The NSIC Registration is beneficial for those businesses which come under the category of Micro, Small and Medium Enterprises. NSIC Registration is provided under various schemes, focusing on one section of enterprise at once. By obtaining NSIC Registration, these enterprises enjoy the advantage in tender participation, easily promoting their products, and are exempted from Earnest Money Deposit (EMD). In this blog, we are going to learn about it in detail.
What is the NSIC Registration?
The NSIC is an enterprise of the Government of India which is an abbreviation for National Small Industries Corporation. The main intention of providing registration under NSIC is to promote the products from the micro and small enterprises (MSMEs).
Schemes of the National Small Industries Corporation
The main objective of NSIC is to aid, promote, and encourage the development of Micro, Small and Medium Enterprises in India under various schemes such as:
- Marketing Intelligence Services
- Performance and Credit Rating Scheme
- Raw Material Assistance
- Consortia & Tender Marketing Scheme
- Single Point Registration Scheme
- Credit Facilitation through Bank, etc.
Single Point Registration Scheme
Government is the largest purchaser of a variety of goods of small- scale sector. Therefore, the general purpose of this scheme is to increase the share of purchase from the small-scale industries under the Government Stores Purchase Programme, launched in the 1955- 56. These industries can participate in these purchase programmes by registering under the NSIC through the Single Point Registration Scheme (SPRS).
Credit Facilitation through Bank
The NSIC has entered a Memorandum of Understanding with numerous Nationalized and Private Sector Banks. Through these associations with banks, the NSIC facilitates MSMEs with financial support. Moreover, the NSIC takes full responsibility for assisting the completion of documentation and submitting them to the banks and even does the follow up from the banks. Furthermore, these services are provided free of cost to the small-scale industries.
Raw Material Assistance
The government provides financial support for the purchase of raw materials by small- scale industries under the Raw Material Assistance Scheme (RMA). The purpose behind this is to focus on and increase the quality of the products manufactured by these industries.
Consortia & Tender Marketing Scheme
The major objective of the corporation is to promote the products manufactured by the Micro and Small entrepreneurs. Furthermore, the products can be promoted either individually or collectively through ‘consortium’. Accordingly, a scheme was developed for this purpose, namely, the Consortia & Tender Marketing Scheme.
Marketing Intelligence Services
The aim of this scheme is to promote the business horizons of Indian MSMEs through Marketing Intelligence Web Portal. The Marketing Intelligence Cell collects and analyses data to determine the potential customers, determine the current and future needs and preferences, behaviours and attitudes of the market. Also, the vision of the government through this scheme is to assess the changes in the market and find opportunities in the future market.
There are many other schemes by NSIC like National Scheduled Caste and Scheduled Tribe Hub, MSME databank, and conduction exhibitions for promoting the marginalized sections of the society and small-scale and associated sector in India.
Advantages of NSIC Registration
The Benefits of NSIC Registration under the Single Point Registration Scheme are as follows;
- Advantages in Tender Participation
- Procurement from Micro and Small Enterprises
- Company registered under NSIC are exempted from Earnest Money Deposit (EMD)
- The tender set is granted free of cost
- 358 items are reserved to be purchased from the MSEs exclusively
Documents required for NSIC Registration
As per the Single Point Registration Scheme, all applicants should provide the following documents in duplicate (duly self-attested)
- Declaration of having made an entry in MSME Data Bank or copy of MSME Registration
- A Self-attested copy of PAN, Udyog Adhaar Memorandum (UAM) Number {Entrepreneur’s Memorandum (EM) Part-II (optional)}
- Also, the Proof of ownership of Plant & Machinery/ Equipment & Tools and Raw Material showing the date/ year of purchase & Original Purchase value of individual machinery (as per Annexure ‘B’).
- The Performance Statement, according to the Performa Annexure-F of the application.
- A Self-attested copy of documents of ownership of the premises or copy of the lease deed.
- Certificate from the Proprietor/ Partner/ Directors even if they do not have any link with large scale Unit(s).
Following documents/ statements must be furnished, duly signed by the authorized person;
- A List of technical personnel employed in production and services.
- Write-up on quality control measurement carried out by the firm for ensuring the quality of raw material brought out the item for assembly and sub-assembly and in-process and finished products quality control.
- A List of testing facilities and quality control equipment available in the factory
- The Copy of type test report from an Independent lab, where applicable as mentioned in the relevant standards.
- Copy of latest Electricity Bill.
- Audited Balance Sheet, Profit & Loss Account and Trading Account of the last 3 years duly signed by the authorized person by his seal.
- A Statement or declaration showcasing the Results of Operation for the last 3 years signed by an authorized person under his seal (as per the Annexure ‘C’).
- Bankers’ Report showcasing the details of the financial status of the applicant firm as per Performa (Draft at Annexure ‘E’).
- Copy of Permanent Account No.
Read our article:What is The Difference Between MSME and NSIC Registration?
Fees distribution for obtaining NSIC Registration
The total fees for NSIC registration are based upon the turnover of the business as per the latest audited financial statements. Furthermore, the charges for NSIC registration can be divided into three parts namely;
Registration Fee
The National Small Industries Corporation charges the following fee for new registration based on turnover and MSME classification[1].
Turnover less than Rs.1 Crore: Micro enterprises having a turnover of less than Rs.1 crore is charged with an amount of Rs.3000, while small enterprises having a turnover of less than Rs.1 crore are charged an amount of Rs.5000.
More than Rs.1 Crore turnover: Micro enterprises having a turnover of more than Rs.1 crore are charged an amount of Rs.3000 plus Rs.1500 for each crore of additional turnover. Also, small enterprises having a turnover of under Rs.1 crore are charged a fee of Rs.5000 plus Rs.2000 for each additional crore. The total cap on the registration fee is Rs.1 lakh.
Inspection Charges
Additionally, to the registration fee, MSME enterprises need to pay for the inspection services, as prescribed by the inspecting agency. The inspection charges are Rs.2000 for micro-enterprises and Rs.3000 for the small enterprises.
Professional Fee
Lastly, the MSME unit must pay a professional fee to RITES Limited and the Consultancy Development Centre for undertaking the physical inspection. A professional fee is set at Rs.6000 for micro-enterprises and Rs. 8000 for small enterprises.
Who can obtain NSIC Registration?
Everybody who wishes to register his/ her enterprise under the NSIC needs to satisfy the following criteria:
- Every Micro and Small Enterprises (MSEs) having Udyog Aadhaar Memorandum (UAM) or EM- Part II (Optional) can obtain NSIC registration under the Single Point Registration Scheme (SPRS).
- All those Micro Enterprises where investment in plant & machinery is up to Rupees 25 lakhs (and in the service sector till Rupees 10 Lakhs)
- All those Small Enterprises where investment is plant & machinery is up to Rupees 5 Crore (In-service sector up to rupees 2 crores)
- Holding MSME Certificate.
- Completed one year of business commencement.
Exemption: Under the Single Point Registration scheme, the Provisional Registration Certificate shall be issued to the Micro & Small Enterprises, for those not completed one year of commencement of business. Although, this shall be subject to the monetary limit of INR 5 Lacs.
What is the validity of NSIC Registration?
The NSIC registration issued under the Single Point Registration Scheme, 2003 to the Micro and Small Enterprises (MSEs) is valid for two years. Furthermore, there is a need to review and renew it every two years.
On the other hand, the provisional registration certificate provided to MSEs under SPRS with a monetary limit of Rs. 5 lakhs is valid only for one year.
NSIC Registration procedure
You may obtain the NSIC registration both online or offline. For the online registration of NSIC, you can follow the steps given below:
- Stage 1: Visit the official portal of National Small Industries Corporation.
- Stage 2: In the home page of National Small Industries Corporation, click on the option “Apply Online” given on the left side of the page.
- Stage 3: A new page will appear where you have to fill the details of your company.
- Stage 4: Once you have filled up the form completely, click on ‘Register’.
- Stage 5: Then, you have to pay the recommended NSIC registration fees.
- Stage 6: Furthermore, the NSIC will send a duplicate copy of the documents and application to the concerning inspecting agency for the technical inspection.
- Stage 7: Once the technical report comes, the NSIC issues the license.
Conclusion
NSIC Registration is a certification which can be obtained by enterprises that come under the Micro, Small and Medium Enterprises (MSMEs). Basically, it was launched to promote the products developed or produced by these small and medium scale industries, by the Government of India. Furthermore, various schemes under the NSIC provide benefit to various sector of society. Additionally, each scheme focuses on different sections of the society and small scale industries in India and works on promoting them.
Read our article:MSME Registration – Know the Entire Procedure
