We are Industrial Registration Consultants for Telangana Region as per MSMED Act 2006 to provide services to Small Scale Industry, Medium Scale Industry, Large Scale Industry Micro Enterprises, Small Enterprises, Medium Enterprises, Small and Medium Enterprises, Micro Entrepreneurs, Small Entrepreneurs, Medium Entrepreneurs, New Entrepreneurs, Manufacturer, Exporters, Service Providers, Information Technology (ITES) Units.
SMALL SCALE INDUSTRIES (SSI)
SSI stands for Small Scale Industries. Registering an organization as an SSI will entitle the organization to various benefits.
Small Scale and ancillary units (i.e. undertaking with investment in plant and machinery of less than Rs. 10 million) should seek registration with the Director of Industries of the concerned State Government.
Registration of Micro, Small and Medium Enterprises for two types of Companies:-
Manufacturing Entity - The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951). The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery.
Service Entity - The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.
|SI. No.||Type of Enterprise||Manufacturing Enterprises (Investment in Plant and Machinery)||Service Industry (Investment in equipment)|
|1||Micro||Does not exceed Rs. 25 Lakh||Does not exceed Rs. 10 Lakh|
|2||Small||Exceeds Rs. 25 Lakh but does not exceed Rs. 5 Crore||Exceeds Rs. 10 Lakh but does not exceed Rs. 2 Crore|
|3||Medium||Exceeds Rs. 5 Crore but does not exceed Rs. 10 Crore||DExceeds Rs. 2 Crore but does not exceed Rs. 5 Crore|
Benefits of Registering:
Even though there is no statutory basis for SSI registration, organizations would normally get registered to avail some benefits, incentives or support given either by the Central or State Government. Some of the incentives are as follows:
- Cheap Bank Finance
- Under the government’s Focus Scheme, the company is funded by 50% for buying the machines.
- Duty Drawbacks
- Exempt from Sales Tax
- Exempt from Excise Duty
- Its even easier to get licenses and permissions
- Credit guarantee scheme
- Priority sector lending
- Capital subsidy
- Reduced customs duty
- Power tariff subsidies
- ISO-9000 Certification reimbursement
- Exemptions under tax laws etc.
- Several other benefits provided by the State.
The registration certificate so issued by the concerned authority is seen as a proof of the unit being a small scale unit. It enables the unit to get several concessions like:-
- 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.
- Permanent registration of tiny units should be renewed after 5 years.
Objectives of the Registration Scheme
They are summarised as follows:
- 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 SSI Scheme:
- District Industries Centre is the primary registering authority
- Registration is voluntary and not mandatory
- There are two types of registrations. Initially, a provisional registration certificate is issued and after commencement of production, a permanent registration certificate is issued
- The provisional registration certificate is valid for a period of 5 years and permanent registration is given in perpetuity.
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.
Procedure for 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.
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.