How To Get Online Ssi Registration

SSI Registration or Small Scale Industry Registration is a registration from the Ministry of Micro, Small and Medium Enterprises. Once a business obtains SSI registration, the business becomes eligible for a number of schemes and subsidies promoted by the Government to boost small businesses in India. In this article, we look at the process of obtaining SSI registration online or offline.

SSI Registration Overview

SSI Registration or Small Scale Industry Registration or Small Business Registration are all the same as MSME Registration in India. SSI Registration is provided by the Ministry of Micro, Small and Medium Enterprises through the Directorate of Industries of the State Government. The main purpose of SSI registration is to maintain statistics and a roll of SSI businesses in India for the purposes of providing incentives and support services.

Each of the State Government has adopted the uniform registration procedures as per the MSME guidelines. However, some states have made modifications to the procedures for obtaining SSI Registration. Therefore, the procedure for obtaining registration would vary from State to State.

SSI Registration Eligibility Criteria

SSI registration can be obtained by both manufacturing units and service rendering enterprises. However, the registration eligibility criteria differ for SSI units in manufacturing and SSI units in service rendering as follows:

SSI registration can be obtained for manufacturing units if the investment in plant and machinery (excluding land & buildings) 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 (excluding land & buildings) 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

Benefits of obtaining 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.

How To Get Online Ssi Registration in India

The process for getting SSI registration varies from state to state. However, many of the states have the following three steps in common while proving SSI registration.

SSI Registration Steps

Step 1: Provisional SSI Registration

To obtain SSI registration the business must first apply for Provisional SSI Registration Certificate (PRC). Provisional Registration Certificate is given when the unit is in a pre-operative period and helps the SSI unit obtain term loans and working capital from financial institutions/banks under priority sector lending. In addition to helping obtain a bank loan, the provisional SSI registration certificate also helps the business obtain facilities for accommodation, land, other approvals etc. and obtain various necessary NOCs and clearances from regulatory bodies such as Pollution Control Board, Labour Regulations etc.

Provisional SSI registration can be applied for by a business at any time and an industrial license is not required. Once an application is made for Provisional SSI registration, the provisional registration is provided and no field enquiry is done. Provisional SSI registrations are valid for five years and if the entrepreneur is unable to set up the unit in this period, a fresh application for provisional registration can be made at the end of five years period.

Step 2: Start the Business

Start the business with the provisional SSI registration certificate. Commence activity or production.

Step 3: Permanent SSI Registration

Once the business commences production or activity, the business can apply for and obtain permanent SSI registration. Obtaining permanent SSI registration will help the business obtain the following benefits:

Income-Tax exemption and Sales Tax exemption as per State Government Policy
Incentives and concessions in power tariff as per State Government Policy
Price and purchase preference for goods produced
Availability of raw material depending on existing policy

Permanent SSI registration will be provided only if the following conditions are satisfied by the SSI unit: i) the unit has obtained all necessary clearances whether statutory or administrative, ii) the unit does not violate any restrictions in force, iii) value of plant and machinery is within prescribed limits and iv) the unit is not owned, controlled or subsidiary of any other industrial undertaking as per notification.

Online SSI Registration in India

Online SSI Registration can be obtained through IndiaFilings.com in many of the states. IndiaFilings can help you obtain MSME registration is mostly 10 to 20 days, subject to State Government processing time. For more information visit, IndiaFilings.com SSI / MSME Registration page.

For more information about the benefits of SSI registration, you can also refer to the following articles:

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Frequently Asked Questions

Common questions about Online SSI Registration for Small Industries in India.

SSI Registration, or Small Scale Industry Registration, is a registration provided by the Ministry of Micro, Small and Medium Enterprises in India. It acts as recognition for small businesses, making them eligible for various government schemes, subsidies, and incentives aimed at boosting small enterprises in the country.

Obtaining SSI Registration is not mandatory, but it offers several benefits to small businesses, including priority sector lending from banks, reduction in loan interest rates, excise exemptions, tax exemptions, statutory support like the Interest on Delayed Payments Act, and various subsidies from central and state governments related to industrial estates, power tariffs, capital investment, and more.

For manufacturing units, the investment in plant and machinery (excluding land and buildings) should be within the prescribed limits: up to Rs. 25 lakhs for micro enterprises, up to Rs. 5 crores for small enterprises, and up to Rs. 10 crores for medium enterprises. For service rendering units, the investment in equipment (excluding land and buildings) should be within the limits: up to Rs. 10 lakhs for micro enterprises, up to Rs. 2 crores for small enterprises, and up to Rs. 5 crores for medium enterprises.

The process typically involves three steps: first, applying for a Provisional SSI Registration Certificate (PRC) to help obtain loans and clearances; second, starting the business; and third, applying for a Permanent SSI Registration once the business commences production or activity, which unlocks various benefits and incentives.

Several states in India offer the option to apply for SSI Registration online. The article mentions that IndiaFilings.com can help obtain MSME (SSI) registration in many states within 10 to 20 days, subject to the state government's processing time.

The article does not provide specific details on the documents required for SSI Registration. However, common documents needed may include proof of identity, address proof, business incorporation or registration documents, details of the proposed business activity, investment details, and other relevant licenses or clearances.

Yes, the article mentions that Provisional SSI Registration is valid for five years. If an entrepreneur is unable to set up the unit within this period, a fresh application for provisional registration needs to be made after five years.

Yes, SSI Registration is not a mandatory requirement for a small business in India. However, obtaining it allows businesses to avail various benefits, incentives, and support provided by the central and state governments.

While the article mentions that states have adopted uniform registration procedures as per MSME guidelines, it also states that some states have made modifications to the procedures for obtaining SSI Registration. Therefore, the process for obtaining registration may vary slightly from state to state.

Apart from the benefits listed in the article, such as priority sector lending, tax exemptions, and subsidies, the article does not provide additional details on other potential benefits of SSI Registration for small businesses in India.