Sme registration

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Querist : Anonymous (Querist)

16 October 2013 Please tell me procedure for SME registration
Central Goverment scheme.

Thanks.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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16 October 2013 Registration of MSME

BENEFITS OF SSI/MSME REGISTRATION

The registration scheme has no statutory basis. Units would normally get registered to avail some benefits, incentives or support given either by the Central or State Govt. Benefits available under the MSMED Act Registration of Micro, Small and Medium (MSM) Enterprises under MSMED Act is a very powerful medium to enjoy the regime of incentives offered by the Centre generally contains the following:

Micro and Small Enterprises:

Easy finance availability from Banks, without collateral requirement
Protection against delay in payment from Buyers and right of interest on delayed payment
Preference in procuring Government tenders,
Stamp duty and Octroi benefits,
Concession in electricity bills
Reservation policies to manufacturing / production sector enterprises
Time-bound resolution of disputes with Buyers through conciliation and arbitration
Reimbursement of ISO Certification Expenses
Credit prescription (Priority sector lending), differential rates of interest etc.
Excise Exemption Scheme
Exemption under Direct Tax Laws.
Stamp duty and Octroi benefits,
Statutory support such as reservation and the Interest on Delayed Payments Act.
Subsidy on ISO Certifications
Subsidy on NSIC Preformance and Credit ratings
Participation in Govt Purchase registrations
Regsiattion with NSIC
Counter Guarantee from Govt of India through CGSTI
Waiver in Earnest Money (Security Deposit ) in Govt tenders
Stamp duty and Octroi benefits,
15% weightage in price Preference.
Reduction in rate of Interest from banks (Subject to ratings)
Free of Cost Govt tenders

(It is to be noted that the Banking Laws, Excise Law and the Direct Taxes Law have incorporated the word SSI in their exemption notifications. Though in many cases they may define it differently. However, generally the registration certificate issued by the registering authority is seen as proof of being SSI).

States/UTs have their own package of facilities and incentives for small scale. They relate to development of industrial estates, tax subsidies, power tariff subsidies, capital investment subsidies and other support. Both the Centre and the State, whether under law or otherwise, target their incentives and support packages generally to units registered with them.

GENERAL INSTRUCTIONS

MEMORANDUM IS TO BE FILED WITH THE DISTRICT INDUSTRIES CENTRE*, BY A MICRO, SMALL OR MEDIUM ENTERPRISE, AS THE CASE MAY BE, UNDER SUBSECTION (1) OF SECTION 8 OF THE MICRO, SMALL & MEDIUM ENTERPRISES DEVELOPMENT (MSMED) ACT, 2006.
THREE COPIES OF MEMORANDUM FOR MICRO AND SMALL ENTERPRISES AND FOUR COPIES FOR MEDIUM ENTERPRISES SHOULD BE FILED\
THERE IS NO FEE FOR PROCESSING THE MEMORANDUM.
EXISTING UNITS SHOULD FILL UP ONLY PART II OF THE MEMORANDUM.
IN CASE OF ANY CHANGE IN THE INFORMATION, AT ANY POINT OF TIME, PLEASE INFORM THE DETAILS WITHIN THREE MONTH TO DIC.
WRITE / TYPE IN BLOCK (CAPITAL) LETTERS
LEAVE ONE BLANK BOX AFTER EACH WORD.
FILL UP WHICHEVER IS APPLICABLE.
ALL CODES OTHER THAN PIN CODE SHALL BE FILLED BY THE OFFICE.
FORM WILL BE MACHINE NUMBERED BY THE DISTRICT INDUSTRIES CENTRE.

Procedure for Registration

Features of the present procedures are as follows:

A unit can apply for PRC for any item that does not require industrial license which means items listed in Schedule-III and items not listed in Schedule-I or Schedule-II of the licencing Exemption Notification. Units employing less than 50/100 workers with/without power can apply for registration even for those items included in Schedule-II.
Unit applies for PRC in prescribed application form. No field enquiry is done and PRC is issued.
PRC is valid for five years. If the entrepreneur is unable to set up the unit in this period, he can apply afresh at the end of five years period.
Once the unit commences production, it has to apply for permanent registration on the prescribed form.

The following form basis of evaluation:

The unit has obtained all necessary clearances whether statutory or administrative. e.g. drug license under drug control order, NOC from Pollution Control Board, if required etc.
Unit does not violate any locational restrictions in force, at the time of evaluation.
Value of plant and machinery is within prescribed limits.
Unit is not owned, controlled or subsidiary of any other industrial undertaking as per notification.

more info:

VITAL CONSULTING
Ist Floor, 18, Raja Garden, Opp. Canara Bank, Near Metro Pillar No 381, New Delhi- 110 015.
Office: (L):011-65888706, 97162-57859
Direct: (M)+(91)-97162-31789, 97160-41789
E-mail: vitalconsultingindia@gmail.com