How to take SSI Registration and MSME Registration online?
What is SSI?
Small Scale Registration is otherwise called SSI Registration. This is a kind of registration done by the Ministry of Micro, Small and medium sized enterprises. After obtaining SSI registration, the business turns qualified for all schemes and financial assistance endorsed by the Government to improve small trades in India. The prime intention for SSI registration is to sustain with statistics and to provide support and incentives services. The method and procedure traits for obtaining SSI registration vary from State to State. Nevertheless, most of the companies follow three steps in common while providing SSI Registration. The process of doing online SSI Registration is as follows:
Stage 1: Provisional SSI Registration
To acquire SSI Registration, the company should apply primarily for the Provisional SSI Registration Certificate (PRC). PRC will be given only when the establishment is in the pre-operative period and supports the SSI unit to obtain term loans and working capital from the banks and other financial organizations under precedent sector lending.
The PRC also supports the business in obtaining facilities of housing, land and other approvals. It also helps in obtaining mandatory NOCs and clearances from Labor Regulation, Pollution control Board such regulatory bodies.
At any time, a business can apply for PRC for which industrial license is not required. Once the application is shot for Provisional SSI registration, the same will be provided without any field inquiry. Provisional application has the validity for five years. If the business is not able to set up the unit within 5 years, then another fresh application for PRC can be made at the completion of the first five years.
Stage 2: Begin the Business
You can commence the unit activity or production with the help of the Provisional SSI Registration Certificate.
Stage 3: Permanent SSI Registration
Once the Unit starts its activity or production, it can apply for Permanent SSI Registration Certificate. Having a Permanent SSI Registration Certificate helps the business to get the following benefits:
- The business can get a preference on purchase and price for the produced goods.
- Depends on the existing policy the entrepreneur can look out for the raw material availability
- The business can have Income and Sales Tax Exemption as per the State Government Policy
- Concession in the power tariff will be provided as per the State Government Policy
A business is eligible to obtain the Permanent Registration Certificate if it satisfies the following conditions:
- The Unit should not breach any restrictions
- The Unit should have obtained all mandatory clearances whether administrative or statutory
- The value of the machinery or plant should fall within the prescribed limits
- The Unite should not be owned, controlled by any other industrial undertaking as per the announcement.
What is MSME?
MSME acronym can be expanded as Micro, Small & Medium Enterprises. MSME industries are being the backbone of a nation’s economy as such the developing country India.
In India, over 45% of total industrial employment is contributed by MSME. Other than that 50% of exports, 95% of industrial units, over 6000 kinds of products are manufactured in MSME industries. If the industries grow, automatically the nation’s economy grows. Though the MSME registration is not mandated by the Government, yet it is beneficial to an entrepreneur to register his business as there are lots of schemes such as taxation, loans and credit facilities are availed to the registered ones. There are two classifications in the MSME and they are manufacturing enterprise, service enterprise.
The process of doing MSME online registration:
- MSME online registration can be done by filling a single form through online.
- Individual registration shall be enacted if a person wants to register more than one industry
- Personal Account Number (PAN), Aadhar Card, Name of the Industry, Address, Bank account details etc are required for the online registration.
- Self-certified certificates shall be provided by the concerned
- After filling the details the same has to be uploaded so that the person will get a registration number.
For the first 5 years, Provisional registration is provided. During this period, the business can get loans from banks, apply for various NOCs etc. Once the business commences its workflow, it could apply for a permanent registration.
The benefits of MSME registration are tax benefits, bank benefits, Government benefits, Credit guarantee scheme.