Eligibility Criteria For Small Scale Industries Registration
Any type of business entity such as Proprietorships, HUFs, Partnerships, OPCs, LLPs, or Companies can be classified as an MSME as per the MSMED Act, 2006, and are eligible to apply for the MSME online certification. The classifications of the MSMEs are based on the investment in plants and machinery.
Revised Classification is applicable w.e.f. 1st July 2020 and accordingly composite criteria with respect to Investment in Plant Machinery/equipment and Annual Turnover is as follows:
- Micro: Investment in Plant and Machinery or Equipment is not more than Rs.1 crore and Annual Turnover not more than Rs. 5 crores
- Small: Investment in Plant and Machinery or Equipment is not more than Rs.10 crore and Annual Turnover not more than Rs. 50 crores
- Medium: Investment in Plant and Machinery or Equipment is not more than Rs.50 crore and Annual Turnover not more than Rs. 250 crores
Registration of (SSI) under MSME:
Small Scale Industries Registration is providedby the Ministry of Micro, Small and Medium Enterprises (MSME) Act. For all businesses should get SSI registration in order to be eligible for a number of schemes, subsidies, and other benefits provided by the Government. The main reason behind the SSI registration is to set up new small-scale businesses in India. We can also apply for SSI/MSME registration online throughUdyam Registration,also known by the old name Udyog Aadhar Registration.
Benefits of SSI registration:
- Loans without collaterals: The Government of India initiated various schemes and reforms to upgrade small-scaled business enterprises through this Udyam certificate that allows to avail credit without collateral. This is the best Udyam benefit for small-scale business owners as it offers a collateral-free loan that is accepted by the Government of India, Small Industries Development Bank of India, and the Ministry of Micro, Small, and Medium Enterprise under the name The Credit Guarantee Trust Fund Scheme.
- Subsidy on Patent Registration Industrial Promotion: Small and medium scale business enterprises registered under the Ministry of Micro, Small and Medium Enterprises Development Act, 2006, get a heavy subsidy for patent registration and Industrial promotion.
- Overdraft facility along with Interest Rate Exemption: Enterprises having Udyam certificate are eligible to get a benefit on the overdraft as part of the Credit Guarantee Trust Fund Scheme. Note: This can vary from bank to bank.
- ISO Certification Charges Reimbursement: An Udyam registered small-medium enterprise can claim the expenses for reimbursement that were spent on ISO certification.
- Concession on Electricity: Small businesses registered under the new MSME Udyam registration Portal may get some concession on electricity bills.
- Helps in Getting Government Tenders: Micro, small and medium owners can take part in Government tender auctions. They can easily avail exemption while applying for government tenders.
- Becomes Easy to Get Licenses, Approvals, and Registrations: With this new Udyam registration certificate, business owners are eligible to apply for other official certificates, approvals, and registrations in India.
- Get Exemption Under Direct Tax Laws: The Government helps registered Udyam companies, in the reduction or removal of a liability. It may provide complete relief from taxes, reduced rates, or tax on only a portion of items.
- Take Part in International Fairs: The Indian government encourages and approves Udyam registered startups, entrepreneurs’ companies, and existing small-medium businesses to take part in international fairs, to display and promote their products and services.
SSI and MSME both are the same?
Yes, there is no difference between MSME and SSI registration. It provides services that are all done on a small scale or micro scale. Later, the government passed the (Micro, Small, and Medium Enterprises) MSME Act. The small and micro industries arrived under the MSME Act.
GST registration is mandatory to apply for SSI registration?
It is not mandatory to have a GST registration for getting an MSME/SSI registration when the enterprise is not protected under the GST act. If the enterprise demands GST registration under the GST Act, then such businesses need to mandatory get GST registration for applying to SSI/MSME registration.