To strengthen the stance of Micro, Small and Medium Enterprises (MSMEs),
the government brought out the system for registration under the NSIC. NSIC stands for National
Small Industries Corporations. Any MSME that register’s under this scheme would receive the
benefits allied to government purchases.
Any MSME which is registered under this system should consider the Single Point Registration System (SPRS). Through this system, different benefits can be availed by the MSME. An official order brought out this system of Single Point Registration under the Public Procurement Policy for Micro & Small Enterprises (MSEs) Order 2012.
Through this scheme, MSMEs can avail different forms of government benefits and foster growth and development in different sectors. There are different forms of schemes under the system of NSIC. These schemes would include the Single Point Registration System, the Credit Rating Scheme, and Marketing Schemes. All MSMEs which register with the NSIC would secure the benefits of all the available schemes.
NSIC was established in the year 1955 as a form of Public Sector Undertaking. The
NSIC is prominently known as a Mini Ratna Public Sector Undertaking.
This NSIC is an ISO 9001-2015 government-certified undertaking which has some form of quality standards. With the view of uplifting the MSME sector, this institute was established. NSIC promotes credit facilitation for MSMEs.
The following are the objectives of NSIC registration:
One of the main aims of NSIC registration is providing different forms of allied benefits to MSME and SSI. Any MSME or SSI can claim different forms of incentives and schemes through this registration.
By registering under the NSIC, MSMEs can avail benefits to secure machinery such as equipment based on hire purchase. This system can be carried out with minimum formalities through the NSIC registration.
By utilising the SPRS, MSME can secure government purchases and tenders. Apart from this, MSMEs would be notified regarding any tender.
Through this scheme, MSMEs can participate freely in government contracts and tenders. Without registration, MSMEs would have to consider opting to participate in this system.
NSIC system also supplies a different form of raw materials to MSME and small scale
Hence it is worthwhile to register under National Small Industries Corporation.
MSME and Small Scale Industries can avail different forms of benefits through NSIC registration:
MSMEs registered under this scheme can receive the benefits of taking part in International trade and different forms of conventions of the government. Small Scale Industries would be notified the same regarding this.
MSME registered under the NSIC system would receive advantages of world-class technology. Digitization would be introduced to MSME and technological developments can be learned through these exhibitions.
Apart from this, MSME/SSI would be invited to other exhibitions.
As there is the promotion of entrepreneurship at a national level, the NSIC contributes to skill development amongst different individuals who are taking part in the development of MSME.
All MSME and SSI registered under this scheme are exempted from the requirement of depositing some form of earnest money.
The following criterion has to be satisfied with NSIC registration:
All Micro, Small and Medium Enterprises or any other entity which is registered under the MSMED Act, 2006 can register under the NSIC system. Even Small Scale Industries (SSI) can register under this scheme.
MSMEs which have just begun activities also can take part in this scheme. However, such entities must not have any audited balance sheet for one year. Such entities can apply for provisional registration with the authority.
NSIC registration is beneficial for all entities which are engaged in carrying out different activities
under the small scale industries sector. The main regulatory authority for NSIC is the Ministry of
Micro, Small, and Medium Enterprises (M/o MSME).
The NSIC is a form of special public sector undertaking under this act. The MSMED Act, 2006 regulates MSME. The NSIC is regulated under the Public Procurement Policy for Micro & Small Enterprises (MSEs) Order 2012.
Different schemes are introduced under the NSIC. The following are the schemes that are beneficial for MSME and SSI:
Under the credit facilitation scheme, the competency and the ability to pay back loans are determined. This is usually carried out by an independent third-party. Through this scheme, Msme’s credit rating can be secured and qualified.
Under this scheme, financing options are provided to MSME for procuring raw materials at concessional rates. Through this scheme, MSMEs can concentrate on manufacturing services which are more crucial to the sustenance of the business.
Registering under this system allows seamless facilitation when it comes to procurement and purchase of materials under government schemes. Apart from this units which are registered under this scheme are exempted from providing any form of Earnest Money Deposit under the scheme.
With the increase in international competition, information is crucial to be ahead of other competitors. Hence under this scheme, information-based services and news is provided to MSMEs. Through this system, MSMEs and other entities can develop their services to stay ahead in times of competition.
Through this scheme of NSIC, all enterprises which are run by SC and ST would be empowered to take part in government initiatives. Through this process, there can be an improvement in the response of different forms of MSME.
Apart from securing government procurement through NSIC registration, MSMEs and SSI secure the benefits of marketing such materials and products. Hence through government incentives offered through this scheme procurement-based activities can also be promoted. Marketing initiatives are developed through this system.
Under this scheme of NSIC infrastructural development and support are provided to all SSI and MSME at a national level. Infrastructural support would also include improving the overall infrastructure of the systems utilized by SSI and MSME.
Hence, an MSME can secure the above benefits by using the facilities provided by the above schemes.
The following procedure has to be considered for NSIC registration by an MSME or SSI:
An applicant can utilize the online registration process for NSIC registration. First and foremost the applicant has to go online
Usually, it is more convenient to utilize the system of online registration. However, an applicant can also consider the system of offline registration. This application can either be downloaded through the website or can be got through the NSIC office. Usually, the NSIC office would be present in every district or zonal branch. The applicant must click on download GP for the application. After the registration is carried out the requisite fees have to be paid to the department.
The fees for registration has to be paid online.
After this, the scanned copies of all the documents must be uploaded online. Along with this certificate, the proof of the inspection report must also be submitted to the authority.
In the final step, the application must be submitted online. The authority will inspect the application and if all meet the requirements, then the SPRS certificate would be provided. When issuing the SPRS the inspection report will be utilized for the process.
The following procedure is required for offline registration:
The applicant is required to either download the form online or secure the same from the respective office. After downloading the form, the applicant has to print the same.
The applicant has to fill the form with all information as required.
After this process, the SSI or MSME is required to submit the form. Along with the form, reports have to be submitted to the district, branch, or the zonal office of the NSIC.
After the form is filled the same has to be filed with the inspection office. Along with this other forms of reports have to be submitted. This is required to be submitted within a specific period of time to ensure that the process of inspection of the MSME premises is completed.
In the final step, the NSIC will grant the certificate of registration (GP certificate. However, this certificate would only be granted if there is a positive report after the inspection of the premises.
LegalRaasta was founded on the principle that sophisticated legal and taxation services should be simple, modern, and inexpensive. We can serve our clients more efficiently thanks to cutting-edge practise technology.