Small scale industries, abbreviated as SSI, are those in which manufacturing, production, and service delivery are done on a small or micro size.
The Indian government (GOI) is attempting to encourage these small-scale enterprises in order to create job possibilities in distant locations with little capital investment. Businesses with SSI Registration are given priority for government licences and certification, as well as easy access to finance.
In this post, we will look at the SSI units’ features, goals, benefits, and registration process.
A Quick Overview of the SSI and SSI Registration –
Small Scale Industries are those that make items and provide services using small machinery and a small staff. SSI firms with less than INR 10 million in plant and machinery should seek registration from the Director of Industries of their respective State Government.
The major goal of SSI registration is to keep track of the SSI units that are active in India and to provide incentives and support services to these units. A “SIDO (Small Industries Development Organization) Registration Scheme” and a “State Registration Scheme” are also available in some states.
Here is a list of industries that use the SSI units:
- Leather Belt for Water Bottles
- Toys for children
- Bags made of paper
- Bakeries, among other things.
What are the advantages of registering for SSI?
After registering as an SSI unit, these small scale enterprises can get advantages, incentives, or assistance from either the federal or state governments. The incentive regime includes the following:
- Credit Prescription, Interest Rate Differential
- Scheme for Excise Exceptions
- Direct Tax Laws Exemption
- Statutory aids such as Reservation and Interest on Delayed Payments, for example.
What are the SSI Registration Scheme’s Goals?
- To identify and keep track of the small industries for whom the package of incentives and supports is intended.
- The SSI Registration Scheme issues a certificate that entitles the units to statutory protection.
- It offers statistics on the SSI units that are active in India.
- It intends to establish nodal centres at the national, state, and district levels to promote SSI.
Read our article: Udyam Registration Form
What Characteristics Characterize the SSI Registration Scheme?
The DIC (District Industries Centre) is the principal registration Centre under the SSI Registration Scheme.
Furthermore, registration is not required. It is a completely voluntary procedure.
In all states, there are two types of registration. After the start of production, a Provisional Certificate is issued, followed by a Permanent Registration Certificate.
The PRC (Permanent Registration Certificate) is typically valid for five years, with permanent registration granted in perpetuity.
What exactly is a Permanent Registration Certificate (PRC)?
The Permanent Registration Certificate is a provision made available to SSI units prior to the start of a company or service. It enables the unit to access term loans and operating capital from financial institutions and banks as part of the priority sector lending programme.
After getting the PRC, you will be able to access accommodations, land, and other amenities. You can also get numerous NOCs and approvals from regulatory agencies such as the Pollution Control Board, Labor Regulation, and so on.
What advantages do SSI units have now that they have the PRC?
- According to state government regulation, SSI units are free from income tax and sales tax.
- Power tariff incentives and discounts are available to SSI units.
- For items produced, the SSI units receive pricing and purchasing preference.
- Raw resources are readily available.
The advantages of getting SSI registration Tax breaks for SSI units.
- The MAT (Minimum Alternate Tax) credit is available to SSI units for a period of up to 15 years. Previously, the period was only ten years.
- Many government tenders are readily obtained by them.
- After receiving the SSI registration, the SSI units have simple access to finance.
- The cost of obtaining a patent and establishing an industry is reduced since various discounts and reductions are available after obtaining SSI registration.
- Businesses with SSI registration are given priority for government licences and certification, as well as easy access to finance.
What documents are necessary to acquire the SSI Registration Certificate?
Document Checklist for Obtaining the SSI Registration Certificate:
- Aadhar card number
- Bank account information.
- Proof of the company’s name and address
- Copies of purchase bills, raw materials and equipment utilised, and so on.
- Partnership agreement, Memorandum of Understanding, and Letters of Agreement
- A photocopy of a legal consent letter from the state’s environmental control committee.
SSI Registration Process
The SSI registration process for a new company on the udyam registration site is very quick and straightforward; simply follow these 5 steps.
Step 1: Navigate to the New MSME Udyam Registration Portal.
Step 2: Complete the application form with all of your information.
Step 3: Make a payment for your online application procedure.
Step 4: If your Udyam registration application is accepted, your business will be registered and you will receive your Udyam certificate.
Step 5: A valid certificate will be sent to your registered email address within 3-4 hours.
The SSI units are the lifeblood of the Indian economy and a major source of employment in emerging nations such as India. They make use of limited technology and resources in smaller workforces. If you want to start your own business and be self-sufficient, you might choose SSI units because they are eligible for many tax breaks and other perks.
Also read: Udyam registration certificate