Small Scale Industry registration is an enrolment under the Ministry of Micro, Small and Medium Enterprises, Government of India. By registering as an SSI your business becomes eligible for various benefits and incentives. This includes priority sector lending in banks, reduced interest rates for SME loans, excise and direct tax benefits, and interest on Delayed Payments Act and so on. Here’s what you should know about it:
Who can apply for SSI registration?
To register for the SSI registration, your business has to be eligible under the investment and turnover criteria defined by the Ministry of MSME.
- Micro enterprise – Investment not exceeding Rs. 1 crore in plant and machinery or equipment, and turnover not exceeding Rs. 5 crores.
- Small enterprise – Investment not exceeding Rs. 10 crores in plant and machinery or equipment, and turnover not exceeding Rs. 50 crores.
- Medium enterprise – Investment not exceeding Rs. 50 crores in plant and machinery or equipment, and turnover not exceeding Rs. 250 crores.
The registration stages
The three basic phases of SSI registration are,
Apply for a provisional SSI registration during the pre-operative period of the business. Physical inspection of the business is not involved in this stage. This certification helps businesses to arrange their capital through a business loan or other means, by showing this registration as one of the business documents.
The provisional certification remains valid for five years. In the second phase, you have to start your business during these five years. Arranging a business loan, setting up the physical location, and becoming operational happens during this stage.
The permanent SSI registration can be done once your business becomes functional during the five years after the issuance of the provisional certificate. With the Udyog Aadhaar regime, SSI registration has become a simpler process that can be carried out online with the MSME ministry.
The registration process
To carry out the SSI registration process you need documents including,
- Proof of address for your business
- Invoices of raw materials, machinery, equipment etc.
- Partnership or AoA/MoA, for partnerships and companies respectively,
- NOC from the pollution control committee
Udyam registration, as SSI registration is also known, can be carried out by filling the application form on the Udyam registration website. Many third parties also provide the registration as service. A registration fee needs to be paid, after which the application form can be submitted online. The application is processed by the Ministry personnel, and once approved, the SSI certificate is sent to you over email. A permanent registration number is generated, and the registration remains valid for life.
This registration gives your business government recognition and makes it eligible for various incentives. For instance, a registered MSME can see a marked reduction in their business loan EMI calculator results with this registration. By following the simple steps, you can include your business in India’s MSME fraternity.