Small Scale Industries or SSI as they are popularly known can get themselves registered under Ministry of Micro, Small & Medium Enterprises (MSME). If their investment in the Plant & Machinery is less then Rs. 1 Crore they can get themselves registered with Director of Industries of the Concerned State Government.
Benefits of Registration
One can get themselves registered to avail some benefits, incentives or support given either by the Central or State Govt. Various incentives offered by the Centre generally contains the following:
- Credit prescription (Priority sector lending), differential rates of interest etc.
- Exemption under Excise Laws
- Exemption under various Direct Tax Laws like Income Tax Act.
- Statutory support such as reservation and the Interest on Delayed Payments Act.
Many States and UTs have their own schemes and incentives for small scale. They relate to development of industrial estates, various tax subsidies, power tariff subsidies, capital investment subsidies and other support. Both the Centre and the State, whether under law or otherwise, target their incentives and support packages generally to units registered with them.
Mainly two types of registration is done in all States. First a provisional registration certificate(PRC) 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 thereafter.
PRC 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. Through PRC one can also 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.
We at NewCompanyIndia.Com provides various services related to SSI or MSME registration. Kindly contact our team of experts.