Small scale businesses have played an important role in the country’s economic development since independence. Since then the government has been trying to promote these small and medium scale businesses.
Many benefits are provided by the government to small and medium-scale industries. For that, they need to get SSI registration certificate.
The MSME was established to enhance, facilitate and develop the competitiveness of the micro, small and medium enterprises. Registration for these two areas can be obtained by MSME law, whether the company is in the manufacturing line or the service line.
SSI Registration or Small Scale Industry Registration is a registration from the Ministry of Micro, Small and Medium Enterprises. In this article, we will look at the process of how to obtain a registration of SSI.
How to get online registration of SSI in India
The procedure for obtaining registration of SSI varies from state to state. However, the following three steps are the most common when it comes to registration SSI in many states.
Step 1: Provisional Registration of SSI
Before a business can obtain registration of SSI, they must first apply for a temporary registration certificate of SSI. Before the unit is operational, a temporary registration certificate is issued, and helps the SSI unit to obtain term loans and working capital from financial institutions/banks under priority sector lending. In addition to helping to obtain a bank loan, a temporary registration certificate of SSI enables businesses to access the facilities for accommodation, land, and other approvals, and obtain various NOCs and permits from regulatory bodies like the Pollution Control Board, the Labor Regulations, etc.
Provisional registration of SSI can be applied by a business at any time and doesn’t require an industrial license. After applying for temporary registration of SSI, the provisional registration is issued immediately and no field inquiries are made.
Provisional registrations of SSI are valid for five years, and if the entrepreneur is unable to set up the unit during this period, a new application for temporary registration may be made at the end of the 5-years period.
Step 2: Start the business
You can start your business with the provisional registration certificate of SSI. You can start an activity or production.
Step 3: Permanent Registration of SSI
Once production or activity commences, the business can apply for permanent registration of SSI and obtain it.
Permanent Registration of SSI can help the business obtain a variety of benefits:
Permanent registration of SSI will be provided only if the following conditions are satisfied by the SSI unit:
- The unit must have all statutory or administrative clearances.
- The unit doesn’t violate any existing restrictions,
- Value of the plant and machinery is within the prescribed limits, and
- The unit is not owned, controlled or affiliated with any other industrial undertaking as per notification.