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Small Scale Industries (SSI) Registration Process, Eligibility & Benefits

Small Scale Industries (SSI)


What is Small Scale Industries (SSI) ?


Small scale industries are the lifeline of the economy. Essentially small scale industries generally include those industries which produce, manufacture and provide services with the help of less manpower and smaller machines. These enterprises must fall under the guidelines, set by the Government. These industries play an important role in employment generation as they are generally labor intensive. SSIs are an important sector of the economy from both a social and financial point of view, as they help in per-resource and capita income utilization in the economy.

Small Scale Industries (SSI) are those industries in which production, manufacturing and rendering of services are carried out on a small or micro scale. These industries make lump sum investment in plant, machinery and equipment but it does not exceed Rs 10 crore and annual turnover does not exceed Rs 50 crore. Based on the nature of work done, SSIs are mainly classified into manufacturing industries, ancillary industries, service sectors, export units, cottage units and village industries types.

SSI registration is done from the Ministry of MSME (Micro, Small and Medium Enterprises). A business that obtains SSI registration becomes eligible for several schemes and subsidies that the government promotes to promote small scale businesses in India. You will be surprised to know the many benefits of getting SSI registration done.

In the nascent stages of a business, it is common for entrepreneurs to seek a license so that the government can recognize the business. One of the easy registration procedures offered by the government is MSME or SSI registration. Apart from recognition from the government, there are a ton of other benefits of getting the same job done.

Objectives of SSI Registration


  • Match and track small industries that encourage and support are targeted
  • to help collect data
  • Allows businesses to obtain statutory benefits specifically related to security to provide certifications
  • To help create nodal centers at district, state and central level for promotion of SSI.

Features of Small Scale Industries (SSI)


  • SSIs are generally in sole proprietorship.
  • Both control and management are with the owner.
  • The dependence of small scale industries on technology is quite limited.
  • SSIs can meet their local and regional demand as there is a restricted area of ​​operation of small scale industries.
  • Small scale industries are more adaptable to their changing business environment.
  • SSIs use readily available resources which helps the economy to fully utilize the natural resources with minimum wastage.

Ideas of Small Scale Industries


  • Bakeries
  • School stationeries
  • Water bottles
  • Leather belt
  • Agarbatti making
  • Small toys
  • Paper Bags
  • Photography
  • Beauty parlours
  • Spinning and weaving industry
  • Coconut oil making
  • Cashew nut processing
  • Clay products
  • Detergent powder making
  • Chalk making
  • Biodiesel production
  • Rice mill
  • Toys making
  • Honey processing
  • Slippers making
  • Incense stick manufacturing industry
  • Paper plate manufacturing industry
  • Spices making
  • Chocolate making
  • Water bottles manufacturing
  • Toothprick making
  • Xerox and printing
  • Pickle manufacturing industry
  • Candle manufacturing

Benefits of SSI Registration


SSI registration is not a mandatory requirement for a small business in India. However, businesses that have SSI registration can avail some benefits, incentives or support given either by the Central or State Government. Some of the incentives offered for SSI businesses include :
  • Priority sector lending in Banks
  • Reduction in bank loan interest rate
  • Excise exemption scheme
  • Exemption under direct tax laws
  • Statutory support such as reservation
  • Interest on Delayed Payments Act
In addition to the above-mentioned benefits provided by the Central Government, States Governments and Union Territories have implemented their own package of facilities and incentives for SSI units. Typical SSI benefits relate to the development of industrial estates, tax subsidies, power tariff subsidies, capital investment subsidies and other support. Both the Centre and the State Government subsidies aimed at small businesses are provided only to those businesses having SSI registration.

SSI Registration Eligibility


Eligibility Criteria for Manufacturing Units & Service Rendering Units

SSI registration can be obtained by both the enterprises providing the service and the manufacturing units. The registration eligibility criteria for which are as follows:

Small scale industry registration can be obtained for manufacturing units if the investment in plant and machinery is within any of the following levels :
  • Micro Enterprises : Investment of up to Rs.25 lakhs in plant and machinery.
  • Small Enterprises : Investment of up to Rs.5 crores in plant and machinery.
  • Medium Enterprises : Investment of up to Rs.10 crores in plant and machinery.

SSI registration can be obtained for service rendering units if the investment in equipment is within any of the following levels :
  • Micro Enterprises : Investment of up to Rs.10 lakhs in equipment.
  • Small Enterprises : Investment of up to Rs.2 crores in equipment.
  • Medium Enterprises : Investment of up to Rs.5 crores in equipment.

How to get SSI Registration ?


Small Industries Registration or Small Industries Registration is a registration process from the Ministry of Micro, Small and Medium Enterprises. Once a business gets SSI registration, it becomes eligible for several schemes and subsidies promoted by the government to promote small businesses. We will look at the procedure to do SSI registration offline or online here.

Small Scale Industries (SSI) Registration is a registration provided by Ministry of MSME. A business must obtain SSI registration to be eligible for the many subsidies, schemes and other incentives provided by the government to such SSIs. SSI registration can also be obtained online.

SSI registration or small scale industry/business registration or all are same as MSME registration in India. Small scale industries registration is provided by the Ministry of Micro, Small and Medium Enterprises through the Directorate of Industries of the state government. The main objective of SSI registration is to provide incentive and support services and to maintain statistics of SSI businesses in India. Each state government has adopted similar registration procedures as per the MSME guidelines. But, some states have amended the procedures for obtaining small scale industry registration. Hence, the process of obtaining registration will vary from state to state.

How to do SSI Online Registration in India ?


Under Udhyog Adhaar, the Central Government has launched the Enterprise Registration Portal to make it easy to apply for the promotion of industries. Through this portal any micro, small and medium entrepreneur of the country can register his business. There is no need to upload any kind of documents, certificates, photos to register your industry online on the enterprise portal, now you can easily register on the enterprise portal through just Aadhaar number and a self-declaration form. Let us tell you that the registration on Udyam Portal is for two types of people first For New Entrepreneurs who are not Registered yet as MSME and second For those already having registration as EM-II or UAM.

The main logic behind SSI registration is to establish new SSI business. Enterprises can also get SSI/MSME registration online through Udyam Registration. Following is the process of SSI registration online :
  • Go to the UDAY Registration Portal and click on “For New Entrepreneurs who are not yet registered with MSME or EM-II”.
  • Enter your Entrepreneur Name and Aadhar Number and click on “Validate and Generate OTP” button. You will receive OTP on mobile number.
  • Then enter PAN details and click on “Validate PAN” button.
  • After that fill all the personal details and industry details and click on “Submit & Receive Final OTP” button.
  • After this the MSME registration will be completed and a message of successful registration with a reference number will appear. After verification of registration, the certificate is issued.
If a person wants to get registration for more than one industry, he can also opt for individual small scale industry registration.

Udyog Aadhaar MSME New Update


The country's Finance Minister Nirmala Sitharaman has made a new announcement for micro, small and medium entrepreneurs. Under the Self-Reliant India Campaign, to make India more strong, emphasis has been given to make India's small and medium cottage industries more capable. Under the Self-Reliant India Campaign, a package of 3 lakh crores has been announced for the MSME sector. Through this economic benefits will be given to the people of India.

How to do SSI Offline Registration in India ?


Different states have different process for doing SSI registration. However, the following steps are the same while doing SSI registration in many states.

Step 1 : SSI Provisional Registration
To do SSI registration the business must first apply for Provisional SSI Registration Certificate (PRC). Provisional Registration Certificate is given when SSI helps the unit to get term loan and working capital under Priority Sector Lending from Financial Institutions/Banks and the unit is in pre-operational period.

Apart from helping the bank get loan, it also helps in obtaining various necessary NOCs and clearances from regulatory bodies like Labor Regulations, Pollution Control Board and Bank Provisional SSI Registration Certificate to help the business to get land, housing, other approval facilities. does.

A business can apply for provisional small scale industry registration at any time. After applying provisional SSI, provisional registration is provided. Provisional small scale industry registration is considered valid for five years and a fresh application for provisional registration can be made at the end of the period of five years.

Step 2 : Start the Business
With Provisional SSI Registration Certificate one can start business and start activity or production.

Step 3 : SSI Permanent Registration
When the business starts production or activity, the business can apply for permanent SSI registration. By doing permanent SSI registration, the business gets other benefits such as :
  • Price and purchase preference for goods produced
  • Incentives and concessions in power tariff as per State Government Policy
  • Income-Tax exemption and Sales Tax exemption as per State Government Policy
  • Availability of raw material depending on existing policy
Permanent SSI registration will be granted only when the following conditions are fulfilled by the SSI unit :
  • Whether it is statutory or administrative unit has obtained all necessary approvals.
  • The entity does not violate any applicable restrictions.
  • The value of plant and machinery is within the prescribed limits.
  • The entity is not controlled, owned or a subsidiary of any other industrial undertaking as per the notification.

Helpline Number


Through this article, we have provided you all the important information related to Udyog Aadhaar Registration. If you are still facing any kind of problem then you can solve your problem by email. Email ID is ua-msme@gov.in.

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