Small-scale industries (SSI) such as bakeries, beauty parlours, and leather bag-making units, are those that manufacture and render services by making a limited investment.
Small-scale industries are crucial to India’s economy because they generate employment and utilise local resources. The government provides a range of schemes and subsidies, and to promote these industries and access them, you must register your SSI.
You can voluntarily register your SSI online or offline to make the most of the incentives offered to this sector.
Read on to know more about SSI registration and how to get it done:
What are the benefits of SSI registration?
Registration is not mandatory for small-scale industries. You can obtain an SSI certificate of registration voluntarily. Several benefits come your way when you register. These include:
- Reduced bank loan interest rates
- Easy access to credit
- Access to government tenders
- Concessions and rebates that reduce the cost of acquiring patents
- Preference for government certification and licence
- State government incentives
What are the eligibility criteria for SSI registration?
Micro and small-scale industries are segregated based on the investment involved by the Ministry of Micro, Small and Medium Enterprises. There are two types of small-scale industries: service and manufacturing.
SSI registration can be obtained for any of these categories.
- Micro: The investment in plant and machinery does not exceed Rs. 25 lakh
- Small: The investment in plant and machinery exceeds Rs. 25 lakh but not Rs. 5 crore
- Medium: The investment in plant and machinery exceeds Rs. 5 crore but not Rs. 10 crore
- Micro: The investment in equipment does not exceed Rs. 10 lakh
- Small: The investment in equipment exceeds Rs. 10 lakh but not Rs. 2 crore
- Medium: The investment in equipment exceeds Rs. 2 crore but not Rs. 5 crore
What is the registration process for small-scale industries?
The process differs from state to state. However, there are three broad steps:
- Applying for a provisional registration
This SSI certificate is given to units in the pre-operative period to help them secure working capital. Once a firm applies, provisional registration is provided without a physical inspection
- Starting the business
The provisional certificate is valid for five years, and you must ensure that your enterprise becomes operational at this time
- Applying for a permanent SSI certificate of registration
If your enterprise becomes operational within five years, you can apply to the Ministry of MSMEs for a permanent certificate
Thanks to Udyog Aadhaar, the SSI registration process does not involve a lot of paperwork these days. Fill out the Entrepreneur Memorandum instead of 11 different forms to get started.
What are the documents required for SSI registration?
Documents required for the registration of SSI include:
- Proof of business address
- Purchase bill copies of raw materials, machinery and so on
- Partnership deed/ AoA and MoA
- NOC from the pollution control committee
SSI registration is a process that gives you access to schemes and financial offerings that can take your business up a notch. Without a viable incentive, you can still improve your small-scale manufacturing business or service unit by opting for Bajaj Finserv’s Business Loan. It offers you funding of up to Rs. 20 lakh on a collateral-free basis.
You can apply for it with just two documents, and you get approval within 24 hours. You can also opt for a Flexi loan to withdraw from your sanction multiple times, as the need arises.
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