What is the Procedure of NSIC Certificate Renewal in India?
The government often forms several schemes for the advancement of Micro, Small and Medium Enterprises (MSMEs). One such support undertaking of government is National Small Industries Corporation or NSIC. It is a Mini Ratna PSU that has a predominant objective to promote the products and services of MSME businesses. NSIC fosters the growth of small and medium enterprises by providing an array of schemes. Some of the schemes which NSIC renders to the MSMEs include Performance and Credit rating Scheme, Raw Material Assistance, Single Point Registration, etc. Besides, the MSMEs need to obtain NSIC certificate and get registered to avail the additional benefits under NSIC.
Role of NSIC in the progress of MSME
National Small Industries Corporation plays a vital part in the enlargement of MSMEs. Let’s look upon the perks of attaining an NSIC certificate:
- A registered MSME has the authority to broaden its domain and export products in global markets.
- Under Hire Purchase Scheme of NSIC, the small and medium enterprises employ imported machinery at affordable rates.
- Moreover, NSIC facilitates MSMEs to take equipment on lease basis and participate in the bulk purchase seminars of the government.
- NSIC circulate the basic raw materials to numerous micro, small and medium scale industries through raw material depots.
- NSIC provides technology-driven solutions to enforce modern and innovative techniques in the operations of MSMEs.
- With NSIC certificate, MSMEs follows standard prototypes of various equipment and machine to upgrade their commercial production.
- The National Small Industries Corporation also provides training to small firms in a wide range of industrial trades and empowers the construction of industrial estates.
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Who is eligible to obtain NSIC Certificate?
NSIC registration is a prolonged process that regulates under strict conditions. Here are the eligible candidates who can apply for the certificate of NSIC:
- All the medium and small scale enterprises who functions in the manufacturing industry can easily qualify the NSIC registration process. Whereas, the traders of any company are ineligible.
- The registered enterprises/industries with the District Industries Centre or Director of Industries are eligible to register under the scheme of Single Point Registration.
- The provisional registration certificate is issued to that MSME, which hasn’t completed one year of its business operation under Single Point Registration. The certificate grants a monetary limit of Rs.5 Lakhs with a validity of 1 year.
Documentation is a crucial step in NSIC registration, so attach these documents along with your NSIC certificate application:
- Performance Statement
- A self-attested copy of lease deed or ownership proof of the premise
- Acknowledgement copy of MSME registration
- Comprehensive details about the plant & machinery and raw material with the original purchase price
- List entailing all the finished goods and raw materials in stock
- Certificate/Declaration from the Partner/ Proprietor/Director, which acts as an evidence to their tie-up with the large scale unit(s).
- A copy of BIS license and ISO 9000 (if applicable)
- Details of the quality control and testing equipment
- An audited balance sheet and financial statements like Profit & Loss or Trading Account
- Copy of PAN (Permanent Account No.)
- Affix the Certificate of Incorporation
- In case of LLP, provide partnership deed
- Specify the goods and items for which you need NSIC registration
- Elaborated information about your quality control measures to ensure the standard quality of raw material.
- A copy of your product’s test reports from certified labs
- Utility or electricity bill copy
- Bank statement of last 3 years duly signed by a CA which displays your company’s operations.
- Names and other details of the technical staff employed in services and production
- Bankers’ Report that showcases the financial status of your firm as per Performa “F” of the application.
- Form ’A’ from Registrar of Firms comprising the names of your company’s partners.
Step by Step Process to procure NSIC Certificate
NSIC applicant can enroll for the certificate either online or offline. The prerequisite before NSIC certificate is to have Udyog Aadhar Registration. Follow the steps for both online and offline procedure individually:
The online registration is a much easier and convenient method to register under NSIC. Here is what an applicant has to do:
- Visit the official portal of NSIC at www.nsic.co.in.
- Click on the icon of ‘online registration for GP’
- It will require you to fill all the login credentials.
- Fill up the form and submit the documents along with the prescribed fee.
- Subsequently, the inspection officer will validate the documents and if there is no fallacy, he will issue the NSIC registration certificate.
- First download a duplicate form of NSIC registration and fill all the required details.
- Submit your application with the documents and pay fee to the concerned NSIC Zonal/Branch or Sub/Extension office.
- The branch office will further send your application to the Regional Inspecting Officer accompanied with imperative Draft/ Proofs/Pay Order. At this point you need to deposit investigation charges for technical inspection.
- If you meet all the requirements, the authority will issue the GP Registration Certificate.
A synopsis of the Fee Structure
NSIC registration charges vary on the basis of business turnover under the latest audited financial statements. The fee structure is segregated into three forms:
- MSME with less than Rs.1 Crore Business Turnover: A micro-enterprise with less than Rs.1 crore turnover has to pay Rs.3000 whereas, for the small enterprises that have a turnover of less than Rs.1 crore are required to deposit fee of Rs.5000.
- More than Rs.1 Crore Turnover:Micro firms that have more than Rs.1 crore turnover are charged Rs.3000 plus Rs.1500 for each crore additional turnover. However, the small enterprises with more than 1 Crore turnover must pay a fee of Rs.5000 plus Rs.2000 for each crore of added turnover. The total cap registration fee is Rs.1 lakh.
NSIC Inspection Charges
Micro, Small and Medium Enterprises need to deposit the Inspection fee in addition to the Registration charges. The Inspecting costs for micro and small enterprises are Rs.2000 and Rs.3000 respectively.
All the NSIC applicants must pay the Professional fee to RITES Limited and Consultancy Development Centre to undertake the physical inspection. The Professional fee for micro-enterprises is Rs.6000 while for small enterprises, it is Rs.8000.
How to renew the NSIC Certificate?
The certificate of NSIC registration has the validity of 2 years under the revised provision of Single Point Registration Scheme, 2003. Therefore, one must review and renew the certificate after 2 years. For this purpose, a licensee has to re-verify Commercial and Technical Competence of his registered MSME in producing or manufacturing the stores that have been registered by NSIC.
National Small Industries Corporation is a boon for all the micro, small, and medium scale enterprises. It is extremely beneficial to procure NSIC registration certificate for MSMEs.
If you need legal assistance during the process of NSIC registrations, contact Swarit Advisors. We have a dedicated team of Lawyers and Chartered Accountants to simplify the procedure.