maintain a list of all the industries registered as MSME or SSI. The record aided in providing support and incentives to these firms. Furthermore, SSI helped in employment of people at little capital investments. All these entities should possess certificate of MSME registration, which should be registered with the Central Government’s MSME department under the Act of MSME Development- 2006.

The MSMED Act includes:

  • Small Scale Industries (SSI)
  • Micro, Small and Medium Enterprises (MSME)
  • Different sectors have different limits for registering under the act.
  • A manufacturing enterprise with plants and machinery that required an investment of below 10 Crores can be an MSME.
  • For service enterprises, the amount caps at five crores.
  • If the company exceeds the upper limit, at any point in the future, it is not considered as an MSME.

To avail the numerous benefits from the Government of India, an SSI registration certificate is needed. It is an optional registration but the companies that get registered are eligible for:

  • Lesser interest rates
  • Excise exemption scheme
  • Subsidies in tax, capital investment and power tariff
  • Other support

New Udyog Aadhaar replaces SSI / MSME Registration


In order to make the process of registering a small or medium level enterprise easy, the government introduced Udyog Aadhaar. Earlier, MSMEs have to undergo tedious, bureaucratic process with lots of paper works for registering their business. But now businesses can register under Udyog Aadhaar using their Aadhaar card as the sole legal document and their National Industrial Classification Code (NIC). The government requires NIC for classification of businesses based on their operations. There is no registration fee applicable for Udyog Aadhaar registration.

Following are the MSME schemes offered by the government Udyog Aadhaar.

Udyog Aadhaar Memorandum

Udyog Aadhaar Memorandum (UAM) was introduced under the MSMED Act, 2006 to promote the ease of doing business for MSMEs. A simple one-page form is filed and the registration is user-friendly and easy. No documentation is required, except the 12-digit Aadhaar card number. Businesses also have a provision to file more than one Udyog Aadhaar with the same Aadhaar number. UAM can be filed on a self-declaration basis.

Zero Defect Zero Effect

ZED scheme encourages manufacturers to manufacture goods for export that are of highest quality. If the standards are met and goods are exported, the exporters will be eligible for rebates and concessions. If they are not exporterd, the goods will be rejected and returned to India.

Quality Management Standards and Quality Technology Tools

This scheme is aimed at helping micro, small and medium entreprises produce quality products at competitive prices by adopting the tools. Through the tools, businesses will be able to optimize the resource, improve quality, reduce rejection and rework.

Under this scheme, businesses will be sensitized about the tools through activities like workshops, campaigns and seminars.

A System For Monitoring The Grievances

Under this scheme, the complaints and issues of the businesses will be addressed. The business owners can also track the status of their complaint and open it again it they are dissatisfied with the outcomes.

Why Udyog Aadhaar registration?


Benefits

In the banking sector, if you need to avail the benefits of the MSMED Act of 2006, you will have to opt for MSME registration.

When you register your firm with Udyog Aadhaar , the business can leverage many schemes initiated by State and Central Government. In addition to this, for availing the MSMED Act 2006 benefits in the banking sector, MSME registration becomes mandatory.

Some of the advantages of an MSME are:

  1. Refrain from asking for security deposits
  2. Concession in the electricity bills
  3. Increased chances of winning government tenders
  4. Reduction in fee for filing patents and trademark registration to get protection under the rights of intellectual properties.
  5. Easy and cheaper bank loans
  6. Reservation benefits
  7. Stamp duty and registration charges are waived off
  8. Reimbursement under the bar code registration
  9. Industrial promotion subsidy
  10. Reduction in the rate of the interest by major banks

Type of MSME Registrations


Provisional MSME registration

The first stage of MSME registration is provisional which is given during the period before the establishment of the entity or the pre-investment period of the firm. At this point, the enterprise qualifies for:

  • Obtaining facilities for accommodation, land, etc.
  • Obtaining important approvals and NOCs
  • Obtaining clearances from regulatory bodies such as Pollution Control Board and Labour Regulations
  • The Provisional SSI Registration Certificate (PRC) enables small units to obtain term loans, and working capital from financial institutions and banks under priority sector lending.

Permanent MSME registration

The second type of MSME registration is permanent. It is given to industrial units that are already functioning. Though the Act is not mandatory, it is immensely beneficial for firms to have the support of government.

Guidelines for online SSI / MSME Registration


Apply for provisional registration

A PRC ( Provisional Registration Certificate) is allotted to new enterprises without any field enquiry. It is purely an application-based form. Therefore, it has to be applied in the precise prescribed form before operations begin in the unit. Once the application is submitted, the provisional registration will be provided without a physical inspection of the unit. The procedure is quick so that newly established firms can avail multiple benefits, quick loans and other necessary approvals.

Starting the business

The provisional certificate is valid for a period of five years and the enterprise has to become operational within it. If the business fails to commence work under five years, a new application must be submitted.

Applying for permanent SSI registration

If the entrepreneur successfully begins operations within five years, they can apply for a permanent certification. The registration is done at the Ministry of MSMEs. The permanent SSI registration is granted only if the specific conditions are met and mandatory documents are submitted.

The unit has obtained statutory and administrative clearances as required.

  • The unit does not violate any regulation or restriction.
  • The value of plant and machinery in the unit does not exceed the prescribed limits.
  • There should be proof the enterprise is not owned, subsidiary of or controlled by another industry.

At Vakilsearch, we are committed to helping you overcome every any obstacle that may arise in MSME registration for your enterprise.

List of documents required for SSI / MSME Registration


  • Business address proof
  • Copies of sale bill and purchase bill.
  • Partnership Deed/ MoA and AoA.
  • Copy of licenses and bills of machinery purchased.
  • For firms that are listed in Schedule -III of the Industrial Licensing Exemption Notification, no Industrial license is needed. Every other enterprise must obtain it for the PRC (Provisional Registration Certificate) application.
  • For the registration and document process, all statutory and administrative clearances need to be obtained such a NoC from pollution Control board to prove that no restrictions are being violated.
  • Opening of the Current Account
    Current account or Demand Deposit Account is used by businesses for a higher number of transactions, including deposits, withdrawals, and contra transactions. It helps in the smooth functioning of a business.

Udyog Aadhaar eligibility - Who should obtain SSI/MSME Registration?

The eligibility for the scheme of MSME or SSI registration is dependent on the scale of business of the enterprise. Udyog Aadhaar registration is applicable for Proprietorship, Hindu Undivided Family(HUF), one-person company(OPC), Partnership Firm, public limited company, private limited company, production company, co-operative societies, limited liability partnership(LLP) or any association of persons or any other undertaking.

Micro Enterprises:

A manufacturing enterprise should have investment of less than Rs. 25 lakhs in plant and machinery. A service enterprise should have less than Rs. 10 lakhs invested. These micro enterprises are the smallest entities.

Small Enterprises:

For manufacturing enterprises, the investment has to be between Rs. 25 lakhs and Rs. 5 crores in plant and machinery. For service enterprises, the range is between Rs. 10 lakhs and Rs. 2 crores.

Medium Enterprises:

If it is a manufacturing enterprise, the investment in plant and machinery has to be between Rs. 5 crore and Rs. 10 crores. If it is a service enterprise, the range is from Rs. 2 crores to Rs. 5 crores.

How we can help with MSME Registration? Why Vakilsearch

In 10 – 20 days time Vakilsearch obtains your MSME registration (without factoring in Government approval time).

2 WORKING DAYS

Following are the documents to be submitted with us:

  • PAN cards
  • Rental agreement for the office address (if rented)
  • Electricity bill
  • Identity and address proofs of the proprietor/partners/directors
  • For private limited companies:
    - Memorandum and Articles of Association
    - Form 32
    - Form 18
    - Certificate of incorporation
  • For Partnerships:
    - Partnership agreement.

2 WORKING DAYS

The submitted documents are filed along with the application. In some states, additional paperwork might be needed such as sale bills of machinery and municipal clearance.

15 WORKING DAYS

If production has not begun, a provisional certificate is issued for 5 years. It becomes permanent when the unit is functioning.

FAQs on SSI/MSME Registration


The PRC expires at the end of five years, at which point you may re-apply if the unit is not yet operational, or if the unit exceeds investment limits set by the MSMED Act. Once you commence operations, you can apply for the Permanent License.
For a registration, total plant and machinery cost should be up to Rs. 25 crore for manufacturing units and Rs. 10 crore for service units. While calculating this number, the value of land and building will not be counted toward the total investment. Also, the original cost of the equipment and plant and machinery is taken into account. Depreciation cannot be factored in.
All banks and other financial institutions recognise MSMEs and have created special schemes for them. This usually includes priority sector lending, which means that the likelihood of your business being sanctioned a loan is high. Bank loan interest rates will also be lower. There may also be preferential treatment in case of delay in repayment.
Most states offer those units registered under the MSMED Act a subsidy on power, taxes, and entry to state-run industrial estates. In particular, there is a sales tax exemption in most states and purchase preferences on goods produced. Depending on your business, you may also enjoy an excise exemption scheme and exemption from certain direct taxes in the initial years of your business.

Types of Government Registrations


Small Scale Industry Shops & Establishments Act Professional Tax Registration
Who It's For
Micro, small, medium enterprises All businesses All employers
When You Need It
For subsidies and tax breaks Within 30 days of operations Within 30 days of operations
Returns to be Filed
No No Yes
Issuing Authority
Ministry of Micro Small and Medium Enterprises Municipal Corporation State Government
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