Overview of NSIC Registration
NSIC (National Small Industries Corporation Limited) is a government undertaking which was established in 1955. NSIC is operating under Micro, Small, and Medium Enterprise (MSMEs). At present, NSIC is a reputed Mini Ratna Public Sector Undertaking (PSU) and also holds ISO 9001:2015 certification.
NSIC was established to promote & fosters the growth of MSMEs operating in India and to act as a mediator to aid Small Scale Industries. It provides unified support services in various fields that include technology, support service, finance, and marketing. It registers Micro & Small Enterprises under Single Point Registration Scheme for association in Government purchases.
To obtain registration, enterprises having MSME or Udyog Aadhaar registration can apply online or by submitting an application at one of the NSIC offices. On submission of the application, the NSIC forwards the application to an zonal, branch or sub-branch office nearest to the applicant for completing technical inspection of the unit and forwarding of recommendation for NSIC registration. On receiving the inspection report, NSIC grants registration to the MSME unit.
What are the Eligibility Criteria for Choosing NSIC Registration?
The applicant shall mandatorily meet these eligibility criteria before applying for NSIC registration-
- All Micro Enterprises whose investment in- Plant & machinery is up to INR 25 lakhs and In-service sector up to INR 10 Lakhs, OR
- All Small Enterprises whose investment in Plant & machinery is up to INR 5 Crore, In-service sector up to INR 2 crores, OR
- Holding MSME Certificate.
- Completed one year of business commencement.
Note-The Provisional Registration Certificate shall be issued to the MSEs under the Single Point Registration scheme, which has not completed one year of business commencement.
What are the Schemes Available under NSIC Registration?
There are various schemes under NSIC Registration, which are as follows:-
- Single Point Registration Scheme
- Consortia & Tender Marketing
- Procurement Marketing Scheme
- Performance and Credit Rating Scheme
- Bill Discounting Scheme
- Credit Facilitation by Banks
- Marketing Intelligence
- Raw Material Assistance Scheme
- Procurement and Marketing Assistance Scheme
- Infomediary Services
- Skill Development Service
What are the Benefits of NSIC Registration?
The benefits of NSIC Registration are-
- Enables the Allotment of Tenders Free of the Cost
The key benefit of NSIC registration is that it authorizes the allotment of tenders free of cost to permitted MSMEs.
- Enhances the Proficiency of MSMEs
It undertakes a set of customized services to enhance the proficiency of MSMEs in India.
- Assistance to MSMEs by Combining Various Support Services
NSIC helps in implementing various integrated support services as regards Marketing, Technology, Finance, and other sorts of support to MSMEs.
- Free from Earnest Money Deposits
MSMEs having NSIC Registration are not required to pay EMD (Earnest Money Deposits). EMD is taken from the bidder to guarantee his sincerity in the deal.
- Progress of Small-scale Industries
To uplift the Small-scale Industrial sector NSIC has reserved 358 items for purchase particularly only from SSIs.
- Relief in Government Tenders
All MSMEs bidding for tenders within the price cap of L1+ 15% is permitted to supply up to 20% of the demand by lowering the price to L1.
- Offers Various Consultancy Services
NSIC provides various consultancy services that include Capacity building, Policy framework, and Entrepreneurship development.
What Documents are required for NSIC Registration?
The documents required for NSIC registration are mentioned-below:-
- Identity proof and address proof of the authorized person.
- Copy of Acknowledgement of MSME registration
- A Signed copy of PAN, Udyog Aadhaar Memorandum (UAM) Number,
- A Signed copy of ownership documents of the business location (CoI),
- Copy of sales deed, if any
- Declaration from the Directors, Partners, or Sole proprietor that whether or not they have any link with large scale Unit(s).
- Write-up on quality control measures adopted by the firm for ensuring quality of raw material, bought out item (s) for assembly and sub assembly and for products/stores in process and the finished products quality control
- List of quality control equipment and testing facility available in factory
- Copy of type test report from Independent lab, where applicable as mentioned in relevant standard.
- Business existence proof for a minimum of 3 years along with the proof of ownership of raw materials, plant/machinery, equipment, and tools.
- Particulars of employees involved in production and services.
- Particulars of entry have been made in MSME Data Bank.
- Memorandum as per application’s Performa ‘Annexure-F.
- Review on quality control measurement chooses by the firm for quality control.
- Audited balance sheet and P&L for the previous 3 years.
- Banker’s Certificate.
- Copy of BIS license, if applicable.
- Copy of ISO 9000 (not obligatory).
What is the Procedure to obtain the NSIC Certificate?
Enterprises that are registered under MSME or have Udyog Aadhar Registration are eligible to get registered under NSIC. Registered MSME having Udyog Aadhar Registration can apply online for NSIC Registration. To obtain the NSIC certificate, MSMEs are required to fill the application form and submit it along with required documents to the respective NSIC’s zonal or branch offices located nearest to the unit.
For an NSIC certificate, an applicant needs to follow various steps as follows:-
- Step 1
An applicant (MSME) needs to visit the official website www.nsicspronline.com to obtain NSIC Certificate.
- Step 2
To get registered for Single Point Registration Applicant, MSMEs are required to register in MSME Data Bank using UAM No. and PAN.
- Step 3
Fill in the requisite details asked in the application form using PAN and UAM numbers.
- Step 4
An applicant shall submit the application form, along with the necessary documents.
- Step 5
Payment of a requisite fee to obtain the NSIC certificate.
- Step 6
Once the payment is made and confirmed and documents get verified by the authority, the NSIC certificate shall be sent by post.
What are the Charges Applicable for the NSIC Registration?
At the time of NSIC registration various fees such as-
- Registration fees,
- Inspection charges along with professional fee are payable
- Registration Fees :-
Turnover Up to INR 1 Crore
Turnover Exceeding INR 1 Crore
INR 3000 + INR 1500 for additional turnover exceeding 1 Crore
INR 5000 + INR 2000 for additional turnover exceeding 1 Crore
- Inspection Charges
These charges are paid in addition to the registration fee.
a. Rs 2000 for micro-sized MSME
b. Rs 3000 for small-sized MSME
What is the Validity of NSIC Registration?
Under Single Point Registration NSIC Certificate granted to MSMEs remains valid for 2 years which is renewed after the expiry of such 2 years. You must also note that Provisional NSIC certificate granted to MSMEs with a pecuniary limit of INR 5 Lakhs is valid for 1 year from the date of issue of the Certificate.
What are Functions Performed by NSIC?
Below-mentioned are the functions of NSIC:-
- To enhance competitiveness, NSIC runs various development schemes for MSMEs.
- It provides unified support services to MSMEs in Marketing, Technology, and finance.
- It also provides technical and skill development to MSMEs.
- Enables the allotment of tenders free of cost to eligible MSMEs.
CorpBiz Procedure for NSIC Registration
Kindly utilize the steps given above to integrate legally and securely a NSIC registration and get the benefits in the form of better-quality sales and satisfied clients. Our CorpBiz experts will be at your disposal for assisting you with guidance concerning NSIC registration and its compliance for the smooth functioning of your small business in India. CorpBiz professionals will assist you in planning seamlessly at the least cost, confirming the successful conclusion of the process.
It is advisable that an attorney with “Industrial experience” must be appointed to overwhelm many of the potential pitfalls that creep around within NSIC registration and to understand the requirement in detail. The elementary information would be mandatory from your end to start the process. The Attorney will begin working on your request once all the information is provided, and the payment is received.
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- Purchase a Plan for Expert Assistance
- Add Queries Regarding NSIC registration
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Frequently Asked Questions
NSIC stands for National Small Industries Corporation Limited.
Udyog Aadhar is a government registration that is provided to certify small/medium businesses or enterprises.
The objective of NSIC is to support and promote the growth of MSME businesses in India. NSIC operates various schemes like-
- Single point Registration for Government Purchase,
- Marketing Support,
- Performance and Credit Rating Scheme for small industries and more.
NSIC does not register the traders in SPRS.
To uplift the SSI sector, NSIC has reserved 358 items for supply specifically for the SSIs.
The applicant shall meet the below-mentioned requirements for being eligible:
- Applicant must be a MSE with valid Udyog Aadhar Memorandum or EM Part-II
- MSMEs who have started their business and have started commercial production for 1 year or less can apply for a provisional NSIC certificate with a validity of 1 year.
- Single point registration scheme
- Credit rating scheme
- Tender marketing scheme
- Assistance for raw material
- National center for SC/ST.
- Providing services relating to Marketing Intelligence.
Provisional Certificate is issued to those MSEs who have started the production but do not possess the audited Balance sheet for the last 1 year.
The permissible limit for investment in plant and machinery is up to Rs. 25 lakhs.