SSi Registration

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Registration of small scale unit:

Registration of small scale unit

SSI Registration  :

SSI Registration   Small Scale and ancillary units (i.e. undertaking with investment in plant and machinery of less than Rs. 6.0 million and Rs. 7.5 million respectively) should seek registration with the Director of Industries of the concerned State Government.  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.  States have generally adopted the uniform registration procedures as per the guidelines. However, there may be some modifications done by States. It must be noted that small industries is basically a state subject.

Benefits of Registering :

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. 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 1993.

Incentives by States and UTs:

Incentives by States and UTs States/UTs have their own package of facilities and incentives for small scale: development of industrial estates, tax subsidies, power tariff subsidies, capital investment subsidies and other support

Objectives of The Registration Scheme :

Objectives of The Registration Scheme   -To enumerate and maintain a roll of small industries to which the package of incentives and support are targeted. -To provide a certificate enabling the units to avail statutory benefits mainly in terms of protection.   -To serve the purpose of collection of statistics.  -To create nodal centres at the Centre, State and District levels to promote SSI.

Features of The Scheme :

Features of The Scheme   -DIC is the primary registering centre -Registration is voluntary and not compulsory.  -Two types of registration is done in all States. -First a provisional registration certificate is given. - And after commencement of production, a permanent registration certificate is given.  - PRC is normally valid for 5 years and permanent registration is given in perpetuity.

Provisional Registration Certificate (PRC)  :

Provisional Registration Certificate (PRC)   This is given for the pre-operative period and enables the units to obtain the term loans and working capital from financial institutions/banks under priority sector lending.  Obtain facilities for accommodation, land, other approvals etc.  Obtain various necessary NOCs and clearances from regulatory bodies such as Pollution Control Board, Labour Regulations etc. 

Permanent Registration Certificate:

Permanent Registration Certificate Enables the unit to get the following incentives:   - Excise exemptions   - Income-Tax exemption and Sales Tax exemption as per State Govt. Policy.    - Incentives and concessions in power tariff etc.   - Price and purchase preference for goods produced.  - Availability of raw material depending on existing policy.

Procedure For Registration :

Procedure For Registration   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 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. 


De-Registration A Small Scale Unit can violate the regulations in the following ways which will make it liable for de-registration:  - It crosses the investment limits.   - It starts manufacturing any new item or items that require an industrial license or other kind of statutory license.   - It does not satisfy the condition of being owned, controlled or being a subsidiary of any other industrial undertaking

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