NSIC Registration

COMPLETE PROCESS OF NSIC REGISTRATION
|DOCUMENTS| PROCESS| REQUIREMENTS

INTRODUCTION

The National Small Industries Corporation (“NSIC”) is a government of India organization that is part of the Ministry of Micro, Small, and Medium Enterprises (MSMEs). The National Small Business Innovation Centre (NSIC) encourages and supports the development of small businesses around the country. Professionally controlled training and incubation have been developed by the company.

NSIC offers a variety of comprehensive support programs in the areas of technology, customer service, banking, and marketing. Micro & Small Enterprises (MSEs) are registered with NSIC under the Single Point Registration Scheme (SPRS) in order to participate in government purchases.

For more information, please contact us on info@trijuris.com or call us Mb. No. 85100 58386 or 9310 717274.

WHY WAS NSIC FORMED?

The National Small Scale Industries Council (NSIC) was formed to promote and foster the growth of MSMEs operating in India, as well as to serve as a mediator to assist Small Scale Industries. It offers centralized support services in a variety of areas, including technology, customer service, finance, and marketing. It registers Micro and Small Businesses under the Single Point Registration Scheme so that they can participate in government procurement.

WHAT IS THE DISTINCTION BETWEEN NSIC AND MSME?

The terms MSME and National Small Industries Corporation are often confused. however, significant differences between the two. The Micro, Small, and Medium Enterprises Department, which includes the National Small Industries Corporation and six other departments, is in charge of MSMEs in India.

REGISTRATION PROCEDURE

Enterprises with an MSME or Udyog Aadhaar registration may apply online or in-person at one of the NSIC offices to obtain registration. Following receipt of the application, the NSIC sends it to the nearest zonal, branch, or sub-branch office to complete a technical inspection of the unit and forward a recommendation for NSIC registration. NSIC registers the MSME device after receiving the inspection report.

NSIC registration is available to both manufacturing and service provider businesses that have an MSME or Udyog Aadhaar number.

FEES FOR REGISTRATION

The cumulative charges for NSIC registration are calculated based on the business’s revenue as reported in the most recent audited financial statements. In addition, the NSIC registration fees are divided into three parts: registration fees, inspection fees, and professional fees, as shown below:

For new registrations, the NSIC assesses the following fees based on turnover and MSME classification.

Less than Rs.1 Crore Turnover: Micro businesses with a turnover of less than Rs.1 crore pay a fee of Rs.3000, while small businesses with a turnover of less than Rs.1 crore pay a fee of Rs.5000.

More than Rs.1 Crore Turnover: Micro businesses with a turnover of more than Rs.1 crore are charged a fee of Rs.3000 plus Rs.1500 for each additional crore of turnover. A fee of Rs.5000 is paid to small businesses with a turnover of less than Rs.1 crore, plus Rs.2000 for each crore of additional turnover. The registration fee ceiling has been set at Rs.1 lakh.

FEES FOR INSPECTION

MSME businesses must also pay inspection fees, which are determined by the inspecting body, in addition to the registration fee. Inspection fees for micro and small businesses are set at Rs.2000 and Rs.3000, respectively.

FEES FOR PROFESSIONAL SERVICES

Finally, the MSME unit must pay RITES Limited and Consultancy Development Centre a professional fee for the physical inspection. Professional fees for micro and small businesses are set at Rs.6000 for micro-enterprises and Rs.8000 for small businesses.

WHAT ARE THE QUALIFICATIONS FOR NSIC REGISTRATION?

Before applying for NSIC registration, the applicant must meet these eligibility requirements.

S. No.	Nature of Enterprise	Investment in Plant & Machinery or Equipment (in INR)	Annual Turnover (in INR)
I	Micro Enterprise	Upto 1 Crore	Upto 5 Crore
II	Small Enterprise	More than 1 Crore but upto 10 Crore	More than 5 Crore but upto 50 Crore
III	Medium Enterprise	More than 10 Crore but upto 50 Crore	More than 50 Crore but upto 250 Crore

Holding MSME Certificate.
1 year has passed since the start of the company.

Note: The Provisional Registration Certificate will be granted to MSEs who have not completed one year of business operation under the Single Point Registration scheme.

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WHAT SCHEMES ARE AVAILABLE VIA NSIC REGISTRATION?

NSIC Registration has a number of different schemes, which are as follows: –

A- Single Point Registration Scheme.

The Government is the biggest buyer of a wide range of products, according to the Single Point Registration Scheme. The Government Stores Procurement Program was established in 1955-56 in response to an increase in the share of sales made by small businesses. MSEs, or Micro & Small Enterprises, are registered with NSIC under the Single Point Registration Scheme (SPRS) in order to participate in government procurement.

B- The Performance and Credit Rating Scheme.

It aims to establish independent and trustworthy third-party opinions on MSE capabilities and creditworthiness. This increases the availability of credit at low-interest rates while also increasing efficiency. The Ministry of SSI reimburses a proportion of Rating Agency charges based on MSE turnover under this arrangement.

C- Bill Discounting Scheme.

This Scheme will cover the discounting of bills resulting from legitimate trade transactions, such as deliveries rendered by MSMEs to reputable Public Limited Companies/Private Limited Companies /State and Central Govt. Departments/Undertakings(not traders) engaged in manufacturing/service operations.

D- Bank Credit Facilitation.

NSIC has entered into a Memorandum of Understanding with a number of nationalized and private sector banks in order to meet the credit needs of MSME units. It assists MSME in obtaining credit support (fund-based or non-fund-based limits) from these banks via these banks. NSIC also assists MSMEs in completing the paperwork needed to send proposals to banks. NSIC provides this form of assistance to MSMEs at no cost to them.

E- Raw Material Assistance Scheme.

The Raw Material Assistance Scheme seeks to assist MSMEs by providing funding for the procurement of both indigenous and imported raw materials. MSMEs would be able to concentrate more on producing high-quality goods as a result of this.

F- Procurement and Marketing Assistance Scheme.

Marketing is critical for the growth and survival of micro, small, and medium businesses. Large businesses can afford to employ people and sell their goods and services because they have the financial means to do so. Under the Marketing Assistance Scheme, the Ministry of Micro, Small & Medium Enterprises, in collaboration with NSIC, has been providing marketing assistance to Micro & Small Enterprises (MSEs).

WHAT DOCUMENTS ARE NEEDED TO REGISTER WITH THE NSIC?

The following are the documents needed for NSIC registration:
A copy of the MSME registration acknowledgment
Specifications of plant and equipment, as well as raw materials, along with the initial purchase price
Performance Statement
A self-attested copy of the premises’ ownership records or a copy of the lease deed.
A declaration/certificate from the owner, partner, or director stating whether or not they have any ties to a large-scale unit (s).
Inventory of raw materials and finished products
If necessary, a copy of the BIS license.
ISO 9000 photocopy (Optional).
A list of the technical staff who work in the manufacturing and service departments.
The item for which registration is needed, along with specifications (s)
A report on the firm’s quality management procedures for ensuring the quality of raw materials, purchased items for assembly and sub-assembly, in-process goods/stores, and finished products.
A list of quality control equipment and testing facilities in the factory.
Where appropriate, a copy of a form test report from an independent lab, as specified in the relevant standard.
A copy of the most recent electric bill.
Balance Sheet, Trading Account, and Profit & Loss Account, all audited.
Account for the previous three years, properly signed and sealed by the approved official.
A statement detailing the results of operations for the previous three years, duly signed and sealed by a Chartered Accountant.
According to Performa “F” of the application form, a bankers’ report detailing the applicant firm’s financial situation is needed.
A copy of the Permanent Account Number (PACN) (PAN)
Deed of Partnership
Registrar of Firms Form ‘A’ with the names of the partners.
Incorporation Certificate
Articles of Association and Memorandum

For more information, please contact us on info@trijuris.com or call us Mb. No. 85100 58386 or 9310 717274.

WHAT IS THE PROCESS FOR GETTING AN NSIC CERTIFICATE?

Enterprises that are MSME-registered or have an Udyog Aadhar number are eligible for NSIC registration. A registered MSME with an Udyog Aadhar number may apply for NSIC registration online. MSMEs must fill out an application form and send it along with the necessary documentation to the nearest NSIC zonal or branch office in order to receive the NSIC certificate.

An applicant for an NSIC certificate must complete the following steps: –

Step 1:

To receive an NSIC Certificate, an applicant (MSME) must go to the official website www.nsicspronline.com.

Step 2:

To become a Single Point Registration Applicant, MSMEs must first register in the MSME Data Bank using their UAM number and PAN.

Step 3:

Using your PAN and UAM numbers, fill in the required information on the application form.

Step 4:

The applicant must apply for the completed application form along with all required documentation.

Step 5:

Pay the necessary fee to get your NSIC certificate.

Step 6:

After the payment has been made and validated and the authority has checked. the records, the NSIC certificate will be mailed to you.

WHAT IS THE NSIC REGISTRATION VALIDITY?

The NSIC Certificate issued to MSMEs under Single Point Registration is valid for two years and can be renewed after that time period has passed. You should also keep in mind that the Provisional NSIC certificate issued to MSMEs with a pecuniary cap of INR 5 lakhs is only valid for one year from the date of issue.

RENEWAL OF REGISTRATION

SPRS Certificates are valid for two years from the date of registration, and MSE units may apply for renewal six months before the certificate expires.
MSEs who renew their SPRS certificate before it expires receive a 50% discount on the renewal charge.
MSEs Units that haven’t changed their certificates since they were issued may apply for renewal online.

WHAT ARE THE FUNCTIONS THAT NSIC PERFORMS?

The following are the functions of NSIC: –

NSIC offers a variety of development programs for MSMEs in order to improve their competitiveness.
It offers MSMEs centralized marketing, technology, and financial support services.
MSMEs may also benefit from technological and skill growth.
Allows for the free distribution of tenders to qualifying MSMEs.
Provide small-scale businesses with equipment on a rent-to-own basis.
Provide a leasing option for equipment.
Assist in the export marketing of small-scale industry goods.
Take part in the Government’s bulk procurement scheme.
Create a prototype of machinery and equipment that can be passed on to small-scale manufacturers for commercial production.
. Use raw material depots to distribute essential raw materials to small-scale enterprises.
Assist in the growth and advancement of technology, as well as the introduction of small-scale industry modernization programs.
Provide instruction in a variety of industrial trades.
Turn-key establishment of small-scale enterprises in other developing countries.
Construction of industrial estates should be undertaken.
Financial support for the purchase of raw materials for a period of up to 90 days.
Cost-effective bulk purchases of essential raw materials.
NSIC makes it easier to import rare raw materials.
In the case of imports, NSIC handles all of the processes, paperwork, and letter of credit issues.
Tender sets are distributed free of charge.
DGS&D’s advance notification of tenders.
Earnest money is not needed to be paid.
Waiver of the security deposit up to the amount stated in the unit’s registration.

WHAT ARE THE ADVANTAGES OF REGISTRATION WITH THE NSIC?

The following are some of the advantages of NSIC registration:

1- Allows for the free of cost distribution of tenders

The main advantage of NSIC registration is that it allows for the free distribution of tenders to eligible MSMEs.

2- MSMEs’ Proficiency Is Boosted

It provides a variety of personalized services to help MSMEs in India improve their efficiency.

3- MSMEs are given assistance.

Using a combination of support services, NSIC assists MSMEs in integrating a variety of integrated support systems in marketing, technology, finance, and other areas.

4- Deposits of Earnest Money are not needed.

MSMEs with NSIC registration are exempt from paying EMD (Earnest Money Deposits). The bidder’s EMD is taken to ensure that he is serious about the offer.

5- The Advancement of Small-Scale Industries

NSIC has set aside 358 goods for purchase exclusively from SSIs in order to boost the Small-scale Industrial market.

6- In Government Tenders, There Is Some Relief

By lowering the price to L1, all MSMEs bidding for tenders within the price limit of L1+ 15% are allowed to supply up to 20% of the market.

7- Provides a variety of consulting services

Capacity building, policy structure, and entrepreneurship creation are among the consulting services offered by NSIC.

CONCLUSION

NSIC Registration is a credential available to businesses that fall under the Micro, Small, and Medium Enterprises category (MSMEs). Basically, the Government of India launched it to promote the products created or manufactured by these small and medium scale industries. Furthermore, the NSIC’s various schemes support various segments of society. Furthermore, each scheme focuses on different segments of society as well as small-scale industries in India and works to promote them.

For more information, please contact us on info@trijuris.com or call us Mb. No. 85100 58386 or 9310 717274.