{"id":1760,"date":"2019-12-21T13:50:11","date_gmt":"2019-12-21T13:50:11","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=1760"},"modified":"2021-04-09T12:47:19","modified_gmt":"2021-04-09T07:17:19","slug":"ssi-registration-procedure-and-objectives","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/ssi-registration-procedure-and-objectives\/","title":{"rendered":"SSI Registration \u2013 Objectives and the Registration Procedure"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Small scale industries often abbreviated as SSI are those industries in which the manufacturing, production and rendering of services are done on a small or micro scale. The government of India is trying to promote these small scale industries for creating employment opportunities in the remote areas that too, with low capital investment. Businesses having SSI Registration gets a higher preference for government license and certification and easy access to credit. In this article, we will see the characteristics, objectives, benefits and the registration procedure of the SSI units.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/ssi-registration-procedure-and-objectives\/#A_brief_about_the_SSI_and_SSI_Registration_%E2%80%93\" >A brief about the SSI and SSI Registration \u2013<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/ssi-registration-procedure-and-objectives\/#What_are_the_benefits_of_SSI_Registration\" >What are the benefits of SSI Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/ssi-registration-procedure-and-objectives\/#What_are_the_Objectives_of_the_SSI_registrations_Scheme\" >What are the Objectives of the SSI registrations Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/ssi-registration-procedure-and-objectives\/#What_are_the_Features_of_the_SSI_Registration_Scheme\" >What are the Features of the SSI Registration Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/ssi-registration-procedure-and-objectives\/#What_is_Permanent_Registration_Certificate\" >What is Permanent Registration Certificate?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/ssi-registration-procedure-and-objectives\/#What_are_the_benefits_SSI_units_enjoy_after_getting_the_PRC\" >What are the benefits SSI units enjoy after getting the\nPRC?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/ssi-registration-procedure-and-objectives\/#Role_in_the_Indian_economy\" >Role in the\nIndian economy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/ssi-registration-procedure-and-objectives\/#What_are_the_Documents_required_for_obtaining_the_SSI_Registration_Certificate\" >What are the Documents required for obtaining the SSI\nRegistration Certificate?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/ssi-registration-procedure-and-objectives\/#What_is_the_Procedure_for_obtaining_the_SSI_registration\" >What is the Procedure for obtaining the SSI registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/ssi-registration-procedure-and-objectives\/#De-registration_of_the_SSI_Certificate\" >De-registration of the SSI Certificate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/corpbiz.io\/learning\/ssi-registration-procedure-and-objectives\/#Final_Thoughts\" >Final Thoughts<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_brief_about_the_SSI_and_SSI_Registration_%E2%80%93\"><\/span>A brief about the SSI and SSI Registration \u2013<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nindustries which manufacture products and render services with the help of\nsmall machines and less workforce are called Small Scale Industries. SSI units\nwhose investment in plant and machinery is less than <strong>INR 10 Million<\/strong> should seek registration form the Director of\nIndustries of their concerned State Government. The primary purpose of&nbsp;<a href=\"https:\/\/corpbiz.io\/msme-registration\"><strong>SSI\nregistration<\/strong><\/a>&nbsp;is to\nmaintain the statistics of the SSI units operating in India and providing\nincentives and support services to these units. Some states also have a \u201cSIDO\n(Small Industries Development organisation) Registration Scheme\u201d and a \u201cState\nRegistration Scheme\u201d.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Here is a list of industries which operate under the SSI\nunits:<\/h3>\n\n\n\n<ul><li>Water bottles<\/li><li>Leather Belt<\/li><li>Small toys<\/li><li>Paper bags<\/li><li>Bakeries and many more.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_benefits_of_SSI_Registration\"><\/span>What are the benefits of SSI Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After\nregistering as an SSI unit, these small scale industries can avail benefits,\nincentives or support either by the Central or State Government. The regime of\nthe incentives contains the following:<\/p>\n\n\n\n<ul><li>Differential rate of interest, Credit Prescription<\/li><li>Excise Exception Scheme<\/li><li>Exemption under Direct Tax Laws<\/li><li>Statutory supports such as Reservation and Interest on delayed Payments etc.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Objectives_of_the_SSI_registrations_Scheme\"><\/span>What are the Objectives of the SSI registrations Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>To itemize and maintain a record of small industries to which the package of incentives and supports are targeted.<\/li><li>The SSI Registration Scheme provides a certificate enabling the units to avail statutory benefits in terms of protection.<\/li><li>It provides a Statistics of the SSI units working in India.<\/li><li>It aims to create nodal centres at the Centre, state and District levels to promote SSI.<\/li><\/ul>\n\n\n\n<p><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/government-schemes-launched-by-msme\/\">What are The Government Schemes Launched by MSME?<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Features_of_the_SSI_Registration_Scheme\"><\/span>What are the Features of the SSI Registration Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Under the SSI Registration Scheme, DIC (District Industries Centre) is the primary registering Centre.<\/li><li>Also, the registration procedure is not mandatory. It\u2019s a voluntary process.<\/li><li>There are two kinds of registration done in all the states. At first, a      Provisional Certificate is given, and a permanent registration certificate is given after the commencement of production.<\/li><li>The PRC (Permanent Registration Certificate) usually is valid for five years, and permanent registration is given in perpetuity.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Permanent_Registration_Certificate\"><\/span>What is Permanent Registration Certificate?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Permanent\nRegistration Certificate is a provision given to the SSI units before\ncommencing the business or service. It enables the unit to obtain the term\nloans and working capital from financial institutions and banks under the\npriority sector lending. After obtaining the PRC, you can also obtain\nfacilities for accommodation, land and other amenities. Also, you can obtain\nvarious necessary NOCs and clearances from regulatory bodies such as Pollution\nControl Board, Labor Regulation etc.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_benefits_SSI_units_enjoy_after_getting_the_PRC\"><\/span>What are the benefits SSI units enjoy after getting the\nPRC?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The SSI units get income tax exemption and Sales Tax Exemption as per the State Govt. policy.<\/li><li>The SSI units enjoy incentives and concessions in power tariff.<\/li><li>The SSI units get price and purchase preference for goods produced.<\/li><li>Easy availability of raw materials.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Benefits of obtaining SSI registration<\/h3>\n\n\n\n<ul><li>Tax rebates to the SSI units.<\/li><li>The SSI units can enjoy the credit for MAT (Minimum Alternate Tax) up to 15 years. Previously the duration was just ten years.<\/li><li>The easily get many government tenders.<\/li><li>The SSI units, after obtaining the SSI registration, get easy access to the credit.<\/li><li>The cost of acquiring a patent and setting up the industry reduces as many rebates and concessions are available after getting the SSI registration.<\/li><li>Businesses having SSI registration gets a higher preference for government license and certification and easy access to credit.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Role_in_the_Indian_economy\"><\/span>Role in the\nIndian economy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>\u00a0The contribution of SSI in developing Indian economy is given below:<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Employment: <\/h3>\n\n\n\n<p>For developing countries like India\nSSI\u2019s is a major source of employment. Because of the limited resource and technology\navailability they have a tendency to use manpower and manual labour for their manufacture\nactivities.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Total\nProduction: <\/h3>\n\n\n\n<p>The total production of these\nenterprises comes almost around 40% of goods and services in India. They are\none of the major reasons behind the development and strengthening of the Indian\neconomy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Make\nin India: <\/h3>\n\n\n\n<p>SSI\u2019s have proved to be the best example\nfor making successful the Make in India initiative. Their main mission is to\nmanufacture the products in India and sell them worldwide. This also helps\ncreate more demands from all over the world.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Export\ncontribution: <\/h3>\n\n\n\n<p>India\u2019s export industry is majorly\ndependent on the small industries for development and improvement. As half of\nthe goods exported from India are produced or manufactured by these small industries.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Public\nWelfare: <\/h3>\n\n\n\n<p>Because of their capability to create\nemployment and earn wealth these industries are important for the social\ngrowth, public welfare and development of our country.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Documents_required_for_obtaining_the_SSI_Registration_Certificate\"><\/span>What are the Documents required for obtaining the SSI\nRegistration Certificate?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Checklist of\nDocuments required for obtaining the SSI Registration Certificate:<\/em><\/strong><\/p>\n\n\n\n<ul><li>\u00a0Aadhar number<\/li><li>\u00a0Bank account details.<\/li><li>Proof of Business name and its address<\/li><li>Purchase bill copies, raw materials and equipments used, etc.<\/li><li>Partnership deed, MoA, AoA<\/li><li>Photo copy of valid consent letter from pollution control committee of that state.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Procedure_for_obtaining_the_SSI_registration\"><\/span>What is the Procedure for obtaining the SSI registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The procedure for obtaining the SSI Registration is given below<\/em><\/strong>:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Apply for the PRC<\/h3>\n\n\n\n<p>Any SSI unit\nthat does not require an industrial license can apply for PRC provided that the\nitems are listed in the Schedule III and not in Schedule I and Schedule II of\nthe licensing Exemption Notification. Units having workforce less than 50\/100\nworkers with or without power can apply for registration even for those items\nincluded in Schedule III.<\/p>\n\n\n\n<p>The SSI units\ncan apply for PRC in the prescribed application form. The next step involves\nthe issuance of PRC in which no field enquiry is done.<\/p>\n\n\n\n<p>After\nobtaining this certificate, the newly established business can get a loan under\nthe priority sector. It also provides facilities for accommodation, land and\nother amenities.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Applying for Permanent SSI Registration<\/h3>\n\n\n\n<p>After\nobtaining the SSI Provisional Registration Certificate, you can apply for the\npermanent registration to the&nbsp;<strong>MSMEs<\/strong><a href=\"https:\/\/msme.gov.in\/\"><strong><sup>[1]<\/sup><\/strong><\/a><strong>.<\/strong><\/p>\n\n\n\n<p>The important\nthing is that the registration is granted if the following conditions are\nsatisfied by the small scale industry:<\/p>\n\n\n\n<ul><li>The SSI units have obtained all the necessary statutory and administrative clearances.<\/li><li>The value of the plant and machinery do not exceed the prescribed limits.<\/li><li>The SSI units shall not be owned and controlled by any other industrial undertaking.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"De-registration_of_the_SSI_Certificate\"><\/span>De-registration of the SSI Certificate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The registered SSI units are liable for de-registration if \u2013<\/em><\/strong><\/p>\n\n\n\n<ul><li>It crosses the specified investment limits into Plant and Machinery.<\/li><li>It starts to produce those items which are not listed in the Schedule I and Schedule II of the licensing Exemption Notification.<\/li><li>It starts to produce those items which require any industrial license.<\/li><li>It is owned, controlled or is a subsidiary of any other industrial      undertaking.<\/li><li>It fails to comply with any regulation or restriction.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Final_Thoughts\"><\/span>Final Thoughts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The SSI units\nare the lifeline of the Indian Economy and are a significant source of\nemployment for developing countries like India. They use limited technology and\nresource availability in fewer workforces. If you want to have your own\nbusiness and be self-reliant, you can opt for the SSI units as there are\nvarious tax rebates and other benefits offered to these MSMEs units.<\/p>\n\n\n\n<p><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/msme-form-1-filing-procedure\/\">MSME Form 1: Know The Procedure to File, Due Dates and Penalties<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Small scale industries often abbreviated as SSI are those industries in which the manufacturing, production and rendering of services are done on a small or micro scale. The government of India is trying to promote these small scale industries for creating employment opportunities in the remote areas that too, with low capital investment. Businesses having [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":1761,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[176],"tags":[246],"acf":{"service_id":"71"},"authorName":"Shalini Singh","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2019\/09\/MEE.jpeg","authorDescription":"Shalini is a B.tech graduate but her keen interest in writing impelled her to continue as a content writer. Further, She has a rich experience in Companies Act and Ammendment related topics.","postViews":14985,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1760"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=1760"}],"version-history":[{"count":15,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1760\/revisions"}],"predecessor-version":[{"id":28771,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1760\/revisions\/28771"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/1761"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=1760"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=1760"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=1760"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}