The medium and small-scale industries are given many benefits by the government for which they need to obtain SSI registration certificate. In this guide by H&R Block India, we will talk about the MSME and SSI registration process and benefits of registration.
The small scale sector has acquired a prominent place in the socio-economic development of the country since independence. And since then the government has been trying to promote these small and medium scale industries. MSME or SSI registration was introduced to maintain the records of these enterprises so that the incentives and the supports can be targeted. Also, the SSIs were given special roles for creating additional employment with low capital investment. Let us learn the benefits of the scheme, how to register and who can register.
The main aim is to uplift and promote the Small and Medium Enterprises. Certain benefits are offered to such registered MSMEs. The objectives of the scheme are listed below:
For manufacturing industries:
|Type of Industry||Investment (in Plant & Machinery)|
|MICRO||Up to ₹ 25 Lakhs|
|SMALL||Up to ₹ 5 Crores|
|MEDIUM||Up to ₹ 10 Crores|
For service industries:
Type of Industry
|Investment (in equipment excluding land & building)|
|MICRO||Up to ₹ 10 Lakhs|
|SMALL||Up to ₹ 2 Crores|
|MEDIUM||Up to ₹ 5 Crores|
The enterprises which are registered under the scheme are eligible for certain benefits provided by the government. These are:
Step:1 Apply for Provisional Registration
This certificate helps the newly established business to obtain loan under priority sector lending. The certification also helps obtain facilities for accommodation, land and other approvals, various necessary NOCs and clearances for Pollution Control, Labour Regulations, etc .
Step:2 Starting the Business
Step: 3 Applying for Permanent SSI Registration
[ Read: Tax Filing Tips for Small Businesses ]
The registered SSI units shall be liable for de-registration in the following cases:
1. Is it compulsory to have SSI registration?
Ans. It is mandatory for a Medium enterprise engaged in the manufacture or production of goods to get registered under the MSMED Act.
However, for other enterprises it is optional.
2. What is priority sector lending?
Ans. It includes only those sectors that impact the large section of the population, the weaker sections and the sections which are employment intensive such as agriculture and Micro and Small Enterprises. The government wants to promote these sectors so these sectors are accorded priority status in lending money by the financial institiutions.
3. What is the difference between MSME Certification and SSI Certification?
Ans. As such there is no difference between MSME and SSI registration. The MSME registration was earlier known as SSI registration.
4. How much time does it take to get SSI registration?
Ans. MSME Registration can be obtained in as less as one day using the online mode of registration at https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx.