How to get Online SSI Registration

Overview

Small-scale Industry (SSI) Registration or Small business Registration are almost similar to MSME Registration in India. It is provided by the Ministry of Micro, small, and Medium Enterprises through the Directorate of Industries of the State Government. One of the main purposes of SSI Registration is to maintain statistics and a roll of SSI businesses in India with the motive of providing incentives and support services. The State government has adopted the uniform registration procedures under the MSME guidelines. Although, some states have made modifications to the procedures for obtaining SSI Registration. Hence, its procedure may vary from one state to another. This article will focus on the process and requirements for SSI in India. Read more: Importance of MSME in India

SSI Registration Eligibility Criteria

For SSI Registration, there are two methods whether by manufacturing units or service-rendering enterprises. However, the registration criteria differ for SSI units in manufacturing and SSI units in service rendering as follows: In manufacturing unit, SSI Registration is allowed only when the investment in plant and machinery (excluding land & buildings) is within any of the following levels:

• Micro Enterprises: If an investment is up to Rs. 25 lakhs in Plant and Machinery
• Small Enterprises:  If an investment is up to Rs. 5 crores in Plant and machinery
• Medium Enterprises: If an investment is up to Rs. 10 crores in Plant and machinery

In Service Rendering Units, SSI Registration is allowed only when the investment in equipment (excluding land & buildings) is within any of the following levels:

• Micro Enterprises: If an investment is up to Rs. 10 lakhs in equipment
• Small Enterprises: If an investment is up to Rs. 2 crores in equipment
• Medium Enterprises: If an investment is up to Rs. 5 crores in equipment

Advantages of SSI Registration

It is not a mandatory requirement for a small business in India. But, the businesses which are being carried forward having SSI Registration can avail some advantages, incentives or some support given either by the Central or State Government. Following are the incentives that can be offered to SSI Business—

1. Priority sector lending in Banks
2. Reduction in bank loan interest rate
3. Excise exemption scheme
4. An exemption under direct tax laws
5. Statutory support such as reservation
6. Interest on Delayed Payments Act

With the above-mentioned advantages provided by the central government, States Governments and Union Territories have implemented their own package of facilities and incentives for SSI units. SSI contributes to the development of industrial estates, Tax subsidies, power tariff subsidies, capital investment subsidies, and other support. The subsidies will be provided to those businesses only who is having SSI Registration by the Centre and State government.

How to get Online SSI Registration in India

The procedure for registration of small-scale industries can vary from state to state. So, many states generally have three steps in common while proving registration. These are given below: Step 1. Provisional SSI Registration: The Provisional SSI Registration Certificate is the first and foremost thing to be obtained. When the unit is in a pre-operative period and helps the SSI unit to obtain term loans as well as capital from financial institution then only the Provisional Registration certificate is given. Further, this certificate also helps the business to obtain facilities for accommodation, land, other approvals etc. Through this, a business can obtain various necessary NOCs and clearances from regulatory bodies such as the Pollution Control Board, Labour Regulations etc. Provisional SSI Registration can be applied anytime by a business even industrial license is not required. Once an application is made, the provisional registration is provided and no field inquiry is done. It is valid for five years and if the entrepreneur is unable to set up the unit in this time period then a new application for provisional registration can be made at the end of five years. Step 2.  Start the Business: You can commence activity or production by getting a Provisional SSI Registration. Step 3.  Permanent SSI Registration: As soon as the business commences production or activity then the business can apply for and obtain permanent SSI Registration. Permanent SSI Registration can help you by the following ways:

• 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

Conditions to obtain Permanent SSI Registration by the SSI unit:

1. The unit has obtained all the required clearances whether statutory or administrative
2. The unit does not violate any restrictions in force
3. Value of plant and machinery must be within the prescribed limits
4. The unit is not owned, controlled or subsidiary of any other industrial undertaking as per notification.

For further more information Company registration, MSME Registration you can visit our website: Legal Raasta Give us a call at 8750008585 and you can send your query on Email: [email protected]