Procedure, Fees and definition of NSIC Registration
NSIC refers to National Small Industries Corporation, which is a Mini Ratna PSU founded by the Government of India in 1955. It comes under (MSME) Ministry of Micro, Small & Medium Enterprises. NSIC diligently works on promoting the growth of MSME businesses in India by running various schemes like Raw Material Assistance, Performance and Credit Rating Scheme, Marketing Support, and Single Point Registration for Government Purchase. This article will avail you with a complete guide for obtaining NSIC Registration covering all the aspects from procedure to eligibility and charges.
Functions of National Small Industries Corporation Ltd.
Apart from aiding, promoting and fostering small-scale industries through numerous schemes, the NSIC provides a wide range of other services, let’s have a look at them:
- NSIC supply imported and indigenous machinery on affordable financial terms to small-scale industries through the hire-purchase scheme.
- It also helps small scale businesses in exporting their products across big markets.
- Such enterprises build a prototype of different machines and equipment to facilitate small-scale industries for commercial production.
- NSIC distributes the basic raw material to many small-scale industries via raw material depots.
- The National Small Industries Corporation renders equipment leasing facility and takes part in bulk purchase program of the Government.
- NSIC implements modernization programs to upgrade the technology of small-scale industries.
- It Imparts training to small-scale businesses in varied industrial trades and undertakes the construction of industrial estates.
Benefits of NSIC Registration for MSME
MSME can leverage an array of benefits through NSIC registration in terms of marketing, credit, and technical support. Following list entails the advantages which micro, small, and medium enterprises get from NSIC:
- By participating in international fairs conducted by NSIC, MSMEs obtain different subsidies. The maximum subsidy for Micro-enterprises is Rs.2.25 lacs, while for small and medium enterprises, the subsidy is Rs2 lacs and Rs.1.50 lacs respectively, inclusive of freight charges and space rent.
- The registered MSMEs can even participate in the Techmart exhibitions, which introduce them with best products, services and advanced technologies. The subsidy for regular Micro, Small and Medium Enterprises in trade fairs of India is 75%, 60%, and 25%, respectively.
- Individuals running MSMEs also get a chance to take part in Buyer-Seller meet with Government or other associations.
- The MSMEs acquire assistance from numerous financial institutions in regards to credit facilities for their business plans.
- Another benefit of NSIC registration for MSMEs is that they procure help in testing their items in Government-accredited laboratories.
- NSIC registered MSMEs enhances their skills by taking skills development training.
- The Government assist all the NSIC registered small scale companies in computer-aided product designing.
- Moreover, they get the right to procure raw materials from national and international sellers as well as from other Government agencies.
Eligibility Criteria for NSIC
As the registration process of NSIC is quite complex, so the companies ought to resonate with its prescribed conditions that are:
- The enterprise or industries, which got registered with the Director of Industries/ District Industries Centre, are only eligible to register under Single Point Registration Scheme of NSIC.
- MSMEs that have commenced their business operation, but yet to complete a 1-year duration. A provisional regional certificate gets issued to such MSMEs with a limit of Rs.5 lakhs and with a validity of 1 year.
Document Required for NSIC registration
One needs to have the following documents for obtaining NSIC registration in India:
- Identity proof of owners/directors
- A copy of PAN card
- Certificate of Incorporation
- Registered company address proof such as lease agreement, Rent agreement, Property papers, etc.
- Memorandum of Association and Article of Association.
- Utility bill and last three years financial reports of the company in the form of Profit& Loss Account, Balance Sheet, and Trading Account signed and sealed by an authorized person.
- Name of the services and products for which you require NSIC registration.
- Provide a copy of the document showcasing quality control measures with the name of equipment which the company used for testing quality control standards.
- Last three years statement of operations signed and sealed by a CA.
- A copy of MSME Certificate
- The bank statement of the owner, which specifies the financial position of his company as per application form Performa (F).
- A list and receipt of the company’s plant and machinery purchased.
- Give details of finished goods in stock and raw materials.
- Declaration or Certificate by owners/directors, stating that they aren’t associated with any large industries.
- A copy of BIS License (optional.)
- Give a list of your company’s employees working in several fields and producing distinct services.
- Certificate of ISO 9000, if any.
Procedure for NSIC Registration
It is indispensable for MSMEs to have their Udyog Adhar Registration before applying for NSIC registration. There are two ways of registering under NSIC, i.e., online and offline. Here is the synopsis of both the process:
- First, go to the official website of NSIC, i.e., https://www.nsic.co.in/
- Now, click on the tap of ‘online registration for GP’
- After that, fill the required credentials, then save and proceed.
- Make a payment of the required fee
- And finally, press the submit button.
- Download a copy of NSIC registration form
- After that, fill in all the required details listed in the form
- All the medium and small scale enterprises must submit NSIC application frame along with the required reports and charges to Branch/Zonal and Extension office/Sub office of NSIC.
- Now, send your form to the concerned Inspecting office by attaching a copy of the required imperative Proofs/Draft/Pay Order of investigation charges.
- After giving the inspection report, the NSIC issues GP Registration Certificate to the MSME for stores/things as required.
Fee Structure for Registration
The total charges for NSIC registration are based on the business turnover as per the latest audited financial statements. Moreover, the NSIC registration charges get split into three types, namely – registration charges, inspection fee, and professional fee. Let’s put a light on all three types individually:
- Registration Fee: As per new registration based on turnover and MSME classification, the NSIC charges differ like:
- Less than Rs.1 Crore Turnover: The Micro-enterprises having a turnover of less than Rs.1 crore get charged a fee of Rs.3000, whereas small enterprises with less than Rs.1 crore turnover get charged a fee of Rs.5000.
- More than Rs.1 Crore Turnover: The Micro-enterprises which have a turnover of more than Rs.1 crore, get charged a fee of Rs.3000 plus an additional fee of Rs.1500 for each crore of added turnover. Besides, the small enterprises with less than Rs.1 crore turnover get charged an amount of Rs.5000 plus an additional fee of Rs.2000 for each crore of added turnover. The audited financial statement set Rs.1 lakh as the total cap registration fee.
- Inspection Charges: MSMEs must pay for inspection charges in addition to the registration fee. The inspecting agency set Rs.2000 for Micro-enterprises and Rs.3000 for small enterprises.
- Professional Fee: Lastly, the MSME must pay a professional fee to Consultancy Development Centre and RITES Limited and for undertaking the physical inspection. The Professional fee got fixed at Rs.6000 for Micro-enterprises and Rs.8000 for small enterprises.