For entrepreneurs in India, participating in government purchases can be a major boost to their business. However, getting registered for such schemes is often a tedious and confusing process. This is where the National Small Industries Corporation (NSIC) comes in. Since 1955, NSIC has been facilitating the growth of small enterprises through their Single Point Registration Scheme (SPRS), register Micro and Small Enterprises (MSEs) under a completely online process. With benefits such as access to tender sets free of cost, exemption from earnest money deposit, and reserved procurement percentages, NSIC’s SPRS is a game-changer for MSEs looking to expand their business in India. In this post, we will dive deeper into the NSIC registration process and why it is an essential step for MSEs in India.
A. Definition of NSIC Registration
NSIC Registration is a certification that small and micro enterprises can acquire to participate in government purchases and receive benefits from the Public Procurement Policy for Micro and Small Enterprises Order 2012. This certificate is issued by the National Small Industries Corporation Limited (NSIC), which was established in 1955 to support the growth of MSMEs in India. The Single Point Registration Scheme (SPRS) enables micro and small enterprises to get enlisted for government purchases and enjoy various perks like exemption from payment of Earnest Money Deposit (EMD), issue of Tender Sets free of cost, and so on. The eligibility criteria for obtaining NSIC registration include being a small or micro enterprise with a maximum investment in plant and machinery up to INR 25 lakhs or INR 10 lakhs, and completing one year of business commencement. However, provisional registration certificates can be issued to entities that have not yet completed a year of business. The validity of SPRS certificate is two years, after which it can be renewed.
B. Importance of NSIC Registration for Small Enterprises
NSIC Registration is of utmost importance for small enterprises in India, as it provides multiple benefits that can help these businesses flourish and compete effectively in the market. One of the key benefits of NSIC Registration is that it facilitates participation in government procurement, allowing small enterprises to secure tenders and contracts from the government. This can be a significant boost for small businesses looking to establish themselves in the market. Moreover, NSIC Registration also enables small businesses to obtain several subsidies and exemptions, including exemption from payment of Earnest Money Deposit (EMD) and priority sector lending. Additionally, registered small enterprises can also benefit from exposure to trade fairs, which can provide them with valuable opportunities to network and promote their products and services. Overall, registering with NSIC can significantly enhance the growth and expansion prospects of small enterprises in India, providing them with a level playing
II. Eligibility Criteria
A. Requirements for Micro Enterprises
Micro enterprises are an essential part of the Indian economy, and they are encouraged to participate in government purchases to promote their growth. To be eligible to participate in government purchases, micro enterprises need to register under the Single Point Registration Scheme (SPRS) of the National Small Industries Corporation (NSIC). As per the guidelines provided by the NSIC, the following are the requirements for micro enterprises to register under the SPRS:
1. The enterprise should have a valid Udyog Adhaar Memorandum (UAM) number.
2. The enterprise should possess its workshop or possess it on a lease basis.
3. The enterprise should have adequate technical and commercial advancement to provide services for supply to various government departments.
4. The enterprise should have a commercial production certificate and, if applicable, a provisional registration certificate.
5. The monitory limit of the provisional registration certificate is Rs. 5.00 Lacs.
6. The SPRS certificate is valid for two years and can be renewed after every two years by verifying the technical and commercial competence of the enterprise.
Micro enterprises that meet these requirements can apply for SPRS registration online on the NSIC website.
B. Requirements for Small Enterprises
Small Enterprises in India are an essential part of the economy, and the government has recognized their importance by offering various supports through programs such as National Small Industries Corporation (NSIC) Registration. To qualify for NSIC Registration, there are few requirements that Small Enterprises need to meet. First and foremost, the primary condition for a Small Enterprise is that its investment in plant and machinery should not be more than Rs 50 lakhs. Additionally, Small Enterprises should have a valid Permanent Account Number (PAN) and a valid registration under the Micro, Small, and Medium Enterprises Development (MSMED) Act. Along with these documents, the Small Enterprise should also have a bank account in its name. These requirements make Small Enterprises eligible to apply for NSIC Registration, which enables them to participate in government tenders and procurements easily and at a lower cost. Overall, meeting these requirements can help Small Enterprises grow and expand their businesses with the support of NSIC and the Indian government.
C. Business Commencement
After the eligibility criteria, an enterprise can apply for NSIC registration after starting the business. For those who have just started out, a provisional registration certificate shall be issued with a monetary limit of INR 5 Lacs. However, if an enterprise has completed one year of business commencement, then a full NSIC registration certificate shall be awarded. It is important to note that the registration is valid for two years and can be renewed after two years upon verification of the Commercial and Technical Competence (CTC) of the registered MSE. Another benefit of NSIC registration is that it enables the allotment of tenders totally free of cost to eligible MSMEs. Moreover, NSIC provides exposure to various domestic and global trade fairs that can help with the promotion of products and services. Registering with NSIC also ensures access to cheaper loans, rebates, concessions and exemption on direct taxes through different tax-saving schemes. NSIC registration is, therefore, a beneficial step towards the future growth and expansion of SMEs.
III. Schemes Available under NSIC Registration
A. Benefits of MSME Registration
MSs (Micro, Small, and Medium Enterprises) play a crucial role in the economic growth of the country. Registering with NSIC (National Small Industries Corporation) can provide numerous benefits and privileges to MSMEs. Some of the benefits of MSME registration are:
1. Access to financial assistance: MSMEs registered with NSIC can avail of loans and financial assistance at a lower interest rate from various banks and financial institutions. They can also participate in tender bids without paying any earnest money deposit.
2. Priority sector lending: As per RBI guidelines, banks have to lend a certain percentage of their funds to priority sectors like MSMEs. An MSME registration can help them avail of this facility.
3. Subsidies and exemptions: MSMEs registered with NSIC can get access to various subsidies, incentives, and tax exemptions provided by the government. They can also avail of benefits under schemes like credit guarantee and technology upgradation.
4. Exposure to trade fairs: NSIC organizes various trade fairs and exhibitions aimed at promoting MSMEs. Registered MSMEs can participate in these fairs to showcase their products and services and explore new business opportunities.
5. Online application process: The NSIC registration process is now available online, making it easier for MSMEs to apply and get registered quickly.
In conclusion, NSIC registration can pave the way for future growth and expansion of MSMEs by providing them access to various benefits and opportunities.
B. Priority Sector Lending
One of the major benefits of NSIC registration for MSMEs is access to priority sector lending. This means that MSMEs registered with NSIC have the advantage of getting loans on priority from banks. The government has mandated that a certain percentage of bank lending be directed towards priority sectors, which includes MSMEs. Through NSIC tie-ups with various nationalized and private sector banks, MSMEs can avail of credit support (fund-based or non-fund based limits) from these banks. This not only helps in meeting the credit requirements of MSMEs but also provides them with a competitive edge. Additionally, MSMEs registered with NSIC are eligible for priority sector lending from banks, which means lower interest rates and faster loan disbursal.
Some of the benefits of NSIC registration that come along with access to priority sector lending are:-
– Cheaper loans with an interest rate as low as 1.5%
– Ensures credit relating to MAT
– Access to any rebates and concessions
– Access to priority sector lending from banks.
– Eligibility for government schemes and subsidies
– Exemption on direct taxes through different tax saving schemes
– Ensures exposure to trade fairs conducted at the domestic and global level.
Therefore, getting an NSIC registration for your MSME can provide significant benefits, including access to priority sector lending, which can help in the growth and expansion of your business
C. Subsidies and Exemptions
NSIC registration under the Single Point Registration Scheme (SPRS) comes with many benefits and opportunities for small and micro enterprises in India. One such advantage is the access to subsidies and from the government. MSEs enrolled under the SPRS are eligible to receive free tender sets and exemption from payment of Earnest Money Deposit (EMD) when participating in government tenders. Besides, MSEs that quote within a price band of L1+15% can supply up to 25% of the total requirement of goods and can be allowed to supply a portion up to the L1 price where L1 is non-MSEs. The government has also set an annual goal of minimum 25% of the total purchases of goods or services to be sourced from MSEs under the SPRS. Out of this 25%, 4% is earmarked for units owned by Schedule Caste/Schedule Tribes and 3% is earmarked for units owned by women entrepreneurs. By obtaining an NSIC registration under SPRS, micro and small enterprises can access subsidies and exemptions and gain a stronger foothold in the government procurement market.
D. Exposure to Trade Fairs
NSIC Registration provides exposure to trade fairs for MSMEs, which is a critical factor for the growth and expansion of Small Enterprises. NSIC facilitates participation in domestic and international trade fairs, which helps MSMEs showcase their products and services to a broader audience. Participating in trade fairs gives MSMEs an opportunity to meet potential customers, suppliers, and industry leaders.
NSIC’s Procurement and Marketing Support Scheme (PMSS) and Special Marketing Assistance Scheme (SMAS) ensure that MSMEs can participate in trade fairs. To avail of these schemes, the MSME unit must apply to the nearest NSIC field office. After scrutinizing the application, NSIC forwards proposals to the NSSH Cell or Office of DC-MSME Ministry of MSME for approval.
By participating in trade fairs through NSIC, MSMEs can gain global exposure, expand their business, and learn about new trends and technologies. They can also connect with potential buyers, distributors, and investors. Overall, exposure to trade fairs helps MSMEs increase their visibility, build their brand, and drive growth.
IV. NSIC Registration Procedure
A. Online Application Process
The online application process for NSIC registration is convenient and easy to follow. Firstly, Micro and Small Enterprises (MSEs) need to obtain a Udyam Registration Number before applying for Single Point Registration Scheme (SPRS) with NSIC. The enrolment under SPRS is entirely online and involves a seven-step form, which can be filled staggeredly, saved, and resumed later. The information entered in each step can be reviewed before moving on to the next step. It is always advisable to keep all the necessary forms, annexures, and documents readily accessible in a folder on the desktop for fast uploading. Moreover, the fee for registration will depend on the category of the enterprise, such as Micro or Small. Third-party inspection agencies are involved in store item inspection, so MSEs can choose them according to their expertise and jurisdiction. The final certificate will be available online, and the NSIC office will also send a physical certificate copy by post. Therefore, the online application process for NSIC registration is straightforward and provides convenient access to many schemes and benefits.
B. Technical Inspection
One crucial step in the NSIC registration process is the technical inspection of the unit. Once an enterprise applies for registration, the NSIC forwards the application to the nearest zonal or sub-branch office for technical inspection. This inspection is necessary to ensure that the enterprise meets the eligibility criteria set forth by the NSIC. The inspection team evaluates various aspects of the enterprise, such as its infrastructure, manufacturing process, and quality control measures. They also verify the ownership documents, sales deeds, and other necessary documents submitted by the enterprise. Based on the inspection report, the NSIC recommends the enterprise for registration and grants registration to the MSME unit. The technical inspection is a critical aspect of the NSIC registration process, and the enterprise should ensure that it meets all the requirements before applying for registration. Once registered, the enterprise can avail several benefits such as priority sector lending, exemptions on direct taxes, exposure to trade fairs, and access to government tenders.
C. Recommendation for NSIC Registration
If you are a small or micro enterprise, seeking to grow and expand your business, then NSIC registration is a must-have. The National Small Industries Corporation (NSIC) has been facilitating the growth of small enterprises since 1955 and offers various benefits to the registered units under its Single Point Registration Scheme (SPRS).
NSIC Registration offers a chance to participate in government purchases and a host of other benefits, including priority sector lending, subsidies and exemptions, and exposure to trade fairs. The registration process is completely online, and the provisional certificate can be issued to micro and small enterprises who have already commenced their commercial production but not completed one year of existence with a monetary limit of Rs. 5.00 lacs.
If you are eligible and wish to register with NSIC, then follow the online application process and complete the technical inspection. We recommend that you choose an inspection agency according to your domain expertise and jurisdiction.
Registering with NSIC can unlock numerous benefits and open up future growth and expansion opportunities for your small enterprise.
A. Importance of NSIC Registration for SMEs
NSIC registration is a critical aspect of business for small and medium enterprises (SMEs). It offers a host of benefits to entities operating under the Micro Small and Medium Enterprises scheme. Registration ensures that SMEs can avail of subsidies, exemptions, and exposure to trade fairs. This certification is mandatory for government purchases, making it an essential requirement for all SMEs engaged in such transactions. The SPRS registration process is entirely online, and renewal can be completed six months before the certificate expiry date. The benefits of registering with NSIC are many. The units enlisted under Single Point Registration Scheme of NSIC are exempt from payment of Earnest Money Deposit (EMD). Additionally, they can quote prices within L1+15, supply up to 25% of the requirement, and receive tender sets free of cost. Every government department has a minimum procurement target of 25%, and 4% is set aside for units owned by Schedule Caste/Schedule Tribes, and 3% for women entrepreneurs. NSIC registration opens up business opportunities for SMEs and induces growth and expansion.
B. Benefits of Registering with NSIC
Registering with NSIC provides a plethora of benefits for small and micro enterprises, making it an essential step towards growth and development. Some of these benefits include easier access to loans, with interest rates as low as 1.5%, and the ability to carry forward minimum alternate tax for up to five years instead of 10. NSIC registration also ensures access to a range of rebates and concessions, including subsidies for barcode registration and exemption on direct taxes through tax-saving schemes. Registered enterprises can also use the Udyam Registration Portal to access government e-marketplaces and e-tenders, making it easier to establish partnerships and find new business opportunities. NSIC registration also offers exposure to trade fairs conducted at the domestic and global levels, allowing businesses to connect with potential clients and partners from all over the world. With so many benefits to offer, it’s easy to see why getting registered with NSIC is a smart move for SMEs looking to grow and expand.
C. Future Growth and Expansion for SMEs
After registering with NSIC, micro, small, and medium enterprises can expect a host of benefits that can potentially spur their growth and expansion. With increased exposure to trade fairs and access to priority sector lending, these enterprises can gain a competitive edge over their counterparts. Additionally, subsidies and exemptions offered by NSIC can help SMEs save costs and invest in research and development to improve their products and services.
Moreover, registering with NSIC opens up opportunities to connect with buyers and suppliers globally through their online platform. With the help of Infomediary Services, MSMEs can create a digital presence for their businesses, showcase their core competencies and access a plethora of information on business technology and finance.
The National Institute for Micro, Small and Medium Enterprises also offers a wide range of services that focus on capacity building, research, consultancy, skilling, education, and extension. This can help uplift the skills of the workforce and potentially increase productivity and innovation in the long run.
Overall, NSIC Registration in India can be beneficial for SMEs looking to expand their business in the local and global market.
VI. Documents Required for NSIC Registration in India
1. Proof of identity of the proprietor or director of the company.
2. Proof of address of the office which is to be registered.
3. PAN card of the proprietor or director of the company.
4. GST registration certificate.
5. MSME registration certificate.
6. A copy of the partnership deed, in case of a partnership firm.
7. A copy of the Memorandum of Association (MoA) and Articles of Association (AoA) in case of a company.
8. A copy of the certificate of incorporation in case of a company.
VII. Advantages of NSIC Registration in India
1. NSIC registration helps small-scale businesses in expanding their horizon and enhancing their competitiveness.
2. It provides financial assistance in procuring raw materials, machinery, and other assets required for the business.
3. It also provides marketing assistance and helps small businesses in securing orders from large corporations.
4. NSIC registration helps in providing training and skill development to the employees of small businesses.
5. It provides easy access to credit and financing from banks and other financial institutions at competitive interest rates.
VIII. Disadvantages of NSIC Registration in India
1. The process of obtaining NSIC registration can be time-consuming and tedious.
2. The eligibility criteria for NSIC registration can be stringent, which may limit the number of small businesses that can benefit from it.
3. The documentation required for NSIC registration can be extensive, which can be a problem for small businesses that have limited resources.
IX. Process of getting NSIC Registration in India
1. Visit the NSIC website and download the application form.
2. Fill in the application form with all the necessary details.
3. Attach the required documents, as mentioned on the application form.
4. Pay the NSIC registration fee.
5. Submit the application form along with the required documents to the nearest NSIC office.
X. Types of INSIC Registration in India
1. Single Point Registration Scheme (SPRS) – This scheme is for giving assistance to Micro & Small Enterprises (MSEs) by providing proper certification of their capabilities.
2. Performance and Credit Rating Scheme (PCRS) – This scheme provides a platform for small businesses to assess and improve their performance and creditworthiness.
XI. Frequently Asked Questions about INSIC Registration in India
1. What is NSIC registration?
Ans. NSIC registration is a scheme launched by the Government of India to promote and assist small-scale businesses in the country.
2. What are the benefits of NSIC registration?
Ans. NSIC registration helps small businesses in expanding their horizon, providing financial and marketing assistance, and access to credit and financing at competitive interest rates.
3. What are the documents required for NSIC registration?
Ans. The documents required for NSIC registration include proof of identity and address, PAN card, GST and MSME registration certificates, partnership deed, MoA, AoA, and certificate of incorporation.
4. What is the process for getting NSIC registration?
Ans. The process for getting NSIC registration involves downloading the application form from the NSIC website, filling it with necessary details, attaching required documents, paying the registration fee, and submitting the application form to the nearest NSIC office.
5. What are the types of NSIC registration in India?
Ans. The types of NSIC registration in India include Single Point Registration Scheme (SPRS) and Performance and Credit Rating Scheme (PCRS).