What is the Eligibility of SSI/MSME Registration?
This is a very important question that must be known to all, especially manufacturing companies. Enterprises having less than ₹10 crores of investment in plant and machinery are eligible for SSI/MSME registration India. On the other hand, service enterprises are also eligible provided their investment does not exceed ₹5 crores in the same.
It is expected that in the future, enterprises exceeding the prescribed limit will not at all be eligible for registration. After knowing the rules for SSI/MSME registration, it is high time to peep into the exclusive ways of obtaining the registration.
Procedure for Obtaining SSI/MSME Registration
In this digital age, almost every activity takes place online mode within a few clicks. Though the process for registration is variable from one state to the other, overall; the rules remain almost the same. Below is the step by step procedure that must be followed for SSI/MSME registration:
Application for provisional registration – To obtain the SSI/MSME registration, business owners must first and foremost apply for a provisional registration certificate. The provisional registration certificate is provided whenever the unit is in a pre-operative period. Application for provisional registration can be done anytime without any industrial license.
Giving a kick start to the business – Afterwards, it is the time to start the business with the help of the provisional certificate. Carrying out the task of production and other tasks will become easy.
Permanent registration for SSI/MSME – Post commencement of business activities, it will become easy for the business to apply for permanent SSI/MSME registration. Once done with the obtaining of the registration, the company will become liable for exemption from income tax, incentives, and availing raw material.
The perks associated with permanent registration for SSI/MSME are innumerable. But to obtain the same, the following conditions must be satisfied by the respective unit:
- Successful obtaining of necessary statutory and administrative clearance
- No violation of restrictions in force
- Plant and machinery value is within prescribed limits
- Unit is hardly owned or controlled by any other industrial undertaking
Benefits Associated with SSI/MSME Registration
The Indian government has taken the initiative to provide a wide range of benefits to businesses belonging to small, medium, and micro sizes. If you are interested to become eligible for the same, then SSI/MSME registration India is mandatory. The list of advantages that your enterprise will be enjoying includes the following:
- Collateral-free bank loans – First and foremost, a collateral-free bank loan is one of the exclusive benefits associated with registration. It will be eligible for both micros as well as small-sized enterprises.
- Hefty subsidy on patent registration – Enterprises having SSI/MSME registration will be eligible for obtaining a hefty subsidy at the time of carrying out patent registration. The discount will be almost 50% of the actual charge.
- Exemption on overdraft – SSI/MSME registration makes the enterprise eligible for obtaining a good percent exemption on the interest rate in case of over-drafting. The percentage may vary a bit from one bank to the other, but the overall result will be something favorable.
- Eligible for subsidy on industrial promotion – Enterprises having SSI/MSME registration will become eligible for obtaining an industrial promotion subsidy. It will help the enterprise owner to come up with new business ideas as it will have extra finance in its hands.
- High concession in electricity bills – The pocket-burning electricity bills give nightmares to the enterprise owners. Having MSME registration will let them enjoy lucrative benefits of subsidy on electricity bills to a high extent.
- High protection against delayed payment – Post obtaining the SSI registration, the Ministry dealing with micro, small and medium enterprises will provide high protection in case of delayed payments. The delayed payment takes place from the side of the buyers. The settlement of the dispute will be done through conciliation and arbitration.
- High reimbursement on the charges of ISO certification – MSME registration will let the enterprise obtain high reimbursement on the charge required for ISO certification. Once the application will be done to the respective authority, further processing will start with time.
These are some lucrative benefits that can be obtained through SSI/MSME registration by enterprises. Are you looking for a reliable place to carry on with the process? Why not approach MyRegistration.in?
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