The term NSIC stands for National Small Industries Corporation. It is an authority of the Government of India and is under the aegis of the Ministry of Micro, Small, and Medium Enterprises (MSME). NSIC helps to promote, foster, and aid the growth of the MSME businesses in India. For this, it operates a wide variety of programs such as the following:

Single Point Registration Scheme
Marketing Intelligence
Consortia & Tender Marketing
Raw Material Assistance Scheme
Procurement Marketing Scheme
Procurement and Marketing Assistance Scheme
Performance and Credit Rating Scheme
Infomediary Services
Bill Discounting Scheme
Skill Development Service
Credit Facilitation by Banks

In 1995 NSIC was set up by the Indian government. It presently holds the ISO 9001:2015 certification, and it is a Mini Ratna PSU (public sector undertaking).

Benefits of Getting NSIC Registration

The benefits of registering with NSIC are enumerated below:

You can get tenders without paying any money for the same
It helps you progress as a small-scale industry
It makes you a lot more proficient as an MSME
You get some leeway in the government tenders
You get invaluable assistance from different support services
You get to choose from various consultancy services
You do not have to pay any EMD (earnest money deposit)

Eligibility Criteria for NSIC Registration

These are the most entitled criteria of SPRS registration.

Every Micro and Small Enterprises (MSEs) involved in manufacturing & Services are eligible for NSIC (National Small Industries Corporation) registration.
The MSE start-ups already started their commercial production, but not completed one year of existence are eligible for NSIC Provisional Registration for one year. MSEs can apply for full registration through Single Point Registration after completion of one year.
All MSEs (Micro and Small Enterprises) having EM Part-II/ Udyog Aadhaar Memorandum (UAM)/ Udaym Registration are eligible for NSIC registration.

Process Involved in Getting NSIC Registration Certificate

Companies in both services and manufacturing sectors can register for the same as long as they are an MSME or have registered for the Udyog Aadhaar program.

To register with the program, the applicants have to send an online application. Else, they may also visit an NSIC office and submit their application over there. Whenever an application is submitted, it gets forwarded by the NSIC to a zonal, sub-branch, or branch office. It is decided based on the proximity to the applicant. It helps with the completion of the technical inspection of said unit. It is after the inspection that they forward the recommendation for registration with the NSIC. When the NSIC gets the inspection report, it provides registration to the MSME unit that had applied for the same.

Process of NSIC Single Point Registration

Before doing Single Point Registration, it is advisable to go through the checklist and download section for knowing about which forms, annexure and documents required.

Get Udyam Registration for SME first
Register in MSME Data Bank using Mobile No, UAM No and PAN to get registered for Single Point Registration
Fill 7 steps of Single Point Registration and proceed each step with Save and Continue
Make payment on the basis of Enterprise category (Micro or Small)
Third party inspection will be carried out for unit verification. Units are requested to choose inspection agency according to their domain expertise and jurisdiction.
SPRS Certificate will be available online, you can download it. NSIC office will send physical Certificate copy to your address by post.

Documents Required for NSIC Registration

The following documents are necessary to register for NSIC:

Copy of MSME registration acknowledgment
Copy of type test reports from independent labs – this is applied as per the relevant standard.
Details about plant along with raw material and machines plus the original price of purchase
Copy of latest electricity bill
Performance statement
Audited balance sheet, profit & loss statement, and trading account
Self-attested lease deed copy or copy of ownership documents of business premises
Account-related information for the previous three years signed by an authorized person using their official seal
Certificate or declaration from the proprietor, director, or partner regarding their connections with large-scale units or lack thereof
Statement on results of operation for the previous three years – it must be signed duly by a chartered accountant using their seal
List of finished goods and raw materials in stock
Report from the banker providing details of the financial status of the firm that has applied – this needs to be as per Performa F in the application form
copy of BIS (Bureau of Indian Standards) license if necessary
copy of PAN (permanent account number) card
copy of ISO (International Organization for Standardization) 9000 – this is optional
Partnership deed
List of technical employees working in services and production
Form A from the Registrar of Firms shows the names of the partners
Items for which registration required along with specifications in detail
Certificate of incorporation
Write-up on quality control measures followed by the applicants to make sure that the raw material is of high quality – this is also applicable for the likes of bought out items for sub-assembly and assembly, finished products, and stores & products in the process
Articles and memorandum of association
List of testing facilities and quality control equipment available in the factory

Charges Applicable for NSIC Registration

The total money you pay to register with the NSIC is based on your MSME classification and the annual turnover of your business. If you are a micro-enterprise and your turnover is less than a crore, you would have to pay a registration fee of 3000 rupees. However, if it’s a small enterprise with a turnover of more than a crore, you need to pay 5000 rupees for registration. If you are a micro-enterprise and your turnover is more than one crore, you would have to pay 3000 rupees along with 1500 rupees for each extra crore.

If you are a small enterprise with a turnover exceeding one crore, you would have to pay 5000 rupees along with 2000 rupees for each extra crore. The registration fee cannot exceed 1 lakh rupees. Inspection charges are applicable in these cases as well. The fees decided by the agency are for said inspection. The small enterprises usually have to pay 3000 rupees, and the micro-enterprises have to pay 2000 rupees for inspection.

The final fee charged is the professional fee. The fee is paid to the RITES Limited and Consultancy Development Centre – the money paid is for the physical inspection it will undertake. The micro-enterprises have to pay a professional fee of 6000 rupees, and the small enterprises have to pay 8000 rupees for the same.

Validity and Renewal of Registration

The validity of NSIC certificate will remain for 2 years of time period from the date of registration. And the MSEs can apply for renewal before 3 months of SPRS Certificate expiration. Facilities are available in NSIC Scheme. To get the benefits of this scheme, the enterprise owner can renew it in every two years thereafter and enjoy the scope of business management and marketing.

A good decision is taken by NSIC department, offering 50% discount on renewal fee for MSEs those who are coming before the expiry of SPRS certificate.

How can PatsonLegal Help You?

PatsonLegal is one of the best platforms to fulfil the dreams you have in this regard. It would coordinate everything for you and deal with all the financial and legal requirements in this particular case. It would connect you to all the right people so that you can get such registration done without any problem at all. They would make things simple for you, thus making it easier for you to understand the entire process.

MSME Registration: Classification, Documents, Process & Benefits

The term MSME is an abbreviation of micro, small, and medium enterprises. As far as a country like India, whose economy is still in the developmental stage, is concerned these industries can be regarded as the very spine that supports the economy as such.

It is said that around 45 percent of the total industrial employment of India is directly contributed by these companies. They also account for half of all the exports made by India and make up 95 percent of the total industrial units in the country. As per statistics provided by the MSME (Ministry of Micro, Small, and Medium Enterprises) is concerned these companies make around 6000 different kinds of products.

It can be said for sure that with the growth of these companies the country grows as well. These industries are also referred to as SSIs or small scale industries.

How are MSMEs Classified?

The MSMEs in India are classified by the MSME Act, 2006 that came into being on 2^nd October that year. The main aim to establish this act and the ministry was to make sure that MSMEs could be promoted, developed, and fostered so that they could be more competitive.

Recently, Government of India has planned to change the definition of MSME by redefining its classification, and providing some special benefits to the entities to push up their competitiveness, sustainability and growth.

Now, they are broadly present in two sectors – Service and Manufacturing same as earlier classification. But, they are normally categorized in terms of the investment and annual turnover. Means what they’ve invested in plant & machines for manufacturing industry, and earnings annually for service industry such as:

Manufacturing enterprises – Investment in plant & machinery
Service enterprises – Annual turnover

Manufacturing industries are categorized on the basis of their amount invested in plant and machinery:

Micro enterprises: These businesses are one that could be invested less than INR 1 crore;
Small enterprises: These businesses are one that could be invested between INR 1 crore and INR 10 crore; and
Medium enterprises: These businesses are also one that could be invested between INR 10 crore and INR 20 crore.

In the context of service sector, these industries are also categorized on the basis of their annual turnover:

Micro enterprises: These businesses are one that could be invested less than INR 5 crore;
Small enterprises: These businesses are one that could be invested between INR 5 crore and INR 50 crore; and
Medium enterprises: These businesses are one that could be invested between INR 50 crore and INR 100 crore.

Existing MSME Investment chart as per Ministry of Micro, Small & Medium Enterprises

Enterprises	Manufacturing Sector	Service Sector
Enterprises	Investment in Plant & Machinery	Investment in Equipment
Micro Enterprise	Doesn’t exceed Rs. 25 lakh	Doesn’t exceed Rs. 10 lakh
Small Enterprise	More than Rs. 25 lakh but doesn’t exceed Rs. 5 crore	More than Rs. 10 lakh but doesn’t exceed Rs. 2 crore
Medium Enterprise	More than Rs. 5 crore but doesn’t exceed Rs. 10 crore	More than Rs. 2 crore but doesn’t exceed Rs. 5 crore

Revised MSME Classification Scheme

Enterprise Classification	Manufacturing Sectors	Service Sectors
Enterprise Classification	Based on Investment	Based on Turnover
Micro	< Rs. 1 crore	< Rs. 5 crore
Small	< Rs. 10 crore	< Rs. 50 crore
Medium	< Rs. 20 crore	< Rs. 100 crore

Role of MSMEs in India’s Growth

The key role of MSMEs are vast, here we have just mentioned only 6 points:

To generate large scale employment opportunities in India at low cost capital
To provide maximum opportunities for both self-employment and wage-employment
To create flexible environment to ensure competitive innovation
To enhance the regional social structure and its development
MSME sector contributes enormously to the socio-economic development of the country
To build an inclusive, sustainable and equitable livelihoods of society in innumerable ways

What are the Benefits of Registering Your MSME?

There are several advantages of registering your MSME. Here are the top 6 key benefits of MSME registration comes from government side:

First of all, when you do this you can get bank loans at much lower rates of interest. In fact, it can get to as low as 1 or 1.5 per cent. As you would know this is much less than the rate of interest applicable for repayment of normal business loans.
You also get a number of tax rebates as well.
You also get credit facilities for minimum alternate tax (MAT). This can be taken up to a maximum of 15 years instead of the normal limit of 10 years.
As an MSME you also have the sole right to apply to a number of tenders issued by governmental agencies.
You also have quite easier access to credit. This way, you also get a number of concessions and rebates that help you set up your industry or even perform business related work such as registering a patent.
You would also get better preference when it comes to various certificates and licenses issued by the government.

What are the Documents Needed for MSME Registration?

Here are some essential documents we required to get the information about the organization and its activity:

Aadhaar Card of entrepreneur is must required
Proprietorship PAN Card is must required, if it is sole proprietorship firm
Company PAN Card is must required for Pvt Ltd/ LLP/ OPC/ Partnership
Certificate of Incorporation (COI) of company
Address proof of business place
Bank details (A/C Number, IFSC code)
Nature of the business
Investment of capital in business
Number of employees working in your organization

Normally as a business entity in these cases you need to furnish your business address proof, copies of sale bill and purchase bill, partnership deed or MoA (Memorandum of Association) and AoA (Articles of Association), and copy of bills and licenses of machinery that you have bought for your business.

If you own the premises you can provide allotment letter, lease deed, possession letter, or receipt of property tax as proof of your business address.

If you have a municipal license in the name of your business or even in the name of the business owner, director, or partner you need not provide any other possession document as such.

If you have rented the premises you may furnish rent receipt as well as a no objection certificate from your landlord. You would also need to submit utility bills or any other document that supports the ownership of the landlord.

As far as copies of sale bill and purchase bill are concerned you have to provide copies of sale bills for each and every product that you are selling. Much in the same way, you also need to provide a purchase bill for each raw material that you have bought.

As far as partnership deed or MoA and AoA are concerned you would need to submit the partnership deed in case you are a partnership firm. Now, if you are registered officially as a partnership firm you would need to submit the registration certificate as well.

In case you are any other kind of company you would have to provide the MoA and AoA. Along with you need to provide your certificate of incorporation as well. In these cases you would also need to submit a copy of a general meeting resolution as well as the copy of a board resolution that has permitted a director to sign said application.

MSME Registration Process

Aadhaar number is compulsory needed for registering your business enterprise online under the MSME, Act; and to get this Udyog Aadhaar registration number you have to apply it through Udyam Registration official website.

However, before going to do registration of your enterprise, keep handy the entire above said documents asides with you.

Make an application online with the help of your Aadhaar number and Name and generate OTP (remember that your mobile number should be linked to your Aadhaar).
Make confirmation of OTP which has sent to your mobile. It will be direct you to Udyog Aadhaar Form.
Fill the form online, from 1 to 21 fields of MSME Registration Form and click on Final Submit button. Then you will get the registration certificate along with your UAM (Udyog Aadhaar Memorandum) number.

We Help You Get Your MSME Your Certificate Instantly?

For registering your MSME in Bengaluru Karnataka or any other cities in India; you will get numerous good agencies in Bangalore. But, if you need our help, we will assist you in this matter as well as other business concerns also.

If you wish to register your small and medium scale industry you would have to first fill up a form. You can do it online or offline as well. If you wish to register for more than a single industry you can go for separate registration as well. The registration form for an MSME is available at the official website of Udyog Aadhaar. There are certain documents that you need to provide along with your application. You also need to fill up some basic information in this form. It may be enumerated as below:

Personal Aadhaar number
Industry name
Address
Details of bank account

While filling up the form in these cases you can also provide certificates that you have certified by yourself. Keep in mind that this process is absolutely free. You do not need to pay any registration fees for the same. Once you have filled in the details and uploaded the same you would get the registration number and certificate in due course of time.

Category: Govt Registration

How to Get NSIC Registration Certificate in Bangalore India