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Read this comprehensive guide by H&R Block to learn how medium and small scale industries can obtain SSI or MSME registration certificate.

SSI Registration Process

Last Update Date : July 18, 2018

SSI Registration certificate

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.

Objectives of SSI Registration

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:

  1. It aims to enumerate and maintain a roll of small industries to which the package of incentives and support are targeted
  2. The scheme provides a certificate which allows the units to avail benefits of it, mainly in terms of protection
  3. The registration serves the purpose of collection of statistics
  4. Also, it creates nodal centres at the Centre, State and District levels to promote SSI

Eligibility – Who can Register?

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

Benefits – Why to Register?

The enterprises which are registered under the scheme are eligible for certain benefits provided by the government. These are:

  1. Preferential Credit (priority sector lending), differential rates of interest, etc.
  2. Excise Exemption Scheme
  3. Exemption under Direct Tax Laws
  4. Statutory support such as reservation and Interest on Delayed Payments Act
  5. Development of specialized industrial estates
  6. Power tariff subsidies, capital investment subsidies and other support

Process of Registration

Step:1 Apply for Provisional Registration

  • The business needs to apply in the prescribed application form for provisional registration either before its commencement or at the initial stages of its operation.
  • After the application, a provisional registration is granted without any field enquiry and inspection.

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

  • The entrepreneur shall set up and start the business if the provisional certificate for registration has been granted.
  • The certificate of registration is valid for 5 years. If the entrepreneur fails to set up the unit within this period, he should make a fresh application.

Step: 3 Applying for Permanent SSI Registration

  • Once the business start its operations it can apply for permanent registration to Ministry of MSMEs.
  • This registration is granted only if certain conditions specified are satisfied by the Small Scale Industry which are listed.
    • The unit has obtained all the necessary clearances (statutory and administrative).
    • The unit does not violate any regulation or restriction.
    • Value of Plant and Machinery does not exceed the prescribed limits.
    • The unit shall not be owned, controlled or the subsidiary of any other industrial undertaking.

Documents Required

  1. Aadhaar Card Copy: Aadhaar card has been mandated for SSI or MSME registration. In case of private limited companies and partnership firm where it has got no Aadhaar card, the Aadhaar identity of any the partner can be provided.
  2. PAN Card Copy: PAN Card of the authorised person is also required for registration under the scheme.
  3. Other details as required in the form.

De-registration

The registered SSI units shall be liable for de-registration in the following cases:

  1. If it crosses the specified investment limits into Plant and Machinery
  2. If it starts to produce those items which are not listed and which requires any kind of industrial license
  3. If it is owned, controlled or is a subsidiary of any other industrial undertaking
  4. If it fails to comply with any kind of regulation or restriction

Frequently Asked Questions

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.

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