SSI/MSME Registration

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

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  • Receipt of License

    The certificate will be issued within 15 days of the application

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What is SSI/MSME Registration?

Small Scale Industries (SSI) or Micro, Small and Medium Enterprises (MSME) can register themselves under the MSMED Act. It isn't necessary, but very beneficial to do so, as it only exists to offer benefits to those registered under it. These benefits include priority sector lending, excise and direct tax exemptions, capital investment subsidies and power tariff subsidies. To qualify as an MSME, manufacturing enterprises need to have investment of less than Rs. 10 crore in plant and machinery, while service enterprises must have no more than Rs. 5 crore invested in plant and machinery. If, at any time, you cross this investment limit, you need to cancel your registration under the MSMED Act.

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6 Essential Facts on SSI/MSME Registration

What is an SSI/MSME Registration?

Every nation’s economic hopes are pinned on its young, small businesses. The Indian government, with this in mind, offers numerous benefits to such organisations (cheaper credit, easy loan approval, tax exemptions, etc), so that they can achieve growth at a much faster pace and without enduring hardships. To avail of these benefits, the organisations that qualify must get an MSME or SSI Registration (regulated by the MSMED Act). This registration is among one of the easiest of government registrations to be granted.

Is SSI/MSME Registration voluntary or mandatory?

The SSI Registration is only needed to avail of subsidies and benefits. It is absolutely voluntary. However, as it is a fairly easy registration to get quickly (provided you have a manufacturing plant or a commercial space where you render services), many business opt for it over other registrations.

Why should I apply before commencing operations?

This is because you can avail of a Provisional SSI Registration Certificate (PRC). The PRC will enable the unit to obtain term loans and working capital under priority sector lending and make it easier to procure various NOCs and clearances from regulatory bodies, such as Pollution Control Board.

What documents are required for the application?

You may apply for the PRC without an industrial license in case your unit is listed in Schedule-III of the Industrial Licensing Exemption Notification. Other units must first acquire an industrial license. The unit should also have obtained all other clearances, whether statutory or administrative. For example, a drug license under the drug control order or an NoC from Pollution Control Board, if required. The unit should not violate any locational restrictions in force. The unit should not be owned, controlled or subsidiary of any other industrial undertaking. The PRC is issued based on the application form. No field enquiry is made.

What are the advantages of SSI registration?

The benefits range from cheaper bank loans, easy access to credit, quicker approvals from state and central government bodies, tax rebates, cheaper infrastructure, including electricity and VAT exemptions.

Why is it essential to maintain records?

Any entity with an SSI Registration that fails to follow any regulations laid by the government will be deregistered. Also, in case you exceed the investment limits, as noted below, your firm’s registration will be cancelled.

What You Need To Know

Micro Enterprises

Micro enterprises are the smallest entities, of course. Micro manufacturing enterprises have investment of less than Rs. 25 lakh in plant and machinery, while micro service enterprises have less than Rs. 10 lakh invested.

Small Enterprises

Small manufacturing enterprises may have between Rs. 25 lakh and Rs. 5 crore invested in plant and machinery, while small service enterprises may have between Rs. 10 lakh and Rs. 2 crore invested.

Medium Enterprises

Medium manufacturing enterprises may have between Rs. 5 crore and Rs. 10 crore invested in plant and machinery, while small service enterprises may have between Rs. 2 crore and Rs. 5 crore invested.

FAQs on SSI/MSME Registration

  • 1. For how long is a Provisional Registration Certificate (PRC) valid?
    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.
  • 2. What factors are not counted as investment?
    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.
  • 3. How does SSI/MSME help me get a loan from a bank?
    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.
  • 4. What benefits are given by state and central government?
    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.

SSI/MSME Registration Process

2 Working Days

You need to send in PAN cards, identity and address proofs of the proprietor/partners/directors. Private limited companies must also submit the Memorandum and Articles of Association, Form 32, Form 18 and Certificate of Incorporation, while Partnerships must submit the Partnership Agreement. Finally, the rental agreement for the office address, if it is rented, along with the electricity bill.

2 Working Days

We will file your application with the relevant state office. Some additional documents may need to be submitted at this stage, as the procedure differs with each state. Some states require MSMEs to produce sale bills of machinery and municipal clearance.

15 Working Days

You will be issued a provisional certificate (in case the unit has not commenced production) that is valid for five years. Once your plant is operational, a permanent certificate will be issued.

Types of Government Registrations

Small Scale Industry VAT Registration Shops & Establishments Act Professional Tax Registration Service Tax Registration
Who It's For
Micro, small, medium enterprises Sellers of goods All businesses All employers Service providers
When You Need It
For subsidies and tax breaks When sales cross Rs. 5 lakh Within 30 days of operations Within 30 days of operations When sales cross Rs. 9 lakh
Returns to be Filed
No Yes No Yes Yes
Issuing Authority
Ministry of Micro Small and Medium Enterprises State Government Municipal Corporation State Government Central Government
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We've tied-up with some of the best vendors in major cities of the country to get you your Importer-Exporter Code. We've completed 500+ registrations in the past 12 months.

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We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.

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Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.