The main purpose of Registration is to maintain statistics and maintain a roll of such units for the purposes of providing incentives and support services.
Benefits of Registering
The registration scheme has no statutory basis. Units would normally get registered to avail some benefits, incentives or support given either by the Central or State Govt. The regime of incentives offered by the Centre generally contains the following:
– Credit prescription (Priority sector lending), differential rates of interest etc.
– Excise Exemption Scheme
– Exemption under Direct Tax Laws.
– Statutory support such as reservation and the Interest on Delayed Payments Act.
(It is to be noted that the Banking Laws, Excise Law and the Direct Taxes Law have incorporated the word SSI in their exemption notifications. Though in many cases they may define it differently. However, generally the registration certificate issued by the registering authority is seen as proof of being SSI).
States/UTs have their own package of facilities and incentives for small scale. They relate to development of industrial estates, tax subsidies, power tariff subsidies, capital investment subsidies and other support. Both the Centre and the State, whether under law or otherwise, target their incentives and support packages generally to units registered with them.
Setting Up Micro,Small or Medium Enterprise
|1.||Memorandum is to be filed with the Regional Industries Centre / District Industries Centre by a Micro,Small or Medium Enterprise as the case may be under subsection(1) of section 8 of the Micro,Small & Medium Enterprises Development(MSMED) Act,2006.|
|2.||There is no fee for processing the memorandum.|
|3.||Existing units should fill up only Part II of the memorandum.|
|4.||In case of any change in the information,at any point of time,please inform the details within three month to RIC/ DIC.|
|5.||Fill up whichever is applicable.|
|6.||All codes other than pin code shall be filled by the RIC/DIC.|
|7.||Form number will be system generated .|
|8.||Enclose a self-certified copy of Power of Attorney/Board Resolution/Society Resolution,whereever applicable,while signing as Partner/Managing Director or Authorised person, etc.|
|9.||Enclose a certified/notarized copy of the Partnership Deed, Memorandum of Association and Articles of Association certificate.|
|10.||For registration purpose the enterpreneur must be ready with the following:|
|a) Scanned copy of Identity Proof: Any one of Voter Id / Pancard /Adhar Card / Bank Passbook(first page with photo) / Driving Licence .|
|b)Scanned Copy of full signature of the enterpreneur filing this Memorandum.|
|c) Valid E-mail Id and Mobile number.|
Procedure for SSI registration
Features of the present procedures are as follows:
- A unit can apply for PRC for any item that does not require industrial license which means items listed in Schedule-III and items not listed in Schedule-I or Schedule-II of the licencing Exemption Notification. Units employing less than 50/100 workers with/without power can apply for registration even for those items included in Schedule-II.
- Unit applies for PRC in prescribed application form. No field enquiry is done and PRC is issued.
- PRC is valid for five years. If the entrepreneur is unable to set up the unit in this period, he can apply afresh at the end of five years period.
- Once the unit commences production, it has to apply for permanent registration on the prescribed form.
The following form basis of evaluation:
- The unit has obtained all necessary clearances whether statutory or administrative. e.g. drug license under drug control order, NOC from Pollution Control Board, if required etc.
- Unit does not violate any locational restrictions in force, at the time of evaluation.
- Value of plant and machinery is within prescribed limits.
- Unit is not owned, controlled or subsidiary of any other industrial undertaking as per notification.