Small Scale Industries (SSI) are companies that engage in the production, manufacture and distribution of goods on a small or micro scale. The amount of investment in the machinery, plants and other industries of Small Scale Industries cannot exceed the amount of Rs. 1 crore. Small-scale enterprises have to come within the regulations that are set by the Government of India. SSIs assist in the improvement of employment opportunitiessince most SSIs are based on labor.
Business Registration in the context of Small Scale Industry (SSI)
Ministry of Micro, Small, and Medium Enterprises (MSMEs) with the assistance of the Ministry of Small Scale Industries assists in the registration process in Small Scale Industries. It is vital to obtain SSI registration in order to take advantage of a variety of subsidy programs and government grants and incentives. SSI registration forms are accessible online for applicants to fill out and submit for the registration number. In accordance with the Ministry of Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, MSMEs are divided in two categories:
1. Manufacturing Enterprise
2. Service Enterprise
Small Scale Industries Registration Procedure in India
First step: fill out the registration form, providing all the information required and follow the steps which are provided on the home page , to complete the application form.
1: Once you have completed the application, simply click “Validate and pay” to submit your application and pay the registration fee.
2: Once you have completed the payment and submit the form An executive will review your application.
3: Once your application has been accepted, you will receive your SSI certification online by email.
Note that the validity of an SSI Registration Certificate is for the duration of its validity.
The Registration Form comprises 21 parts to fill online. The applicant’s Aadhar card Name, Social Category gender, gender, physically handicapped company’s name, name, kind of business and PAN. Additionally, these components include the location of the facility office address, the address of the applicant’s mobile number, Email ID. Date of beginning of business and bank account number IFS codes, details of business activities and NIC 2 digit code as well as additional information about an organization, the amount of staff, the investment amount in machinery and plant and lastly, the applicant’s Aadhar card attachement.
|Types of Enterprises & Eligibility||Manufacturing Enterprise||Service Enterprise|
|Micro Enterprise||Up to Rs. 25 lakh||Up to Rs. 10 lakh|
|Small Enterprise||Up to Rs. 5 crore||Up to Rs. 2 crore|
|Medium Enterprise||Up to Rs. 10 crore||Up to Rs. 5 crore|
|MSME – Merged Criteria: Investment and Annual Turnover|
|Sector/Enterprise Type||Micro Enterprise||Small Enterprise||Medium Enterprise|
|Manufacturing & Services Sector, Both||Amount of investment lower than the amount of. 1 crore
No turnover of less than 5 crores. 5 crore
|Amount of investment not more than 10 crores. 10 crore
Turnover up to Rs. 50 crore
|Amount of investment not more than 50 crores. 50 crore
Turnover up to Rs. 250 crore
Benefits of SSI Registration
- Concessional or low-cost loans interest rates.
- SSIs can benefit from numerous tax credits, once they have completed SSI registration
- The SSI units can credit to carry forward the Minimum Alternate Tax (MAT) for up to 15 years.
- Only SSIs can be able to access certain tenders from the government
- Acquiring government certifications and licenses is much easier after a company has a permanent registration
- A wide range of rebates and concessions are offered, the cost of establishing an industry is reduced.
Features of SSI
- Ownership: Most small-scale manufacturing companies have a sole proprietorship, or, if needed or required, a partnership comprised of several people
- Control: The responsibility for controlling the company is the business owner and leads to active involvement by the owner in the routine business operations
- Labor-Intensive: Technology is used in SSI can be described as minimal scale. The employment of workers for manufacturing activities.
- short reach: activities in the manufacturing industry that are small-scale do not have the capacity to scale up. Therefore, they are capable of meeting regional demands.
- The units are small in size, adjusting in response to changing conditions is easier for them.
- Resource: Small Scale Industries are located in areas where resources are readily available. This helps reduce the costs of transportation for the producer and makes the resource use is efficient.
List of SSIs in India
Here we look at small-scale Industries that you can get involved in at a low cost:
- Basic Metal Industries
- Beverages, Tobacco & Tobacco Products
- Chemical & Chemical Products
- Cotton Textiles
- Electrical Machinery & Parts
- Food Products
- Hosiery & Garments – Wood Products
- Jute, Hemp, and Mesta Textiles
- Leather & Leather Products
- Machines & Parts except for Electrical items
- Metal Products
- Miscellaneous Manufacturing Industries
- Non-metallic Mineral Products
- Paper Products & Printing
- Repair Services
- Rubber & Plastic Products
- Transport Equipment & Parts
- Wool, Silk, Synthetic Fiber Textiles
SSIs supply a variety of items as listed below:
- Domestic Utensils
- Hosiery Goods, Sheet Metal Goods
- Leather and Leather Goods
- Paints and Varnishes
- Plastic and Rubber Goods
- Preserved Foods and Vegetables
- Ready-Made Garments
- Safety Matches
- Stationery Items – Soap and Detergents
- Toothpaste and Toothpowder
- Wooden and Steel Furniture
Problems that confront Enterprises
- Inadequate Finance
- Insufficient marketing support
- Technology is not up-to-date
- Insufficient supply of raw materials
- Capacity is not being utilized to its fullest
- Difficulty in Import & Export
- Managerial Issues
- Scare Infrastructure
F AND Q
Q. What is the primary purpose in SSI registration?
SSI registrations can be used to get concessions and rebates through the state.
Q. What is the maximum amount that can be made by SSI?
The maximum amount of investment permitted for SSI can be up to 1 crore. 1 crore.
Q. How do I sign up for SSI on the internet?
Yes, you can sign up for SSI online through their official website and filling in and submitting an application.
Q. Is SSI registration mandatory?
A business entity that falls within the category of MSME provisions is not required to sign up under SSI. Registration is voluntary.
Q. What is the method of valuing equipment for service companies, and also plant and machinery for manufacturing firms calculated?
To calculate the value of Plant and Machinery, and Equipment its initial value is taken into consideration. There are some costs for components which are not included.
Q. What is the time frame it will be to complete registration after submitting the form?
The certificate of registration will be sent instantaneously via email when you complete an application.
Q. What are the documents I need to submit in order to be able to register for Small Scale Industries in villages?
There are no documents needed to register as SSI The information provided on the form for application is enough to allow your company to be registered as a Small Scale Industries.
Q. Do I get a paper replica of your certificate with an email?
As per the guidelines of the government, the use of paper is not permitted to improve the environment.
Q. What’s the main difference in SSI registration as well as MSME registration?
There is nothing different there is no difference between SSI as well as MSME registration. In the past, MSME registration was known by the term SSI registration.
Q. Do you have to be recognized in the category of Collate and Small Scale Industries?
It is highly recommended to be registered, since Government-led programs, incentives and subsidies can only be used when you are registered as a Small Scale Industry.
Q. What are some examples that illustrate small scale industries? Small Scale Industry?
Ans. Some examples include Basic Metal Industries, Beverages, Tobacco & Tobacco Products, Chemical & Chemical Products, Cotton Textiles, Electrical Machinery & Parts, Food Products, Hosiery & Garments, Wood Products, Metal Products, Leather and Leather Products.