How to get Online SSI Registration
SSI Registration or Small Scale Industry Registration is a registration from the Ministry of Micro, Small and Medium Enterprises. Once a business obtains SSI registration, the business becomes eligible for a number of schemes and subsidies promoted by the Government to boost small businesses in India. In this article, we look at the process of obtaining SSI registration online or offline.
SSI Registration Overview
SSI Registration or Small Scale Industry Registration or Small Business Registration are all the same as MSME Registration in India. SSI Registration is provided by the Ministry of Micro, Small and Medium Enterprises through the Directorate of Industries of the State Government. The main purpose of SSI registration is to maintain statistics and a roll of SSI businesses in India for the purposes of providing incentives and support services.
Each of the State Government has adopted the uniform registration procedures as per the MSME guidelines. However, some states have made modifications to the procedures for obtaining SSI Registration. Therefore, the procedure for obtaining registration would vary from State to State.
SSI Registration Eligibility Criteria
SSI registration can be obtained by both manufacturing units and service rendering enterprises. However, the registration eligibility criteria differ for SSI units in manufacturing and SSI units in service rendering as follows:
SSI registration can be obtained for manufacturing units if the investment in plant and machinery (excluding land & buildings) is within any of the following levels:
- Micro Enterprises: Investment of up to Rs.25 lakhs in plant and machinery
- Small Enterprises: Investment of up to Rs.5 crores in plant and machinery
- Medium Enterprises: Investment of up to Rs.10 crores in plant and machinery
SSI registration can be obtained for service rendering units if the investment in equipment (excluding land & buildings) is within any of the following levels:
- Micro Enterprises: Investment of up to Rs.10 lakhs in equipment
- Small Enterprises: Investment of up to Rs.2 crores in equipment
- Medium Enterprises: Investment of up to Rs.5 crores in equipment
Benefits of obtaining SSI Registration
SSI registration is not a mandatory requirement for a small business in India. However, businesses that have SSI registration can avail some benefits, incentives or support given either by the Central or State Government. Some of the incentives offered for SSI businesses include:
- Priority sector lending in Banks
- Reduction in bank loan interest rate
- Excise exemption scheme
- Exemption under direct tax laws
- Statutory support such as reservation
- Interest on Delayed Payments Act
In addition to the above-mentioned benefits provided by the Central Government, States Governments and Union Territories have implemented their own package of facilities and incentives for SSI units. Typical SSI benefits relate to the development of industrial estates, tax subsidies, power tariff subsidies, capital investment subsidies and other support. Both the Centre and the State Government subsidies aimed at small businesses are provided only to those businesses having SSI registration.
How to get Online SSI Registration in India
The process for getting SSI registration varies from state to state. However, many of the states have the following three steps in common while proving SSI registration.
Step 1: Provisional SSI Registration
To obtain SSI registration the business must first apply for Provisional SSI Registration Certificate (PRC). Provisional Registration Certificate is given when the unit is in a pre-operative period and helps the SSI unit obtain term loans and working capital from financial institutions/banks under priority sector lending. In addition to helping obtain a bank loan, the provisional SSI registration certificate also helps the business obtain facilities for accommodation, land, other approvals etc. and obtain various necessary NOCs and clearances from regulatory bodies such as Pollution Control Board, Labour Regulations etc.
Provisional SSI registration can be applied for by a business at any time and an industrial license is not required. Once an application is made for Provisional SSI registration, the provisional registration is provided and no field enquiry is done. Provisional SSI registrations are valid for five years and if the entrepreneur is unable to set up the unit in this period, a fresh application for provisional registration can be made at the end of five years period.
Step 2: Start the Business
Start the business with the provisional SSI registration certificate. Commence activity or production.
Step 3: Permanent SSI Registration
Once the business commences production or activity, the business can apply for and obtain permanent SSI registration. Obtaining permanent SSI registration will help the business obtain the following benefits:
- Income-Tax exemption and Sales Tax exemption as per State Government Policy
- Incentives and concessions in power tariff as per State Government Policy
- Price and purchase preference for goods produced
- Availability of raw material depending on existing policy
Permanent SSI registration will be provided only if the following conditions are satisfied by the SSI unit: i) the unit has obtained all necessary clearances whether statutory or administrative, ii) the unit does not violate any restrictions in force, iii) value of plant and machinery is within prescribed limits and iv) the unit is not owned, controlled or subsidiary of any other industrial undertaking as per notification.
Online SSI Registration in India
Online SSI Registration can be obtained through IndiaFilings.com in many of the states. IndiaFilings can help you obtain MSME registration is mostly 10 to 20 days, subject to State Government processing time.