Why NSIC- Single point registration Scheme for MSMEs?

As we know that the Government is also largest buyer of a variety of goods & services. The Government Stores Purchase Programme was launched in 1955-56 to create opportunity in increasing the share of purchases from the small-scale sector,

Further Single Point Registration Scheme (SPRS), a startup scheme launched in 2003 and managed by the National Small Industries Corporation (NSIC).

Introduction

The Micro & small Enterprises (MSEs) is registered under Single Point Registration scheme (SPRS)  by NISC for participation in Government Purchases.

Classification of an enterprise as a micro, small or medium enterprise is depend on the basis of the following criteria, namely: -

• A micro enterprise, where the investment in plant and machinery or equipment does not exceed  one crore rupees and turnover does not exceed five crore rupees;
• A small enterprise, where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and
• A medium enterprise, where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.

Benefits of Registration

The units who get registration under Single Point Registration Scheme of NSIC are eligible to get the benefits under Public Procurement Policy for Micro & Small Enterprises (MSEs) Order 2012 as notified by the Government of India, Ministry of Micro Small & Medium Enterprises, New Delhi vide Gazette Notification dated 23.03.2012 and amendment vide order no. S.O. 5670(E) dated 9th November 2018.

• Issue of the Tender Sets free of cost;
• Exemption from payment of Earnest Money Deposit (EMD);
• In tender participating MSEs quoting price within price band of L1+15 per cent shall also be allowed to supply a portion upto 25% of requirement by bringing down their price to L1 Price where L1 is non MSEs.
• Every Central Ministries/Departments/PSUs shall set an annual goal of minimum 25 per cent of the total annual purchases of the products or services produced or rendered by MSEs. Out of annual requirement of 25% procurement from MSEs, 4% is earmarked for units owned by Schedule Caste /Schedule Tribes and 3% is earmarked for the units owned by Women entrepreneurs.
• In addition to the above, 358 items are also reserved for exclusive purchase from SSI Sector.

Eligibility

All Micro & Small Enterprises having Udhyam Registration Number ,EM Part-II (Optional)/ Udyog Aadhaar Memorandum (UAM) possess their own workshop or on lease basis are eligible for registration.
Micro & Small Enterprises who have already commenced their commercial production but not completed one year of existence. The Provisional Registration Certificate can be issued to such Micro & Small Enterprises under Single Point Registration scheme with monitory limit of Rs. 5.00 Lacs which shall be valid for the period of one year only from the date of issue after levying the registration fee and obtaining the requisite documents.

REGISTRATION FEE

The registration Fee is based on the Net Sales Turnover as per latest audited Balance Sheet of the Micro & Small Enterprise for the Registration, Renewal and any other amendment etc.

Documents Required

A. Applicants should ensure enclosing the following documents in duplicate (duly self attested)

• Declaration of having made entry in MSME Data Bank
• Self-attested copy of PAN, Udyam Registration Number, Udyog Aadhaar Memorandum (UAM) No. {Entrepreneur’s Memorandum (EM) Part-II (optional)}
• Proof of ownership of Plant & Machinery/Equipment & Tools and Raw Material
• showing date/year of purchase & Original Purchase value (NOT DEPRECIATED) of individual machinery
• Performance Statement as per Performa Annexure-F of the application.
• Self-attested copy of ownership documents of the premises or copy of lease deed.
• Certificate from the Proprietor/Partner/Directors whether or not they have any link with large scale Unit(s).

B. The below documents/statements duly signed by the authorized person may be furnished along with application:-

• List of technical personnel employed in production and services.
• Write-up on quality control measurement adopted by the firm for ensuring quality of raw material brought out item for assembly and sub-assembly and in process and 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.
• Latest Electricity Bill Copy.
• Audited Balance Sheet, Trading Account and Profit & Loss Account for the last 3 years duly signed by the authorized person under his seal.
• Statement showing the Results of Operation for the last 3 years duly signed by authorized person under his seal .
• Bankers’ Report giving details of financial status

C. Following documents/statements duly signed by the authorized person may be furnished In addition to the above documents:

Partnership Firm

• General Power of Attorney in favour of one of the Partners duly notarized
• Partnership Deed duly notarized.
• Form ‘A’ from Registrar of Firms showing the names of the partners.

Limited liability Partnership (LLP)

• Copy of Incorporation Certificate of LLP.
• Copy of Form 4 : contains  all information about the appointments of the designated partners and their consents.
• Copy of Form 2: shows the location of the main or registered offices of the LLP, details of all the partners, statements etc.

Companies

• Certificate of Incorporation duly authenticated
• Memorandum and Articles of Association duly authenticated
• Names of all Directors, their addresses and shareholdings
• Board Resolution as per prescribed format in favour of the Signatory of the application and documents

In Case of Cooperative Societies

• Certificate of Registration of Societies
• Society’s Bye-Laws/Regulations etc.
• Names of Members, their addresses and share-holding
• Current Certificate from Registrar of Societies 
• Details of authorized share capital 
• Details of movable as well as immovable property owned by the Society
• Resolution of Society for seeking registration under Government Purchase Program
• Resolution for authorizing the Signatory for certification on behalf of society for application & documents.

REGISTRATION PROCESS

• The Micro & Small Enterprises shall apply on the prescribed application form (in duplicate) along-with requisite fee and documents to the Zonal/Branch/Sub Branch and Sub Office/Extension office of NSIC
• Duplicate copy of the G.P. Registration Application Form submitted by the Micro & Small Enterprise will be forwarded to the concerned Inspecting agency along with copies of required documents and requisite Proof of inspection charges remitted in favor of concerned Inspection Agency requesting for carrying out the Technical Inspection of Micro & Small Enterprise and forward their recommendations in this regard.
• on receiving Inspection Report from concerned inspection agency, NSIC will issue the SPRS Registration Certificate to Micro & Small Enterprise for items/stores as recommended.

Procedure for calculation & fixation of Monetary Limits of Micro & Small Enterprises.

Monetary limit of the company is fixed on the basis of the unit's net sales turnover during the last three years reflected in the Audited Balance Sheets.

Monetary limit will be fixed on the basis of highest turnover during the last three year which may or may not be of last year provided the units installed and operating capacity has not been reduced.

1. In case there is no downward (I.e. decrease) in plant and machinery, than 50% of highest turnover during the last 3 years reflected in audited balance sheet will be the basis for fixation of monetary limit.

2. In case there is downward (I.e. decrease) in plant and machinery for more than 10%, the below ponits will be considered:

• Where the turnover of the Enterprise has steadily increased over the last three years and the unit is in profit continuously, then the Monetary Limit may be fixed at 50% of net sales turnover achieved in the last year
• In case the Company/Partnership concern/Proprietorship unit is in loss for one year out of past three years, their monetary limit will be fixed at 40% of their average net sales turnover.
• Similarly, when the Micro & Small Enterprise is in loss for two years out of the past three years, the monetary limit will be accordingly fixed at 30% of their average net sales turnover of the past three years.
• In the event of Micro & Small Enterprise being in loss throughout past three years, the monetary limit of the Unit will be fixed at 20% of the average sales (net)  turnover of the Unit during the past three years.

Validity Period of G. P. Registration

The validity period of the Registration Certificate granted to the Micro & Small Enterprise under Single Point Registration Scheme (Revised), 2003 is for Two Years. It will be reviewed and renewed after every two years by proper verification of continuous Commercial and Technical Competence of the registered Micro & Small Enterprise in manufacturing / producing the stores for which it has been registered by NSIC.

Conclusion

The NSIC through single point registration scheme enhances the opportunity of  promotion and development of Micro and Small Enterprises by supporting them in marketing of products produced and services rendered by them.

The author can also be reached at  sandeeprawatca@gmail.com

Source

• Public Procurement Policy for Micro & Small Enterprises (MSEs) Order 2012 as notified by the Government of India, Ministry of Micro Small & Medium Enterprises, New Delhi vide Gazette Notification dated 23.03.2012 and amendment vide order no. S.O. 5670(E) dated 9th November 2018.
• http://www.nsicspronline.com/home.aspx