Category: Tapi

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Small Scale Industry Registration (SSI Unit)

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Small Scale Industry Registration is most important for those who are manufacturers or Exporters to avail Government Benefits for their SSI Unit.

Benefits of Registering

The registration scheme has no statutory basis. Units would normally get registered to avail some benefits, incentives or support given either by the Central or State Govt. The regime of incentives offered by the Centre generally contains the following:

 – Credit prescription (Priority sector lending), differential rates of interest etc.
 – Excise Exemption Scheme
 – Exemption under Direct Tax Laws.
 – Statutory support such as reservation and the Interest on Delayed Payments Act.

(It is to be noted that the 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. However, generally the registration certificate issued by the registering authority is seen as proof of being SSI).

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

SSI Registration in Gujarat | SSI Registration in Ahmedabad | MSME Registration in Gujarat | MSME Registration in Ahmedabad

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Registration of Small Scale Industrial Units

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The Scheme of voluntary registration of Small Scale, Village and Cottage Industries with the State Directorate of Industries was introduced in 1960 and such registered industrial units were made eligible for different types of assistances by the Governmental Agencies. Initially a uniform norm for registration were not laid down with the result that some of the States had granted different registration numbers to different lines of manufacturing processes to the same unit thereby resulting in multiple registration.  

Therefore to avoid such anomalies a uniform set of Application Forms for both Provisional as well as Permanent Registration were evolved out at the time of introduction of the revised procedure of registration of these sectors of industrial undertakings in 1975. With the passage of time, the Government of India, Ministry of Commerce and Industries further simplified the procedures by simplification of the forms for registration and also introduced the coded system to indicate the State, Districts and the unit’s serial number so as to facilitate computerisation of the whole system of SSI registration, in 1989.  

Registration of Small Scale, Village and Cottage industries are done under two stages, viz-  

  1. Provisional and
  2. Permanent Registration

Provisional Registration : Provisional registration is granted to a unit at its pre- investment period to enable it to take necessary steps to apply for financial credit, land or an industrial set, water, power or telephone connections, etc.  

Permanent / Final Registration : A provisionally registered industrial unit when it is about to go into production is to apply for grant of Permanent / Final Registration. An existing and functioning industrial unit is eligible to apply for Permanent / Final Registration without going into provisional registration processes.  

SSI Registration | SSI Registration in Gujarat | SSI registration in Ahmedabad