SSI Registration Eligibility and Benefits

Many may have the doubt on SSI registration while starting a new business. Most of the people don’t even know about SSI registration. That SSI registration is a certification from the Ministry of Micro, Small, and Medium Enterprises. If you get the SSI registration means you will be capable of attaining many schemes and allowance that are provided by the Government of India. Here we are yet to discuss how to register SSI certificate.

SSI Registration

One can apply for the SSI registration if the business comes under micro, small, and medium enterprises. This kind of  SSI registered enterprises ensure the economical development impartially. To be capable for any benefits under MSMED Act 2006, from the Central and State Government even banks, this SSI registration is an essential one. As we discussed above, to help and promote SSI enterprises, Indian Government has provided many schemes, subsidies and incentives via MSMED Act. You can apply for the SSI certificate, to any Micro, Small, Medium scale businesses in both manufacturing and service sector. Though it is not compulsory, it offers so many facilities to improve the small scale industries. The benefits such as getting lower interest rates, excise exemption scheme, tax subsidies, power tariff subsidies, capital investment allowances and other services.

The main aim of this SSI registration is to maintain the statistics and a roll of SSI enterprises in India in order to supply incentives and other helpful services. Every State Government followed same registration procedures to get SSI Certificate. But some process may change in the States. Some may follow “SIDO Registration Scheme” and a “State Registration Scheme”.

Types of SSI/MSME Registration

There are two varieties of registrations are given by the Government.

  1. Provisional registration- It is valid for 5 years, only for the preoperative period.
  2. Permanent registration- If your commencements are begun and actively proceeding means the registration will be perpetual.

Note: Also Udyog Aadhar also available for an applicant who is not yet getting Aadhar enrollment.

Normally MSMED Act determined 3 slabs to define trades.

msme three slabes


You can apply for SSI registration for both manufacturing industries and service rendering businesses [investment upto INR 200Crores] such as Pet shop, Computer repair, so on. Within a year of the existence if the enterprise has started its production means they can apply for the SSI registration. First the Provisional Registration will be provided to the Micro and Small Enterprises under the Single Point Registration scheme along with monetary limit, lowest amount of money to be invested of 5 lakes that will be valid for one year. That only taken from the date of paying the Registration fee and getting the essential certifications.

Each Micro and Small Enterprises that are certified by the Director of Industries [DI] /District Industries Centre [DIC] as manufacturing/service enterprises are having Acknowledgement of Entrepreneurs Memorandum [EM Part-II] is eligible for registration with the NSIC under its Single Point Registration Scheme [SPRS]. The obtaining SSI registration level will change for both manufacturing units and service rendering units.

For Manufacturing enterprises- Investment in plant and machinery [excluding land and building]  levels,

  1. Investment of upto Rs.25 lakhs in plant and machinery – Micro Enterprises
  2. Investment of upto Rs.5 Crore in plant and machinery – Small Enterprises
  3.  Investment of upto Rs.10 Crore in plant and machinery – Medium Enterprises

For Service rendering enterprises- Investment in plant and machinery [excluding land and building]  levels,

  1.  Investment of upto Rs.10 lakhs in plant and machinery – Micro Enterprises
  2.  Investment of upto Rs.2 Crore in plant and machinery – Small Enterprises
  3. Investment of upto Rs.5 Crore in plant and machinery — Small Enterprises

SSI Certificate – Benefits

There are so many advantageous you can get from the Government.

  1. Exemption  under direct tax laws.
  2. Statutory support services like easy finance availability from Banks, there is no guarantee requirement.
  3. Interest In the Delayed Payments Act.
  4. Priority sector lending by banks.
  5. Excise Exemption scheme.
  6. Lower bank interest rate.

Apart from determining benefits from the Central and State Government, Union territories also have announced its own set of services and incentives for SSI Enterprises. Some of the facilities related to tax allowance, power tariff subsidies, capital investment allowance, industrial estate developments and other services. But both Government subsidies targeted to the small businesses which have SSI Registration.

Other benefits

All Micro, Small, and Medium productive enterprises which are situated within the State and originated its commercial productions on or later 22.02.2008 are fit to get below facilities from the same State Government.

For Micro Enterprises – Special allowance schemes

If you started a Micro enterprise at any place in your State means you can get,

  1. First 3 years one can obtain 20% Low Tension Power Tariff [LTPT] Allowance.
  2. On the value of Plant and Machinery get 15% of initial allowance.
  3. Cent percent allowance on the determined VAT for first 6 years.
  4. Exception from paying the payment of stamp duty on mortgaged and pledged documents.

To Micro, Small, and Medium enterprises – Subsidies

If one of the above enterprises started in 251 backward Blocks, Government Industrial Estates and Agro Based set up in every 385 Blocks in the State, means they can obtain following allowances.

  1. On the financial worth of Plant and Machinery you can get 15% of capital subsidy.
  2. If one employing at least 25 workers in an Enterprise means they will be given 5% Additional Employment intensive allowance.
  3. For Women, ST, SC, Transgender Entrepreneurs, Physically Disabled  – 5% Additional subsidy.
  4. If the business helps to clean and have Eco friendly technologies means they have installed 25% Additional Subsidy on the value of Plant and Machinery.
  5. First 3 years one can obtain 20% Low Tension Power Tariff [LTPT] Allowance.

For Thrust Sector Enterprises – Exclusive Capital allowance

Especially  10 Thrust Sector Industries can obtain 15% of Special subsidy on the value of Plant and Machinery such as,

  • Auto parts and components,
  • Electrical and electronics industry,
  • Leather and Leather goods,
  • Gold and Diamond Jewellery for Exports,
  • Drugs and Pharmaceuticals,
  • Sports Goods and Accessories,
  • Ready-made Garments,
  • Cost Effective Building Materials,
  • Also Pollution control equipments,
  • Solar Energy Equipment.

Additional Subsidies

  1. For Technology upgradation or Modernization – 3% Back ended Interest Subsidy.
  2. For Trademark Registration – 50% subsidy on the cost of filing a Patent.
  3. For Enterprises which are started on Industrial Estates / Industrially Backward Areas – 50% concession on Stamp duty and Registration charges that is payable to the Registration Department.


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