MSME/SSI REGISRTATION

UNDERSTANDING MSME/SSI Registration

MSME stands for micro, small and medium enterprises and any enterprise that falls under any of these three categories. MSME enterprises are the backbone of the Indian economy and are an engine of economic growth, promoting equitable development for all. Micro, Small, and Medium-sized enterprises in both the manufacturing and service sector can obtain MSME Registration under the MSMED Act through Mibook.

IS SSI REGISTRATION IN INDIA MANDATORY?

The MSME/SSI Registration in India is only needed to avail benefits and subsidies provided by the government to small-scale industries and service providers from time to time. It is voluntary. However, as it is a fairly easy registration (provided you have a manufacturing plant or a commercial space where you render services), many businesses opt for this over other registrations. With decisive guidance by Mibook, one can get SSI registration in India and avail of all the benefits provided under this scheme. We also provide private limited company registration in bangalore as well as accounting and bookkeeping services.

Install our Small Business Accounting App, add your GST bills, and file your GST return filing in Bangalore after receiving your GST registration.

BENEFITS OF SSI REGISTRATION IN BANGALORE WITH MIBOOK

ssi registration in bangalore

One per cent rate exemption on Overdraft

Collateral free loans from banks with a two per cent concession on interest rate

Reimbursement of ISO certificate expenses

Preference in procuring Government Tenders

Ease of availing various other business registrations

15% Credit Linked Capital Subsidy Scheme on fully automatic machinery

Eligible for Industrial Promotion Subsidy

Exempted in stamp duty payment

Electricity duty exemption for 15 years

50% subsidy for patent registration

Eligible for capital subsidy

DOCUMENTS REQUIRED BY MIBOOK FOR SSI REGISTRATION IN BANGALORE

ssi registration in bangalore

Aadhar Card

A Copy of the proprietor’s Aadhar card or director(s) or partner(s) in other cases like

Udhyog Aadhar Registration

PAN card

A copy of the PAN card of the business entity and the director or partner, if applicable

PROCESS AT MIBOOK FOR MSME/SSI REGISTRATION

Day 1

1. Collection
2. Discussion and consultation for the requirement
3. Collecting the required documents

Day 2

1. Preparation and submission
2. Preparation and verification of Application
3. Registering the application with the Ministry of MSME
4. Certificate of registration under MSME

CONCEPT OF MICRO, SMALL & MEDIUM ENTERPRISE REGISTRATION IN BANGALORE

The MSMED Act was enacted by the Government of India in the year 2006 with the vision to aid the Micro, Small, and Medium Enterprises with some financial benefits as they are the backbone of the Indian economy. SSI registration in Bangalore has terms and conditions depending on the type of enterprise, which is Micro, Small, and Medium.

A Microenterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakhs, for microservice less than Rs. 10 lakhs
A small enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakhs, for microservice less than Rs. 10 lakhs.
A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crores but does not exceed Rs.10 crores, for medium service between Rs 2 crores to Rs. 5 crores.

As per the MSMED Act, it is not mandatory to do SSI registration in Bangalore but doing so unlocks lots of perks for your business.
The manufacturing and service sector’s Micro, Small and Medium enterprises have an opportunity to acquire SSI registration in Bangalore. It comes with the benefits of lower rates of interest, excise exemption schemes, tax subsidies, power tariff subsidies, capital investment subsidies, and other support. Mibook caters to all your needs for SSI Registration in Bangalore.

LOAN FROM BANK AFTER SSI REGISTRATION IN BANGALORE

Bank loans are a crucial part of any business growth but it involves too much effort to avail loans from banks. But due to SSI registration in Bangalore, for Micro, Small, and Medium Enterprises it has become more convenient to avail the bank loan as banks prefer MSMEs over normal enterprises to lend loans. Also, the SSI-registered Enterprises in Bangalore are recognized by all financial institutions and banks, significant schemes are also drafted for these enterprises. As mentioned above, the bank interest rates are also lower and the proprietors of such enterprises get preferential treatment in case of delay in repayment of the loan.

ssi registration in bangalore

VALIDITY OF SSI REGISTRATION CERTIFICATE IN BANGALORE

The SSI certificate comes with 5 years of validity. The certificate is quoted as Provisional Registration Certificate (PRC). Even if an enterprise registered is not operational still one must re-apply it. Once the business is started one can apply for a Permanent PR certificate.

HIGHLIGHTS OF SSI REGISTRATION IN BANGALORE

ssi registration in bangalore

The Registration is voluntary and not mandatory.

DIC is the primary registering centre

The SSI registration certificate is valid for 5 years and a permanent certificate is given in perpetuity.

2 types of SSI registration are done in all states. First, a provisional registration certificate is issued. And after the beginning of production, a permanent SSI registration certificate is issued.

TYPES OF SSI REGISTRATION CERTIFICATE

Provisional Registration Certificate (PRC)

1. This certificate can be acquired with the help of Mibook before the business is operative just after SSI registration in Bangalore, the certificate allows units to obtain term loans and working capital from financial institutions/banks under priority sector lending.
2. Helps in obtaining several mandatory NOCs and clearances from regulatory bodies such as Pollution Control Board, Labour Regulations, etc.
3. Also enables SSI Enterprises to obtain facilities for accommodation, land, other approvals, etc.

Permanent Registration Certificate

This certificate also can be availed through Mibook which allows the SSI registered enterprises in Bangalore to gain below inducements / privileges:

1. Availability of raw materials depends on the existing policy.
2. Permanent registration of tiny units should be renewed after 5 years.
3. Income-Tax exemption and Sales Tax exemption as per State Govt. Policy.
4. Price and purchase preference for goods produced.
5. Incentives and concessions in power tariffs etc.

Comparision

ssi registration in bangalore

Learn more according to needs

Frequently Asked Questions

SSI/MSME registration can be applied by manufacturers of goods or products and service providers. Enterprises must meet the eligibility criteria for registration which is different for SSI units in manufacturing and SSI units in service providers.
The manufacturing enterprise must meet the following criteria:
-If it’s a Micro-Enterprise then Investment of up to Rs.25 lakhs in plant and machinery.
-If it’s a Small Enterprise then Investment of up to Rs.5 crores in plant and machinery.
-If it’s a Medium Enterprise then Investment of up to Rs.10 crores in plant and machinery.

Service providers must meet the following criteria:
-For micro Enterprises investment of up to Rs.10 lakhs in equipment
-For Small Enterprises investment of up to Rs.2 crores in equipment
-For Medium Enterprises investment of up to Rs.5 crores in equipment

The SSI certificate comes with 5 years of validity. The certificate is quoted as Provisional Registration Certificate (PRC). PRC is valid only for the pre-operative period of the unit. This means, as soon as the unit commences commercial production the provisional registration certificate loses its validity. PRC will automatically lapse at the end of 5 years from the date of issue of the certificate or the date of commencement of production by the unit, whichever is earlier.

Even if an enterprise registered is not operational still one must apply for it. Once the business is operative one can apply for a Permanent (PR) certificate.

No, it is not at all mandatory for SSI entrepreneurs to register their firm, it is totally the owner’s voluntary decision to register an SSI firm.
However, there are several perks that open up for SSI firms that are registered such as the reduced rate for bank loan interest, easy to avail credit facility, convenience to take government tenders, concessions and rebates on the cost of taking patents, govt. certificate and licence can be acquired easily and incentives from the state govt.

The primary use of SSI registration is that it helps to keep the statistics of the business on track by providing incentives and support services.

SSI units get registered with an objective to avail advantages in form of incentives and support from Central or State govt.

The SSI firm registration provides the data of SSI units operation all over India. The registration aims to create nodal centres at the Centre, state and District levels to promote SSI.
Apart from the above objectives, SSI registration is also done with an objective to avail benefits offered by the government which are credit prescription (Priority sector lending), differential rates of interest etc., excise Exemption Scheme, exemption under Direct Tax Laws, statutory support such as reservation and the Interest on Delayed Payments Act.

SSI registration in Bangalore can be done fully online, paperless and based on self-declaration via this Govt. Portal. The procedure for SSI registration is different in different states but there are some common steps that you need to follow.

For online registration, no documents or proof need to be uploaded, only an Aadhaar Number will be enough for registration. PAN & GST linked details on investment and turnover of enterprises will be taken automatically from Government databases

Once the process is completed the permanent registration number will be given and a certificate for the same will be issued online.

As such, there is no major difference between the MSME and SSI registration. The MSME means micro, small and medium Enterprises and SSI means Small scale industries.

The only slight difference between SSI and MSME is that SSI involves manufacturing houses, production houses and service providers on a small scale.

Whereas MSME covers extensive categories of enterprises such as Micro enterprises, Small enterprises and Medium enterprises.
Previously MSME registration was known as SSI registration only.