Eligibility for MSME/SSI registration in India


Business visionaries look for a permit to get their company recognized by the government when they first start out. The MSME (Micro, Small and Medium Enterprises) or SSI (Small Scale Industries) registration is one of the less difficult enlistments to obtain. Businesses benefit from this registration in a variety of ways.

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What are the advantages of MSME registration?

There is no legal foundation for the registration intentions. Businesses frequently enlist in order to take advantage of specific benefits. The national or state governments fund the motivating forces. The following are some of the advantages provided by the federal government:

a. Lending to priority sectors or at a lower interest rate

b. Exemption from excise

b. Direct tax exemption

d. Legal aid, such as the Interest on Delayed Payments Act and the Reservation Act.

e. States/UTs provide their own set of facilities and incentives for small businesses. They recognize the potential for growth in these businesses and offer various subsidies and sponsorships, as well as lower power tariffs, capital investment rebates, and other assistance. Both the center and the state, whether by law or otherwise, focus on their incentives and goals with packages often given to units enrolled with them.

What are the registration scheme’s key goals?

a. Maintain a steady pace and keep track of the small industries targeted for incentives.

b. To issue a certificate that allows organizations to benefit from incentives, mainly in terms of security.

c. To assist in the gathering of data and statistics.

d. To assist in the formation of nodal focuses at the national, state, and local (District) levels in order to progress SSIs.

Eligibility for MSME registration:

Micro Enterprises: Micromanufacturing businesses invest less than Rs. 25 lakh in plant and machinery, whereas micro service businesses invest less than Rs. 10 lakh in resources.

Small Enterprises: Small manufacturing companies may invest anywhere from Rs. 25 lakh to Rs. 5 crores in plant and equipment, while small service companies may invest anywhere from Rs. 10 lakh to Rs. 2 crores in hardware and equipment.

Medium Enterprises: Medium manufacturing companies may invest between Rs. 5 crore and Rs. 10 crores in plant and equipment, whereas medium service companies may invest between Rs. 2 crore and Rs. 5 crores in hardware and equipment.

Land and buildings, on the other hand, cannot be included in the total investment for manufacturing ventures. The original cost of the hardware, plant and machinery is also taken into account; depreciation is not taken into account.

Any business, whether a partnership, corporation or single proprietorship, can apply for this registration.

What is the registration procedure?

The following are the highlights of the current strategies:

1. For something that does not require industrial authorization, a unit can apply for a PRC (Permanent Registration Certificate). This includes the items listed in Schedule-III as well as those not listed in Schedule-I or Schedule-II of the licensing Exemption Notification. Units with fewer than 50/100 specialists, with or without power, are eligible to apply for registration for the items listed in Schedule II.

2. Unit completes the approved application structure for a Permanent Registration Certificate or PRC. There is no field investigation and the PRC is issued.

3. The PRC has a five-year validity period. If the business visionary is unable to establish the unit within this time, he may reapply at the end of the five-year period.

4. The unit must apply for a permanent license on the approved form once it commences production.

The assessment is based on the following form:

1. The unit must get all necessary statutory or regulatory clearances. A drug license permit under the drug control order, if necessary, a NOC from the Pollution Control Board, and so on.

2. At the time of assessment, the unit does not damage any locational power constraints.

3. The plant and machinery estimations are within the prescribed range.

4. According to the notification, the unit is not possessed, controlled, or a backup of any other industrial venture.

What is the significance of a Provisional Registration Certificate (PRC)?

Because the PRC expires at the end of five years, you may reapply if the unit isn’t yet operating or if it exceeds the MSMED Act’s speculative restrictions. You can apply for a Permanent License once you begin manufacturing.

What are the factors that aren’t considered an investment?

For registration, the total cost of plant and machinery for manufacturing firms should be up to Rs. 25 crores, and for service-based businesses, it should be up to Rs. 10 crores. The cost of land and construction will not be factored into the total investment when calculating this figure. The original cost of the machinery, plant, and equipment is also taken into account. Depreciation cannot be factored into the equation.

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How does SSI/MSME assist in obtaining a bank loan?

MSMEs are recognized by all banks and NBFCs, and they have unique plans in place for them. This usually includes priority sector lending, which means that your firm has a high chance of being approved for a loan. Interest rates will also be cheaper. In the event of late payment, special consideration may be given.


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