SSI Registration Online
Concept of SSI
Small Scale Industries are referred as SSI. When such small-scale industries apply for registration then it is referred as SSI Registration. Registration for Small Scale Industry can be acquired from the Ministry of Micro, Small and Medium Enterprises or MSME. Moreover, under the guidelines sanctioned by the Ministry of Industry, Development Commissioner along with the Department of Small Scale Industries and Agro & Rural Industries, such registrations are approved by the Directorate of industries of the State Government. In addition, the Industrial (Development & Regulation) Act, 1951 regulates all the categorization of actions as well as the magnitude of investment in fixed resources of plant and apparatus for SSI. There are a number of policies and schemes introduced in the SSI Board with the help of guidance provided by the Prime Minister of India and the Small Industries Development Organization (SIDO). The main reason behind this venture is to safeguard the interests of small-scale industry and to set aside plethora of artifacts so that the SSI sector has absolute manufacturing rights to those products. Manufacturing units, as well as service-rendering enterprises, can apply for SSI registration. The clauses under which SSI units in manufacturing and SSI units in services are qualified for registration are slightly different.
- In case of Micro Enterprises, the investment should be equal to Rs.25 lakhs in the plant as well as machinery.
- In case of Small Enterprises, the investment should be capable of Rs.5 Crores in the plant as well as machinery.
- In case of Medium Enterprises, the investment should be equal to Rs.10 crores in the plant as well as machinery.
Steps to follow to apply for
The following steps are followed to apply for online SSI Registration-
Firstly, any business choosing SSI registration online has to apply for Provisional SSI Registration Certificate or PRC in short form. The main aim of the issue of a Provisional Registration Certificate is to help the SSI entity to acquire loans and apply for operational capital from financial institutions and/or banks when the entity is in its early stage of functioning. All such financial institutions fall underneath the priority sector lending. The PRC is also responsible to help the businesses to acquire accommodation facilities. Furthermore, land approvals, NOCS, approval from authoritarian bodies such as Pollution Control Board, Labour Regulations and more are also acquired via Provisional SSI Registration Certificate. In order to attain a Provisional SSI registration, it is not necessary to have an industrial license. On successful completion of Provisional SSI registration application, no field examination is required for achieving provisional registration certificate. The validity of Provisional SSI registrations is for five years. However, In case the capitalist fails to establish the unit in the given duration of time, a brand new application can be made for provisional registration at the end of five years tenure.
- On successfully gaining the Provisional SSI Registration Certificate, the business can be commenced. Thereafter, all the manufacturing and other work activities can be continued without any obstructions.
The next step is to apply for a Permanent SSI Registration. When the business starts emerging and continues with its manufacturing as a unit, it will be then eligible to apply for a permanent SSI registration.
The Permanent SSI registration will benefit the business unit in the following ways:
- The unit as per the policy stated by the State Government can get Income-Tax immunity and Sales Tax exemption.
- Under the policy stated by the State Government, Incentives and concessions will be provided on power tariffs.
- All the cost and purchase inclination for artifacts produced will be valued.
- On the basis of the prevalent policy, the availability of raw material can be determined.
However, a Permanent SSI registration can only be achieved if certain clauses are satisfied.
- On achieving all the requisite authorization, which can be statutory and/ or administrative, a Permanent SSI registration can be acquired.
- It is mandatory for the entity to not breach any boundaries in existence.
- Proper significance has to be given to plant and machinery within approved limits.
- Moreover, as per announcement, the entity must not be owned, managed or should not be a supplementary of the additional industrial enterprise.
Benefits of SSI Registration
Some of the advantages of SSI registration are as follows:
- Banks along with other noteworthy financial institutions provide certain advantages to SSI. These are generated in form of schemes designed solely for this sector. In addition, since a priority sector lending is involved, the chances of being granted a loan is higher with an interest rate which is not significant. In case of delay in repayment, there lies a policy of favored treatment as well.
- On the basis of the type of business, a scheme is introduced to help the business grow in its initial years, which grants immunity on excise as well as on other specific taxes.
- Certain benefits are provided by the State Governments as well. As per as the MSMED Act, the states who have successfully completed registration gains financial aid on power, taxes as well as access to state-run the industrial domains. A sales tax exemption is available in most states where cost and purchase inclination for artifacts produced is valued.
- In case of Central Government, now and again, they inaugurate schemes, which prove to be beneficial for the MSMEs. One such scheme is the credit guarantee scheme. The main purpose of Credit Guarantee Scheme or CGTMSE, as we call it, is to guarantee credit and input of revenue from a variety of sources, which will ultimately promote small-scale industries and help them flourish.
One of the most effective ways to prove the authenticity of a business is by Bar Coding. This contributes to the well-timed and precise circulation of information about merchandise by electronic means. The Ministry of MSME in order to promote the competitiveness of small-scale industries in domestic as well as the international market place offers financial support for acquiring Bar Coding on merchandise.
In conclusion, “SSI Registration online” can prove beneficial in many ways. It is a crucial step towards the materialization of small-scale industry.