SMALL SCALE INDUSTRIES REGISTRATION
Small scale industries have a significant role in the socio-economic development of our country. The government has created the MSMED Act to encourage and promote these industries as they help in the employment of people at little capital investments. Small scale industries in India that are undertaking with an investment that exceeds Rs. 25 lakhs but does not exceed Rs. 5 crores in plant and machinery require obtaining registration with the District Industries Centre (DIC) of the concerned State Government that acts as the focal point of the industrialization of the district.
The purpose of registration of small scale industries (SSI) is to maintain a roll of such units and collect statistics for providing support and package of incentives. The registration scheme of SSI provides certain benefits that companies can avail of. Each state has its own package of incentives and facilities for SSI that are related to the development of industrial estates, capital investment subsidies, tax subsidies, power tariff subsidies, and other support services.
There are two types of certificates that are provided by the authorities when registering small scale industries –
Provisional Registration Certificate (PRC): This is issued to the companies initially for the pre-operative period which is usually valid for 5 years. With PRC, small scale industries can obtain working capital and term loans from banks or financial institutions, various clearances and NOCs from Pollution Control Board, Labour Regulations and other regulatory bodies, and also obtain facilities for land, accommodation, power connection, and other approvals.
Permanent Registration Certificate: This is issued in perpetuity after the commencement of production. This certificate enables small scale units to avail sales tax and income tax exemption as per the policy of the state government. It also allows units to avail incentives and concessions on power tariff, availability of raw material, and also price and purchase preference for goods produced.
Important Documents required in the procedure of Provisional Small Scale Industries Registration:
Several necessary documents have to be attached along with your online application for Provisional SSI registration as follows:–
Proof of legal possession and ownership, rent receipt, NOC from the landlord, the power load authorized to the applicant by the connection holder.
In the case of Private Company, the certificate of incorporation along with the copy of the Memorandum and Articles of Association.
In the case of a partnership unit, the photocopy of the partnership deed.
A detailed scheme of the proposed unit if the project comes under special category of Pollution Control or if the cost exceeds Rs. 40 lakhs.
Pollution Control Certificate for Consent to prove that restrictions are not being violated.
Industrial license in case the unit is not listed in Schedule-III of the Industrial Licensing Exemption Notification.
Important Documents required in the procedure Permanent Small Scale Industries Registration:
Proof of legal possession and ownership of premises. If the unit has a municipal corporation license in the name of its proprietor or one of the partners/directors or in its own name, no other proof of legal possession is required. In case the premises are arranged on rent, rent receipt and NOC from the landlord is required.
Photocopy of purchase bill of each raw material.
Photocopy of sale bill of each end product applied for.
Purchase bill of machinery installed.
Photocopy of valid Pollution Control Certificate for Consent to operate from the appropriate authority depending on the category of industry.
An affidavit duly attested by Notary Public that establishes the status of the unit, activity, power requirement, machinery installed, etc. are in accordance with laid down procedures, norms, and prescribed format mentioned by the authority.
To make the process of small scale industries more streamlined, a new act was created in 2015 which is called Udyog Aadhaar. It replaces the previous procedure for registration. The Udyog Aadhaar is conducted online where applicants need to fill up only one page along with Aadhaar Card as a legal document for registration. Under the Udyog Aadhaar, applicants are offered schemes such as Udyog Aadhaar Memorandum (UAM), Zero Defect Zero Effect, A System for Monitoring the Grievances, and Quality Management Standards and Quality Technology Tools.
You can apply for the SSI registration through online application at the official website of the Directorate of Micro, Small & Medium Enterprises, Government of West Bengal.
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