SSI Registration or Small Scale Industry Registration is a registration from the Ministry of Micro, Small and Medium Enterprises. Once you obtain the registration the registration for SSI and MSME, you are eligible for all subsidies and schemes that are given out by the government.
Manufacturing units, as well as enterprises that provide services can apply for SSI registration. The clauses under which SSI units in manufacturing and SSI units in services are qualified for registration slightly vary.
Each of the State Government has a set of procedures that are regulated as per the MSME guidelines. However, some States have different thresholds to the procedures for obtaining SSI Registration. Therefore, the procedure for obtaining registration would vary from State to State.
Registration of an existing or proposed small scale enterprise is voluntary and not compulsory. However, there are many advantages that are incurred when the business is registered. Some of the incentives so obtained by them are:
The State Directorate or Commissioner of Industries or District Industries Centres (DIC's) are the concerned authorities for registration of small scale units. This registration is both location specific and product specific. Like in certain State capitals and metropolitan cities, it is granted to only those units which are located in the designated industrial areas/estates.
A small scale unit is generally subjected to two types of registration:
Initially, a provisional registration is granted for the industry, It is termed as provisional because the enterprise is yet to launch completely. It is granted for a specified deadline within which the industry must start being fully functional. A 'Provisional Registration Certificate (PRC)' enables the unit to obtain :-
Though, provisional registration is not compulsory for getting a permanent registration. But, a provisional certificate is highly instrumental in setting up the other formalities of the enterprise.
Such a registration procedures is generally uniform across the States. However, there may be some modifications done by individual States. For example, certain States may have a 'SIDO registration scheme' and a 'State registration scheme'. But, whatever be the registration scheme, the main goal of the scheme is to maintain statistic rates and a roll of such units for providing incentives as well as to create a nodal center of power at the Centre, State and District levels to promote SSIs.
A small scale unit may also become liable for de-registration, if it crosses the investment limits; starts manufacturing any new item or items that require an industrial license or other kind of statutory license; or does not satisfy the condition of being owned, controlled or being a subsidiary of any other industrial undertaking.
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