Overview of NSIC Registration

Established in 1955, the National Small Industries Corporation Limited is a government undertaking operating within the Micro, Small, and Medium Enterprise sector. Currently, NSIC holds the esteemed status of being a Mini Ratna Public Sector Undertaking and is duly certified with ISO 9001:2015.

The primary objective behind NSIC registration was to cultivate the growth of MSMEs in India. It offers comprehensive support services including technology, support services, finance, and marketing. NSIC plays a vital role by registering Micro & Small Enterprises under the Single Point Registration Scheme for participation in government purchases.

For enterprises seeking registration, those with MSME or Udyog Aadhaar registration can apply either online or by submitting an application at any of the NSIC offices. Following submission, NSIC forwards the application to the nearest zonal, branch, or sub-branch office for conducting a technical inspection of the unit and providing recommendations for National Small Industries Corporation registration. Upon receiving the inspection report, NSIC grants registration to the MSME unit.

Regulatory Authority/Body for NSIC Registration

The regulatory authority for National Small Industries Corporation registration is primarily the Ministry of Micro, Small and Medium Enterprises (M/o MSME). The key details regarding the regulatory framework are as follows:

• Regulatory Body:

The Ministry of Micro, Small and Medium Enterprises serves as the main regulatory authority for National Small Industries Corporation registration.

• Special Public Sector Undertaking:

NSIC is categorised as a special public sector undertaking under the MSMED (Micro, Small and Medium Enterprises) Act, 2006.

• Regulation under MSMED Act, 2006:

The activities related to NSIC fall under the purview of the MSMED Act, 2006. This comprehensive act regulates various aspects of Micro, Small, and Medium Enterprises.

• Public Procurement Policy:

NSIC is also regulated under the Public Procurement Policy for Micro & Small Enterprises (MSEs) Order 2012. This policy outlines guidelines for government procurement from Micro and Small Enterprises, with NSIC playing a significant role in the process.

Functions of NSIC (National Small Industries Corporation)

NSIC plays an important role in supporting and promoting the growth of Micro, Small, and Medium Enterprises. The functions performed by NSIC include:

• Development Schemes:

NSIC runs various development schemes aimed at enhancing the competitiveness of MSMEs. These schemes are designed to provide financial and non-financial support to promote the growth of small-scale enterprises.

• Unified Support Services:

NSIC offers unified support services to MSMEs in the areas of marketing, technology, and finance. This comprehensive approach is intended to address the diverse needs of small businesses and help them thrive in a competitive market.

• Technical and Skill Development:

NSIC is involved in providing technical assistance and skill development programs to MSMEs. These initiatives contribute to the improvement of the capabilities and efficiency of small enterprises.

• Allotment of Tenders:

NSIC facilitates the allotment of tenders free of cost to eligible MSMEs. This support aims to provide small businesses with opportunities to participate in government procurement processes and other tendering activities.

NSIC's complex functions are meant to empower MSMEs by addressing challenges related to finance, technology, marketing, and skills development. Through these initiatives, NSIC contributes to the overall growth and sustainability of small-scale enterprises in the competitive business sector.

Benefits of NSIC Registration for Small Scale Units

Small scale units that obtain MSME (Micro, Small, and Medium Enterprises) registration enjoy a variety of benefits, contributing to their growth and sustainability. Given below are the advantages offered:

• Access to Cheaper Loans:

MSMEs availing this scheme can access loans at a reduced interest rate, often as low as 1.5%, promoting financial support for business expansion.

• MAT Credit Extension:

Ensures the extension of credit relating to Minimum Alternate Tax (MAT) for up to five years instead of the standard 10 years.

• Rebates and Concessions:

Eligibility for rebates and concessions, providing financial advantages to MSMEs.

• Concessions on Patent Registration:

MSME registration holders can avail concessions on the registration of patents, encouraging innovation and protection of intellectual property.

• Access to Government Platforms:

Utilisation of the Udyam Registration Portal for access to Government e-Marketplace and participation in e-tenders.

• One Time Settlement Fee:

Provision of a one-time settlement fee for MSMEs facing payment issues with vendors, facilitating resolution of financial challenges.

• Government Scheme Benefits:

Assistance in securing benefits from various government schemes, including the Public Procurement Policy, Credit Linked Capital Subsidy Scheme, and Credit Guarantee Scheme.

• Priority Sector Lending:

Entities with MSME registration under this scheme are eligible for priority sector lending from banks, enhancing their access to credit.

• Security Deposit Waiver:

Access to a waiver on government security deposits, particularly beneficial for participating in e-tenders.

• Subsidy for Barcode Registration:

Ensures subsidy for Barcode registration, facilitating compliance with industry standards.

• Exemption on Direct Taxes:

MSMEs registered under this scheme can enjoy exemption on direct taxes through various tax-saving schemes, reducing the financial burden on businesses.

• Fees Relaxation for ISO Certification:

Relaxation of fees for ISO certification, encouraging MSMEs to adopt international quality standards.

• Electricity Bills Concession:

Provision of concessions on electricity bills, contributing to reduced operational costs for MSMEs.

• Exposure to Trade Fairs:

MSMEs with registration under this scheme gain exposure to domestic and global trade fairs, providing opportunities for networking and business development.

Objectives of NSIC Registration

NSIC registration serves various objectives, aiming to provide assistance and support to Small Scale Industries and Micro, Small, and Medium Enterprises. The key objectives of National Small Industries Corporation registration include:

• Assistance to SSI and MSME:

The primary objective is to offer different forms of allied benefits to MSMEs and SSIs. National Small Industries Corporation registration enables these enterprises to claim various incentives and schemes.

• Provision of Machinery:

National Small Industries Corporation registration allows MSMEs to avail benefits such as securing machinery and equipment through mechanisms like hire purchase, with minimal formalities.

• Government Tenders:

NSIC facilitates access to government purchases and tenders through the Single Point Registration Scheme (SPRS). MSMEs registered with NSIC are notified of relevant government tenders, providing opportunities for business growth.

• Free Participation in Contracts and Tenders:

MSMEs registered with NSIC can participate freely in government contracts and tenders. This eliminates barriers that would otherwise be present for non-registered MSMEs.

• Supply of Raw Materials:

NSIC plays a role in the supply of various raw materials to MSMEs and small-scale industries, contributing to the smooth operation of their businesses.

• Efficient Government Support:

Through National Small Industries Corporation registration, MSMEs can access government support, ensuring that they are well-informed about available schemes and incentives.

Schemes Available under NSIC Registration

NSIC offers a range of schemes to support and empower businesses. These schemes cover different aspects of business operations and development. Entrepreneurs and businesses can explore these schemes based on their specific needs and objectives, using the support provided by NSIC for sustainable growth.

The following is a list of schemes available under National Small Industries Corporation registration:

• Single Point Registration Scheme:

Simplifies the registration process for Micro and Small Enterprises by providing a single point of registration.

• Consortia & Tender Marketing:

Facilitates collaboration among MSEs to participate in consortia for joint ventures and collectively bid for tenders.

• Procurement Marketing Scheme:

Aims to enhance market access for MSEs by promoting their products and services in the procurement market.

• Performance and Credit Rating Scheme:

Provides assistance in obtaining performance and credit ratings, enhancing the credibility of MSEs in the market.

• Bill Discounting Scheme:

Supports MSEs by facilitating the discounting of bills and improving cash flow management.

• Credit Facilitation by Banks:

Collaborates with banks to facilitate credit access for MSEs, promoting financial assistance and growth.

• Marketing Intelligence:

Offers intelligence and insights to MSEs regarding market trends, helping them make informed business decisions.

• Raw Material Assistance Scheme:

Provides assistance to MSEs in procuring raw materials at concessional rates, supporting cost-effective production.

• Procurement and Marketing Assistance Scheme:

Assists MSEs in procurement and marketing activities, promoting business growth and expansion.

• Infomediary Services:

Provides information services to MSEs, helping them stay informed about industry developments and opportunities.

• Skill Development Service:

Focuses on enhancing the skills of the workforce in MSEs, contributing to improved productivity and competitiveness.

Eligibility Criteria for NSIC Registration

To obtain National Small Industries Corporation registration, applicants must fulfil specific eligibility criteria. The following are the mandatory requirements that applicants need to meet before applying for National Small Industries Corporation registration:

1.Micro Enterprises Eligibility Criteria:

• Investment in Plant & machinery up to Rs. 25 lakhs in the manufacturing sector.
• Investment in Plant & machinery up to Rs. 10 lakhs in the service sector.

2.Small Enterprises Eligibility Criteria:

• Investment in Plant & machinery up to Rs. 5 Crores in the manufacturing sector.
• Investment in Plant & machinery up to Rs. 2 crores in the service sector.
• Holding an MSME Certificate.

3. Business Commencement Requirement:

• Completed one year of business commencement.

4.Provisional Registration for Early-stage MSEs:

• MSEs (Micro and Small Enterprises) under the Single Point Registration scheme, which have not completed one year of business commencement, may be issued a Provisional Registration Certificate.

It is essential for potential registrants to carefully assess and ensure compliance with these eligibility criteria before initiating the National Small Industries Corporation registration process.

Documents Required for NSIC Registration

Obtaining NSIC registration requires the submission of specific documents to ensure the authenticity and eligibility of the applicant. The following is a list of documents required for National Small Industries Corporation registration:

1.Identity and Address Proof:

• Identity proof and address proof of the authorised person.

2.MSME Registration Documents:

• Copy of the Acknowledgement of MSME registration.

3.Business Ownership Documents:

• Signed copy of PAN (Permanent Account Number), Udyog Aadhaar Memorandum Number.
• Signed copy of ownership documents of the business location (CoI).
• Copy of sales deed, if applicable.

4.Declaration from Directors/Partners/Sole Proprietor:

• Declaration from the Directors, Partners, or Sole Proprietor indicating any links with large-scale units.

5.Quality Control Measures:

• Write-up on quality control measures adopted by the firm for ensuring the quality of raw materials, assembly, sub-assembly, and finished products.

6.List of Quality Control Equipment:

• List of quality control equipment and testing facilities available in the factory.

7.Type Test Report:

• Copy of the type test report from an independent laboratory, where applicable, as mentioned in the relevant standard.

8.Business Existence Proof:

• Business existence proof for a minimum of 3 years, along with proof of ownership of raw materials, plant/machinery, equipment, and tools.

9.Employee Details:

• Particulars of employees involved in production and services.

10.MSME Data Bank Entry:

• Particulars of entries made in the MSME Data Bank.

11.Memorandum - Annexure-F:

• Memorandum as per the application’s Performa (Annexure-F).

12.Quality Control Review:

• Review on quality control measures chosen by the firm for quality control.

13.Financial Documents:

• Audited balance sheet and profit & loss statement for the previous 3 years.

14.Banker’s Certificate:

• Banker’s certificate.

15.BIS Licence and ISO Certification:

• Copy of BIS licence, if applicable.
• Copy of ISO 9000 (not obligatory).

Ensuring the timely and accurate submission of these documents is important for a successful NSIC registration process.

Procedure to Obtain NSIC Certificate

Enterprises eligible for NSIC registration, particularly those already registered under MSME or possessing Udyog Aadhar Registration, can follow either an online or an offline procedure to obtain the NSIC certificate. The procedure involves these methods:

Online Procedure to Obtain NSIC Certificate

The online process of obtaining the NSIC certificate involves these steps:

• Step 1: Visit the Official Website

An applicant should visit the official NSIC website at www.nsicspronline.com to initiate the NSIC certificate application process.

• Step 2: Register in MSME Data Bank

MSMEs seeking Single Point Registration must register in the MSME Data Bank using their Udyog Aadhar Memorandum Number and PAN.

• Step 3: Fill in Application Details

Complete the application form on the NSIC website, providing the required details using the PAN and UAM numbers.

• Step 4: Submission of Application

Submit the filled application form along with the necessary supporting documents to the nearest NSIC's zonal or branch office.

• Step 5: Payment of Requisite Fee

Pay the required fee for the NSIC certificate through the designated payment channels.

• Step 6: Certificate Dispatch

After the payment is confirmed and the submitted documents are verified by the NSIC authority, the NSIC certificate will be dispatched to the applicant by post.

Following these steps diligently will help MSMEs obtain the NSIC certificate, which can unlock various benefits and opportunities for their business.

Offline Procedure for NSIC Registration

For those opting for offline NSIC registration, the following procedure is to be followed:

• Step 1: Download NSIC Form:

The applicant can download the NSIC registration form online or obtain a physical copy from the respective NSIC office. Once obtained, the applicant needs to print the form.

• Step 2: Provide Information:

Complete the NSIC registration form by providing all the necessary information as required.

• Step 3: Submit Form Along with Reports:

Submit the filled registration form along with the required reports to the district, branch, or zonal office of NSIC. The submission should include all necessary supporting documents.

• Step 4: File the Form:

After filling out the form, it needs to be filed with the inspection office. Alongside the form, other required reports must also be submitted within a specific timeframe. This ensures that the inspection of the MSME premises can be conducted.

• Step 5: Certificate Granted by NSIC:

Upon completion of the inspection and a positive report, NSIC will grant the Certificate of Registration (GP certificate). This certificate serves as official recognition of the MSME's registration with NSIC.

It's important for applicants to adhere to the specified timelines and provide accurate information during the offline NSIC registration process. The successful completion of the inspection is a key determinant for receiving the NSIC registration certificate.

Validity of NSIC Registration

For MSMEs obtaining NSIC registration under the Single Point Registration scheme, the validity of the NSIC certificate is as follows:

• NSICCertificate (Full Registration):

The NSIC Certificate granted to MSMEs remains valid for a period of 2 years.

• Provisional NSIC Certificate:

In the case of a Provisional NSIC certificate, which is granted to MSMEs with a limit of Rs. 5 Lakhs, the validity is for 1 year from the date of issue of the certificate.

Charges for NSIC Registration

NSIC registration involves various fees that are applicable during the registration process. The charges include registration fees and inspection charges, along with professional fees. The details of the fees are as follows:

• Registration Fees:

1. Micro-sized MSME:

• Turnover up to Rs. 1 Crore: Rs. 3000
• Turnover exceeding Rs. 1 Crore: Rs. 3000 + Rs. 1500 for additional turnover exceeding 1 Crore

1. Small-sized MSME:

• Turnover up to Rs. 1 Crore: Rs. 5000
• Turnover exceeding Rs. 1 Crore: Rs. 5000 + Rs. 2000 for additional turnover exceeding 1 Crore

• Inspection Charges:

These charges are paid in addition to the registration fee and vary based on the size of the MSME.

1. Micro-sized MSME:

• Inspection Charges: Rs. 2000

1. Small-sized MSME:

• Inspection Charges: Rs. 3000

It is important for entities seeking NSIC registration to be aware of these fees and ensure timely payment for a smooth registration process. Additionally, professional fees may also be applicable and should be considered as part of the overall cost associated with obtaining NSIC registration.

Why Choose StartupFino for NSIC Registration?

The Ministry of Micro, Small and Medium Enterprises is the primary regulatory authority overseeing National Small Industries Corporation registration, and NSIC operates as a special public sector undertaking in accordance with the MSMED Act, 2006. Additionally, its role in public procurement is governed by the Public Procurement Policy for MSEs.

StartupFino is a company that specialises in offering complete NSIC registration services. Registering under the National Small Industries Corporation is considered beneficial for MSMEs and SSIs as it opens up avenues for government contracts, provides access to machinery, and facilitates the supply of essential raw materials, among other advantages.