Small scale industries (SSI)/MSME registration FAQs – Part 1

by varun · Published November 5, 2020 · Updated December 24, 2021

MSME or SSI sector is the backbone of a developing economy like India. As per MSME.gov.in the MSME sector contributes to 45% of India’s Total Industrial Employment, 50% of India’s Total Exports and 95% of all industrial units of the country and more than 6000 types of products are manufactured in these industries. In this article we would answer FAQs related to MSME/SSI registration in India –

Q – What are the benefits of registering SSI units?

A – Registered SSI units get multiple benefits which includes-

Easy subscription to priority sector lending at attractive interest rates. PSL lending is one of the main objectives as well as mandatory requirement for public sector banks. Registration would help in getting this funding as it act as a proof that firm belongs to SSI category.
SSI registered units can also avail benefits like Excise exemption scheme.
Exemption is also provided under direct tax laws.
Support from the legal machinery in case of conflicts like delayed payments from corporates.

Q – What are the objectives of SSI registration?

A – SSI registration has many objectives which includes-

To maintain a record of small scale industries for incentives and support.
To promote awareness about incentives and support provided by government for small scale industries.

Q – Is SSI registration mandatory under law?

A – No, registration is not mandatory under law. However, as seen earlier registration has multiple benefits for a firm. registration fees is also minimal, It is advisable to register for this registration or Udyam registration.

Q – What is provisional registration certificate (PRC) under SSI?

A – Provisional registration certificate is provided to SSI in pre operative period which includes many many features such as-

Provisional registration certificate SSI enables firms to avail term loan facilities from public sector banks under priority sector lending.
It helps in obtaining facilities for accommodation, land and other facilities.
It acts as a valid proof for getting various NOCs( No objection certificate) from various government bodies including pollution control board, labor regulators etc.

Q – What is permanent registration certificate (PRC) under SSI?

A – Permanent registration certificate as the name suggests is a permanent registration under SSI scheme. It entails many features which includes-

Income tax exemption as per eligibility.
Power tariff concessions in various states.
Government mandates ministry to purchase certain goods and avail certain services only through SSI. A permanent registration certificate (PRC) would help in getting in that benefit.

Q – What is the validity of permanent registration certificate (PRC) under this registration?

A – PRC is valid up to 5 years and it is advisable to apply for renewal before expiry date.

In this article, we have discussed various FAQs related to SSI registration like SSI registration fees, SSI registration validity, SSI registration benefits. We would continue to publish more articles on SSI/MSME registration in future too. You can read articles on Shop and establishment act FAQs, Import and export code FAQs, Udyog Aadhar registration FAQs by clicking respective links.