SSI/MSME Registration

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 compulsory but very usefulbecause itoffers various benefits like priority sector lending, excise and direct tax exemptions, capital investment subsidies and power tariff subsidies.

Manufacturing enterprises must have investment of less than Rs.10 crores in order to qualify as MSME. Whereas, service enterprises must have investment of less than Rs.5 crores. If any enterprise exceeds this investment limit, they have to cancel their registration under the MSMED Act.

6 Essential Facts on SSI/MSME Registration

• What is an SSI/MSME Registration?
  Small Scale Industries (SSI) or Micro, Small and Medium Enterprises (MSME) can register themselves under the MSMED Act. It isn't compulsory but very useful because it offers various benefits like priority sector lending, excise and direct tax exemptions, capital investment subsidies and power tariff subsidies.
  Manufacturing enterprises must have investment of less than Rs.10 crores in order to qualify as MSME. Whereas, service enterprises must have investment of less than Rs.5 crores. If any enterprise exceeds this investment limit, they have to cancel their registration under the MSMED Act.

• Is SSI/MSME Registration voluntary or mandatory?
  It isn't mandatory but very useful because it offers various benefits like priority sector lending, excise and direct tax exemptions, capital investment subsidies and power tariff subsidies.

• Why should I apply before commencing operations?
  You should apply before commencing operations becausea Provisional SSI Registration Certificate (PRC) will be given to you. This PRC will allowyour enterprise to get term loans and working capital under priority sector lending. It will also make it easier to obtain various NOCs and clearances from regulatory bodies like Pollution Control Board.

• What documents are required for the application?

  • 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 required. Every other enterprise must get it for PRC application.
  • All statutory and administrative clearances need to be obtained such an NoC from pollution board.

• What are the advantages of SSI registration?
  The advantages of SSI registration are cheaper bank loans, easy access to credit, quicker approvals from state and central government bodies, tax rebates, cheaper infrastructure, including electricity and VAT exemptions.

• When will your registration be cancelled?
  If any enterprise with an SSI Registration does not follow regulations laid by the government will be deregistered. Manufacturing enterprises must have investment of less than Rs.10 crores in order to qualify as MSME. Whereas, service enterprises must have investment of less than Rs.5 crores. If any enterprise exceeds this investment limit, they have to cancel their registration under the MSMED Act.

What You Need to Know

SSI/MSME Registration Process

• You have to submit to us all the required documents mentioned above.
• Your application will be filed with the relevant state office. As the process is different in each state, so you may need to submit some additional documents.
• A provisional certificate (in case the unit has not commenced production)valid for five years will be issued to you. A permanent certificate will be issued when your plant starts its operations.