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...
As we all are aware of India’s transformation, the youth is moving towards Start-ups. As a result, the Government of India is introducing good schemes to foster the growth of MSMEs in India. Some people are confused about NSIC and MSME. In this article, we will discuss the difference between NSIC and MSME.
NSIC, an authorized enterprise operated under MSME, helps all the MSMEs for their growth and development. NSIC acts as a promoter that aids all MSMEs in respect of marketing schemes, technological development, financial support, etc.
To know more about the difference between NSIC and MSME, let’s proceed further,
Difference between NSIC and MSME
NSIC (National Small Industries Corporation) is the ISO certified enterprise of the Government of India under Micro, Small and Medium Enterprises. NSIC is created in 1955 to support and promote the Indian MSMEs. NSIC operates through various technical centers and offices around the country. It has a total of 128 branches so that applicants can submit all their documents for the verification of the application.
The Mission of NSIC is to aid and promote Indian MSMEs by providing them technological, marketing, financing, and other allied services.
And, The Vision of NSIC is to become the leading organization that fosters the growth of all Indian MSMEs.
According to the provision of MSMED (Micro, Small and Medium Enterprise Development) Act, 2006, MSMEs (Micro, Small and Medium Enterprises) are classified according to their investments contribution in service and manufacturing sectors respectively. The classification is as follows:
For investment in the Manufacturing sector:-
- Micro-Enterprise- Less than Rs.25 lakhs.
- Small-Enterprise- More than Rs.25 lakhs but less than Rs.5 crores.
- Medium-Enterprises- More than Rs.5 Crores but less than Rs.10 crores.
For investment in the Service sector:-
- Micro-Enterprise- Less than Rs.10 lakhs.
- Small-Enterprise- More than Rs.10 lakhs but less than Rs.2 crores.
- Medium-Enterprises- More than Rs.2 Crores but less than Rs.5 crores.
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The difference in the benefits of NSIC and MSME
Benefits for NSIC
· Marketing benefits
- NSIC registered companies can participate in International Fairs organized by NSIC in other countries.
- Companies registered under NSIC can also participate in exhibitions, business fairs, and trade fairs organized in India.
- These companies can also participate in Tech-mart Exhibitions organized by NSIC.
- NSIC companies are also allowed to participate in Buyers-sellers meet with other industries and government associations as well.
· Financial support
- NSIC registered companies can get government assistance in procuring raw materials from government agencies and National& International sellers.
- These companies can also get assistance from financial institutions and banks in availing credit facilities.
· Technology Support
- NSIC companies can also get help from government accredited laborites for testing.
- They can also get support from the government for new technologies and innovation.
- They are also eligible to get training on skills development.
- They also get government assistance in computer-aided product designing.
Benefits for MSMEs
· Financial Aid
MSME registered companies can easily take loans from banks. Under the Credit Guarantee Fund Scheme of Government of India, all the micro and small enterprises can get collateral-free loans from banks and financial institutions.
· Government tenders preference
Companies registered as MSME can get preference in procuring tenders of the Government of India. MSMEs with innovative techniques can also get choices in these tenders.
· Tax benefits
MSME registered companies can enjoy primary year tax benefits according to the nature of their business. MSMEs can also get Octroi refunds and Stamp Duty benefits.
· Exemption from Excise
MSMEs can gain an advantage over excise duty in their initial year depending on the nature of their business prescribed under Government schemes.
· Electricity Bill concession
Companies registered as MSME are also eligible to enjoy concessions on their electricity bills. Companies need to make an application to the Electricity Department along with their MSME Certificate.
· Protection against delayed payment
All MSMEs are protected against delayed payments from their buyers. The government gives a right to MSMEs to charge a rate of interest on late payment.
· Subsidy on registration of patents
MSMEs can get a 50% subsidy on their patent certification by making an application to the concerned department with MSME Certificate.
· Growth Opportunities
The government is supporting MSMEs in all ways to expand their business on national and international. And, MSMEs are also eligible for IPS (Industrial Promotion Scheme).
· Exemption on overdraft interest rate
MSMEs can get a 1% exemption on the interest rates of bank overdrafts.
The difference in the documents required for NSIC and MSME
Documents needed for NSIC
- Identity proof of owners (Aadhar card, Voter ID and Driving License)
- PAN card of Directors
- Incorporation Certificate of the Company
- Address proof the registered Office (Possession Letter and Lease Agreement)
- Utility Bill, in case of owned land
- Rent Agreement and NOC from Landlord, if applicable
- Article of Association
- Memorandum of Association
- Description of Product and service for the proposed NSIC registration
- Banker’s Statement to specify the financial position of the Company as per Application Form Performa (F)
- Measures for Quality Control Standard testing installed in the Company
- Past three years statement of Operations, sealed by CA.
- Financial Statements (Profit& Loss A/C, Balance Sheet, and Trading A/C) of the Company signed by an authorized person.
- Copy of MSME Certificate
- Declaration regarding dissociation with large companies.
- Receipt of equipped Plant and machinery.
- Copy of BIS license, if any.
- Description regarding Human Resource in the Company
- Certificate of ISO 9000, optional
Documents Required for MSME
- Address proof of the registered office.
- Copy of sales and purchase bills
- MOA/Partnership Deed
- Receipts of equipped Plant and Machinery
- Copy of the Industrial License
- NICC (National Industrial Classification Code)
- Canceled Cheque
- Identity and address proof of directors
The difference in the procedure of NSIC and MSME
Process of NSIC
1. Apply Online
The first step for register your Company under NSIC is to register online under SPRS and upload all the required documents. The documents should be clear and original because any discrepancy will lead to rejection.
2. Filling details
Under the next step, the applicant needs to fill details of the following:
- PAN number of the Company
- Name of the Organization
- Nature of business
- Udhyog Aadhar number
- GST number
- Contact details
- Selection of Inspecting Agency
- Preference regarding NSIC branch
- Description of major category products which requires NSIC registration
3. Details of the Branch
After filling all the details, the applicant will receive an mail on their registered e-mail id of the selected NSIC branch. All the details regarding branch name, address, timings, contact number, etc. will be mailed to the applicant.
4. Securitization of Documents
In this step, the applicant has to visit the branch for verification of documents. The applicant needs to show original documents to the authorized person if demanded.
5. Granting Certificate
After all the verification by NSIC authorized person and Inspection agency, the authority will issue the NSIC certificate to the Company.
Procedure of MSME
- To register the organization as MSME, the entrepreneur has to fill the 12 digits Udhyog Aadhar Number.
- In the next window, the applicant has to fill the name of the directors and click on “Validate and Generate OTP” to validate their Aadhar.
- Then, the applicant has to make gender selection and status of physically handicapped.
- In the next step, the applicant has to fill the following details:
- Name of the Organization
- Type of Organization
- PAN card details in case of PVT LTD or LLP or partnership or Cooperative
- Plant locations or Business operations unit
- Registered Company Address (State, district and PIN code)
- Date of commencement of business operations
- Bank details of the current account
- The major category of the organization
- Number of Employees in the organization
- The worth of plant and machinery employed
- Location of DIC (District Industries Center)
- After filling all the required details, the applicant can make the final submission of his application online by entering the second time generated OTP and Re-Captcha.
So, to register your Company under NSIC and to avail all its benefits, one should register their Company as MSME. Whether you are registering as MSME or NSIC, you can enjoy various government schemes and profits for your business.
Therefore, the registration process of MSME registration is quite straightforward than NSIC. NSIC registration is quite tricky due to its verification and inspection by different government authorized agencies. So, hire professionals for your NSIC and MSME registration and grow your business with all government support.