SSI Registration - Overview

Let us look at the benefits of obtaining SSI Registration in India.

• There are a number of tax rebates offered to small businesses.
• A credit for Minimum Alternate Tax (MAT) is permitted to be carried forward for up to 15 years instead of 10 years.
• There are several government tenders that are only available to the Small scale industries.
• They are eligible to easy credit access.
• Once registered, the cost of obtaining a patent, or the cost of setting up an industry decreases because of availability of rebates and concessions.
• Businesses having SSI Registration are given higher preference for government license and certification.
• Registered SSIs are entitled to several Government incentives and subsidies.
• Small businesses under SSI Registration can also claim reimbursement of ISO Certification expenses by making application to the concerned authority.

Following are the documents required for online SSI Registration.

• Address proof of the business
• No Objection Certificate from Pollution Control Committee
• AoA, MoA, Partnership Deed
• Purchase records of machinery, raw materials etc

Both manufacturing units and service rendering businesses are eligible to obtain SSI registrations. At the same time, the eligibility criteria vary for SSI units in manufacturing and the SSI units indulged in service rendering as follows:

SSI registration for units involved in production or manufacturing can be acquired if the investment in plant and machinery (excluding land & buildings) is within any of the following limit:

- Micro Enterprises: having Investment of up to Rs.25 lakhs in plant and machinery

- Small Enterprises: having Investment of up to Rs.5 crores in plant and machinery

- Medium Enterprises: having Investment of up to Rs.10 crores in plant and machinery

SSI registration for units involved in rendering services can be acquired if the investment in equipment (excluding land & buildings) is within any of the following limit:

- Micro Enterprises: having Investment of up to Rs.10 lakhs in equipment

- Small Enterprises: having Investment of up to Rs.2 crores in equipment

- Medium Enterprises: having Investment of up to Rs.5 crores in equipment

SSI Registration process varies across states. But the below mentioned three steps are common.

Step 1: Probationary SSI Registration

For SSI registration the business unit is required to apply for Provisional SSI Registration Certificate (PRC) first. Provisional Registration Certificate is issued when the unit is in a pre-operative phase. This enables the SSI unit finance term loans and working capital from financial institutions or banks under priority sector lending.

Provisional SSI registration can be availed of by a business at any time and it does not require any industrial license. Once an application is submitted, the provisional registration is provided. No field enquiry is conducted hereafter. This registration is valid for five years and if the entrepreneur fails to set up the unit within this period, a fresh application for provisional registration can be made after completion of the 5 years.

Step 2: Commencement of Business

After obtaining Provisional SSI Registration, commence the business.

Step 3: Acquire Permanent SSI Registration

Once the business starts its production or activity, the business can apply for permanent SSI Registration. Once the permanent SSI Registration has been obtained, one can avail the following benefits:

• Tax exemption and Sales Tax exemption according to State Government Policy
• Incentives and concessions as per State Government Policy
• Get preference in respect to price and purchase for goods produced
• Raw material availability as per existing policy

Permanent SSI registration will be provided only if the following conditions are fulfilled by the SSI unit:

• i) The business has acquired all necessary clearances-statutory and administrative
• ii) It does not violate any regulations
• iii) Value of plant and machinery is within specified limits
• iv) The business is not owned, controlled and is not a subsidiary of any other industrial undertaking as per government notification.

The time taken for SSI Registration is about 15 to 20 working days.

Online SSI Registration can be obtained with the help of Tax Seva Kendra across states. We guarantee to help you obtain the registration in the earliest possible time. We have our team of experts who have experience in legal fields and registration of various businesses and licenses. We have 24x7 services available for you. Contact us for any queries or consultation and we ensure to offer best possible services to you.