What is SSI Registration?

SSI Registration 

SSI stands for Small Scale Industries. Registering an organisation as an SSI will entitle the organisation to various benefits. A brief account of SSI registration, procedures and benefits are given below

Benefits of Registering:

Even though there is no statutory basis for SSI registration, organisations would normally get registered to avail some benefits, incentives or support given either by the Central or State Government. Some of the incentives are as follows:

  • Credit prescription (Priority sector lending), differential rates of interest
  • Excise Exemption Scheme
  • Direct Tax exemption
  • Statutory support

Banking Laws, Excise Law and the Direct Taxes Law have incorporated the word SSI in their exemption notifications. Though in many cases they may define it differently, generally the registration certificate issued by the registering authority is seen as proof of being registered as an SSI

States/Union Territories have their own set of facilities and incentives for small scale industries. They relate to development of industrial estates, tax subsidies, power tariff subsidies, capital investment subsidies and other support. Both the Centre and the State Governments, whether under law or otherwise, target their incentives and support packages generally to organisations registered with them.

Objectives of Registration under the SSI scheme:

  • To have track of small scale industries to which the incentives and support can be targeted.
  • To provide a certificate enabling the organisations to avail statutory benefits and protection.
  • To enable collection of statistics.
  • To create nodal centres at various levels to promote SSI.

Features of SSI Scheme:

  • District Industries Centre is the primary registering authority
  • Registration is voluntary and not mandatory
  • There are two types of registrations. Initially, a provisional registration certificate is issued and after commencement of  production, a permanent registration certificate is issued
  • The provisional registration certificate is valid for a period of 5 years and permanent registration is given in perpetuity.

The permanent registration certificate entitles the organisation to the following benefits:

  • Income-Tax exemption and Sales Tax exemption as per State Govt. Policy.
  • Incentives and concessions in power tariff etc.
  • Price and purchase preference for goods produced.
  • Availability of raw material depending on existing policy.
  • Permanent registration of tiny units should be renewed after 5 years.

Registration Procedure:

  • An organisation can apply for provisional registration certificate for any item that does not require an industrial license.
  • On receipt of application, a provisional registration certificate is issued without any further field enquiry
  • Once the organisation commences production, it will be required to apply for permanent registration in the prescribed form.

The following factors are considered while issuing the permanent registration certificate

  • The organisation has obtained all necessary clearances whether statutory or administrative.
  • The organisation does not violate any location-specific restrictions in force, at the time of evaluation.
  • Value of plant and machinery is within the prescribed limits.
  • Organisation is not owned, controlled or subsidiary of any other industrial undertaking as per notification.

De-Registration:

A Small Scale Organisation’s registration can be revoked if the following conditions are violated

  • Investment limits are crossed.
  • Manufacturing of a new item or items that require an industrial license or other kind of statutory license.
  • It violates the condition of being owned, controlled or being a subsidiary of any other industrial undertaking.

Cogzidel can help you in getting your SSI registered.. For any assistance in SSI registration please contact us at info@cogzidel.in

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