REGISTRATION
Micro, small and medium enterprises and Ancillary units should seek registration with the Director of Industries of
the concerned State Government.
Registering Your MSME. Click here to know latest notification
Benefits of Registering
Objectives of the Registering Scheme
Features of the Scheme
Provisional Registration Certificate
Permanent Registration Certificate
Procedure for Registration. Click here to download Format of Entrepreneur's Memorandum
Basis of Evaluation
De-registration
REGISTERING YOUR MSME
The main purpose of Registration is to maintain statistics and maintain a
roll of such units for the purposes of providing incentives and support
services. States have generally adopted the uniform registration
procedures as per the guidelines. However, there may be some modifications
done by States. It must be noted that small industries is basically a
state subject. States use the same registration scheme for implementing
their own policies. It is possible that some states may have a 'SIDO
registration scheme' and a 'State registration scheme'.
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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 MSME 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 MSME).
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.
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OBJECTIVES OF THE REGISTRATION SCHEME
They are summarised as follows: - To enumerate and maintain a roll of
small industries to which the package of incentives and support are
targeted. - To provide a certificate enabling the units to avail statutory
benefits mainly in terms of protection. - To serve the purpose of
collection of statistics. - To create nodal centres at the Centre, State
and District levels to promote MSME.
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FEATURES OF THE SCHEME
Features of the scheme are as
follows:
- DIC is the
primary registering centre
- Registration is voluntary and not
compulsory.
- Two types
of registration is done in all States. First a
provisional registration certificate is given. And
after commencement of production, a permanent
registration certificate is given.
- PRC is
normally valid for 5 years and permanent registration
is given in perpetuity.
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PROVISIONAL REGISTRATION CERTIFICATE (PRC)
- This is
given for the pre-operative period and enables the
units to obtain the term loans and working capital
from financial institutions/banks under priority
sector lending.
- Obtain
facilities for accommodation, land, other approvals
etc.
- Obtain
various necessary NOCs and clearances from regulatory
bodies such as Pollution Control Board, Labour
Regulations etc.
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PERMANENT REGISTRATION CERTIFICATE
Enables the unit to get the
following incentives/concessions:
- Excise
exemptions
- Income-Tax
exemption and Sales Tax exemption as per State Govt.
Policy.
- Incentives
and concessions in power tariff etc.
- Price and
purchase preference for goods produced.
- Availability of raw material depending on
existing policy.
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PROCEDURE FOR REGISTRATION
Features
of the present procedures are as follows:
- A unit can
apply for PRC for any item that does not require
industrial license which means items listed in
Schedule-III and items not listed in Schedule-I or
Schedule-II of the licencing Exemption Notification.
Units employing less than 50/100 workers with/without
power can apply for registration even for those items
included in Schedule-II.
- Unit
applies for PRC in prescribed application form. No
field enquiry is done and PRC is issued.
- PRC is
valid for five years. If the entrepreneur is unable to
set up the unit in this period, he can apply afresh at
the end of five years period.
- Once the
unit commences production, it has to apply for
permanent registration on the prescribed form.
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The following Factors form Basis of Evaluation:
- The unit
has obtained all necessary clearances whether
statutory or administrative. e.g. drug license under
drug control order, NOC from Pollution Control Board,
if required etc.
- Unit does
not violate any locational restrictions in force, at
the time of evaluation.
- Value of
plant and machinery is within prescribed limits.
- Unit is not
owned, controlled or subsidiary of any other
industrial undertaking as per notification.
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