Small Scale Industry or SSIs are one of the most crucial section of the Indian Economy. In this blog, I will be discussing the SSI registration process. If you have not read our previous blog about SSI, we recommend reading it first here.
In this blog, I will explain the SSI registration process, Document necessary for SSI registration, Eligibility and Benefits of SSI registration.
Let’s get started without wasting too many words!
The registration process of SSI
Ministry of MSME (Micro, Small and Medium Enterprises) provides SSI registration through Directorate of Industries of the respective State Governments. Once you set up your SSI business in India, you can begin the SSI registration process. The sole purpose of SSI registration is to avail numerous benefits offered by the Government to grow SSIs.
The process is simple, and you can do it yourself. But as it needs some paperwork and legal formalities, we recommend getting help from some certified Business registration expert. The application can be made in online and offline modes.
Steps of SSI registration
- The Owner or Partner will have to fill a single SSI registration form, either online or offline.
- There is no registration fees for making an application.
- Individual registration has to be done for different businesses by a single owner.
- All the certificates must be self-certified before the submission.
- Registration certificate and SSI registration number will be obtained shortly after the completion of the application.
Documents necessary for SSI application
Following documents will be needed for SSI registration:
- Aadhar Card of the Owner or Partners (if applicable)
- Address of the Business Place
- Name of the Business
- Bank account details
- PAN
Benefits of SSI registration in India
The Government of India understands the importance of SSIs in the Indian Economy. This importance has prompted the Government to offer certain benefits to SSIs. Let’s take a look at all the benefits of SSI registration in India.
- The Government issues multiple tenders which are open for SSIs only. So if you have registered your business as an SSI, you will be able to place the bidding.
- The Government offers a large number of Tax benefits and Tax rebates to the registered SSIs.
- If you have an SSI registration, obtaining various Government License becomes very easy.
- Instead of 10 years, SSIs can carry forward MAT (Alternate Minimum Tax) for 15 years.
- Registered SSIs can get funding and credit quickly.
- The Government also offers concessions in Patent registration, Electricity bills and various other expenses necessary for running a business.
Eligibility criteria for SSI registration
Depending on the nature of the business, there are different criteria for SSI registration for different industries.
SSI registration can be obtained for both:
- Manufacturing Industry
The SSI registration criteria for Manufacturing Industry depend on the investment made in the machinery and other equipment.
Following is the threshold for SSI registration (excluding the cost of Land and Building)
Micro Enterprise: Only if the investment is equal to or below INR 25 lakh
Small Enterprise: Only if the investment is equal to or below INR 5 crore
Medium Enterprise: Only if the investment is equal to or below INR 10 crore
- Service Industry
The SSI registration criteria for Service Industry depend on the investment made in the machinery and other equipment.
Following is the threshold for SSI registration (excluding the cost of Land and Building)
Micro Enterprise: Only if the investment is equal to or below INR 25 lakh
Small Enterprise: Only if the investment is equal to or below INR 5 crore
Medium Enterprise: Only if the investment is equal to or below INR 10 crore
Why SSIs are critical for Indian Economy?
- They are boosting the growth and development in the Rural and remote areas of India.
- They are reducing the regional economic imbalance by offering equal economic growth to all the regions.
- They generate a lot of Employment.
- They ensure that every corner of India thrives with Financial and Economic activities.
- They scale-up the living-standard of rural India.
- They can help boost the export capacity of India.
- They can transform India into a Global Manufacturing Hub by creating top-quality products at affordable rates.
- They ensure all the resources are utilized optimally throughout the nation.
Conclusive thoughts
SSI registration is beneficial for the Owners in every matter. The process is quick and easy, so we recommend you get your SSI registered so you can avail all the benefits offered by the Government.
If you feel the process is bit complex for you or need any assistance, please reach us.
We will help you through the entire process and beyond so you can sit back and relax!
Probal Consulting Group is a leading Taxation, Accounting, and Compliance firm that helps individuals, MSMEs, and other businesses manage their accounting, taxation regulatory compliance affordably.
