SSI/MSME Registration

As a small enterprise, you can have access to priority sector lending, tax exemptions & capital investment and power tariff subsidies.

  • Data Check
    We do a thorough check of the files you send in
  • Vendor Connect
    We will appoint an affiliate to process your application
  • Receipt of License
    The certificate will be issued within 15 days of the application

Online Udyog Aadhar (SSI/ MSME) Registration - An Overview

An SSI also called Small Scale Industry Registration is a registration from the Ministry of Micro, Small and Medium Enterprises. When a business registers as SSI it becomes eligible to avail Government schemes and subsidies that are exclusive for small businesses.

Vakilsearch offers expert service for MSME registration:

  • Free consultation
  • Data verification: A thorough check of all the files submitted
  • Vendor Connect: A dedicated affiliate who processes the SSI online application
  • Receipt of License: The certificate will be issued within 15 days of application

MSME registration can be done by enterprises of sizes:

  • Micro
  • Small
  • Medium

Under the MSMED Act, these small businesses get varying incentives such as:

  • Priority sector lending
  • Tax exemptions
  • Capital investment

Registering for MSME is an entire online process but seeking the help of professionals makes it more easy. Vakilsearch assists you with the online application and gets the required approval from the department.

What is SSI/MSME Registration?

Small scale industries play a vital role in the socio-economic development of India. To promote and encourage these small-scale industries, the government of the country created the MSMED Act. The Act was created to maintain a list of all the industries registered as MSME or SSI. The record aided in providing support and incentives to these firms. Furthermore, SSI helped in employment of people at little capital investments.

The MSMED Act includes:

  • Small Scale Industries (SSI)
  • Micro, Small and Medium Enterprises (MSME)
  • Different sectors have different limits for registering under the act.
  • A manufacturing enterprise with plants and machinery that required an investment of below 10 Crores can be an MSME.
  • For service enterprises, the amount caps at five crores.
  • If the company exceeds the upper limit, at any point in the future, it is not considered as an MSME.

To avail the numerous benefits from the Government of India, an SSI registration certificate is needed. It is an optional registration but the companies that get registered are eligible for:

  • Lesser interest rates
  • Excise exemption scheme
  • Subsidies in tax, capital investment and power tariff
  • Other support

New Udyog Aadhar replaces SSI / MSME Registration

In order to make the process of registering a small or medium level enterprise even more straightforward, a new act called the Udyog Aadhar was created in 2015. Udyog Aadhar completely replaces MSME and is conducted entirely online. Under the Udyog Aadhar, only one page needs to be filled for registration with Aadhar Card acting as the sole legal document.

 

Why Udyog Aadhar registration?

BENEFITS

When you register your firm with Udyog Aadhar, the business can leverage many schemes initiated by State and Central Government. Some of the advantages of an MSME are:

    1. Refrain from asking for security deposits
    2. Concession in the electricity bills
    3. Increased chances of winning government tenders
    4. Reduction in fee for filing patents and trademark registration.
    5. Easy and cheaper bank loans
    6. Reservation benefits
    7. Stamp duty and registration charges are waived off
    8. Reimbursement under the bar code registration
    9. Industrial promotion subsidy
    10. Reduction in the rate of the interest by major banks

Type of MSME Registrations

PROVISIONAL MSME REGISTRATION

 

The first stage of MSME registration is provisional which is given during the pre-investment period of the firm. At this point, the enterprise qualifies for:

    • getting facilities for accommodation, land, etc.
    • getting various necessary NOCs
    • getting clearances from regulatory bodies

The Provisional SSI Registration Certificate (PRC) gives small companies the freedom to get term loans, working capital at a priority or certification from bodies like Pollution Control Board.

 

PERMANENT MSME REGISTRATION

 

The second type of MSME registration is permanent. It is given to industrial units that are already functioning. Though the Act is not mandatory, it is immensely beneficial for firms to have the support of government.

Guidelines for online SSI / MSME Registration

APPLY FOR PROVISIONAL REGISTRATION

A PRC is allotted to an enterprise without any field enquiry. It is purely an application-based form. Therefore, it has to applied in the precise prescribed form before operations begin in the unit. Once the application is submitted, the provisional registration will be provided without a physical inspection of the unit. The procedure is quick so that newly established firms can avail loans and other necessary approvals.

 

STARTING THE BUSINESS

The provisional certificate is valid for five years and the enterprise has to become operational within it. If the business fails to commence work under 5 years, a new application has to be submitted.

 

APPLYING FOR PERMANENT SSI REGISTRATION

If the entrepreneur successfully begins operations within 5 years, they can apply for a permanent certification. The registration is done at the Ministry of MSMEs. The permanent SSI registration is granted only if specific conditions are met:

  • The unit has obtained statutory and administrative clearances as required.
  • The unit does not violate any regulation or restriction.
  • The value of plant and machinery in the unit does not exceed the prescribed limits.
  • There should be proof the enterprise is not owned, subsidiary of or controlled by another industry.

At Mylegaltax, we are committed to helping you overcome every any obstacle that may arise in MSME registration for your enterprise.

List of documents required for SSI / MSME Registration

  • Business address proof
  • Copies of sale bill and purchase bill.
  • Partnership Deed/ MoA and AoA.
  • Copy of licenses and bills of machinery purchased.
  • For firms that are listed in Schedule -III of the Industrial Licensing Exemption Notification, no Industrial license is needed. Every other enterprise must obtain it for PRC application.
  • All statutory and administrative clearances need to be obtained such an NoC from pollution board to prove that no restrictions are being violated.

Udyog Aadhar eligibility - Who should obtain SSI/MSME Registration?

  • The eligibility for MSME or SSI registration is dependent on the scale of business of the enterprise. Udyog Aadhar registration is applicable for Proprietorship, Hindu Undivided Family(HUF), one-person company(OPC), Partnership Firm, public limited company, private limited company, production company, co-operative societies, limited liability partnership(LLP) or any association of persons or any other undertaking.

     

    MICRO ENTERPRISES:

    A manufacturing enterprise should have investment of less than Rs. 25 lakhs in plant and machinery. A service enterprise should have less than Rs. 10 lakhs invested. These micro enterprises are the smallest entities.

     

    SMALL ENTERPRISES:

    For manufacturing enterprises, the investment has to be between Rs. 25 lakhs and Rs. 5 crores in plant and machinery. For service enterprises, the range is between Rs. 10 lakhs and Rs. 2 crores.

     

    MEDIUM ENTERPRISES:

    If it is a manufacturing enterprise, the investment in plant and machinery has to be between Rs. 5 crore and Rs. 10 crores. If it is a service enterprise, the range is from Rs. 2 crores to Rs. 5 crores.

     

How we can help with MSME Registration? Why MyLegalTax

In 10 – 20 days time Vakilsearch obtains your MSME registration (without factoring in Government approval time).

 

2 WORKING DAYS

Following are the documents to be submitted with us:

  • PAN cards
  • Rental agreement for the office address (if rented)
  • Electricity bill
  • Identity and address proofs of the proprietor/partners/directors
  • For private limited companies:
    – Memorandum and Articles of Association
    – Form 32
    – Form 18
    – Certificate of incorporation
  • For Partnerships:
    – Partnership agreement.

2 WORKING DAYS

The submitted documents are filed along with the application. In some states, additional paperwork might be needed such as sale bills of machinery and municipal clearance.

 

15 WORKING DAYS

If production has not begun, a provisional certificate is issued for 5 years. It becomes permanent when the unit is functioning.

FAQs on SSI/MSME Registration

The PRC expires at the end of five years, at which point you may re-apply if the unit is not yet operational, or if the unit exceeds investment limits set by the MSMED Act. Once you commence operations, you can apply for the Permanent License.

For a registration, total plant and machinery cost should be up to Rs. 25 crore for manufacturing units and Rs. 10 crore for service units. While calculating this number, the value of land and building will not be counted toward the total investment. Also, the original cost of the equipment and plant and machinery is taken into account. Depreciation cannot be factored in.
All banks and other financial institutions recognise MSMEs and have created special schemes for them. This usually includes priority sector lending, which means that the likelihood of your business being sanctioned a loan is high. Bank loan interest rates will also be lower. There may also be preferential treatment in case of delay in repayment.

Most states offer those units registered under the MSMED Act a subsidy on power, taxes, and entry to state-run industrial estates. In particular, there is a sales tax exemption in most states and purchase preferences on goods produced. Depending on your business, you may also enjoy an excise exemption scheme and exemption from certain direct taxes in the initial years of your business.