NSIC Registration- An Overview
To strengthen the stance of Micro, Small and Medium Enterprises (MSMEs), the government brought out the system for registration under the NSIC. NSIC stands for National Small Industries Corporations. Any MSME that register’s under this scheme would receive the benefits allied to government purchases.
Any MSME which is registered under this system should consider the Single Point Registration System (SPRS). Through this system, different benefits can be availed by the MSME. An official order brought out this system of Single Point Registration under the Public Procurement Policy for Micro & Small Enterprises (MSEs) Order 2012.
Through this scheme, MSMEs can avail different forms of government benefits and foster growth and development in different sectors. There are different forms of schemes under the system of NSIC. These schemes would include the Single Point Registration System, the Credit Rating Scheme and Marketing Schemes. All MSMEs which register with the NSIC would secure the benefits of all the available schemes.
Development of NSIC
NSIC was established in the year 1955 as a form of Public Sector Undertaking. The NSIC is prominently known as a Mini Ratna Public Sector Undertaking.
This NSIC is an ISO 9001-2015 government certified undertaking which has some form of quality standards. With the view of uplifting the MSME sector, this institute was established. NSIC promotes credit facilitation for MSMEs.
Objectives of NSIC Registration
The following are the objectives of NSIC registration:
Assistance to SSI and MSME
One of the main aims of NSIC registration is providing different forms of allied benefits to MSME and SSI. Any MSME or SSI can claim different forms of incentives and schemes through this registration.
By registering under the NSIC, MSMEs can avail benefits to secure machinery such as equipment based on hire purchase. This system can be carried out with minimum formalities through the NSIC registration.
By utilising the SPRS, MSME can secure government purchases and tenders. Apart from this, MSMEs would be notified regarding any tender.
Through this scheme, MSMEs can participate freely in government contracts and tenders. Without registration, MSMEs would have to consider opting to participate under this system.
Supply of Raw Materials
NSIC system also supplies a different form of raw materials to MSME and small scale industries.
Hence it is worthwhile to register under National Small Industries Corporation.
Benefits of NSIC Registration
MSME and Small Scale Industries can avail different forms of benefits through NSIC registration:
MSMEs registered under this scheme can receive the benefits of taking part in International trade and different forms of conventions of the government. Small Scale Industries would be notified the same regarding this.
MSME registered under the NSIC system would receive advantages of world class technology. Digitisation would be introduced to MSME and technological developments can be learnt through these exhibitions.
Apart from this, MSME/SSI would be invited to other exhibitions.
Skill Development and Training
As there is promotion of entrepreneurship at a national level, the NSIC contributes to skill development amongst different individuals who are taking part in development of MSME.
Exempted from Earnest Money Deposit Scheme (EMD)
All MSME and SSI registered under this scheme are exempted from the requirement of depositing some form of earnest money.
Eligibility Criteria for NSIC registration
The following criterion has to be satisfied for NSIC registration:
All Micro, Small and Medium Enterprises or any other entity which is registered under the MSMED Act, 2006 can register under the NSIC system. Even Small Scale Industries (SSI) can register under this scheme.
MSME commenced Activities
MSMEs which have just begun activities also can take part in this scheme. However, such entities must not have any audited balance sheet for one year. Such entities can apply for provisional registration with the authority.
Regulatory Authority/Body for NSIC Registration
NSIC registration is beneficial for all entities which are engaged in carrying out different activities under small scale industries sector. The main regulatory authority for NSIC is the Ministry of Micro, Small and Medium Enterprises (M/o MSME).
The NSIC is a form of special public sector undertaking under this act. The MSMED Act, 2006 regulate MSME. The NSIC is regulated under the Public Procurement Policy for Micro & Small Enterprises (MSEs) Order 2012.
Schemes under NSIC
Different schemes are introduced under the NSIC. The following are the schemes which are beneficial for MSME and SSI:
Under the credit facilitation scheme, the competency and the ability to pay back loans are determined. This is usually carried out by an independent third-party. Through this scheme, MSMEs credit rating can be secured and qualified.
Raw Material Assistance
Under this scheme, financing options are provided to MSME for procuring raw materials at concessional rates. Through this scheme, MSMEs can concentrate on manufacturing services which are more crucial to the sustenance of the business.
Single Point Registration System
Registering under this system allows seamless facilitation when it comes to procurement and purchase of materials under government schemes. Apart from this units which are registered under this scheme are exempted from providing any form of Earnest Money Deposit under the scheme.
With the increase of international competition, information is crucial to be ahead of other competitors. Hence under this scheme, information based services and news is provided to MSMEs. Through this system, MSMEs and other entities can develop their services to stay ahead in times of competition.
National SC and ST Hub
Through this scheme of NSIC, all enterprises which are run by SC and ST would be empowered to take part in government initiatives. Through this process there can be improvement in the response of different forms of MSME.
Procurement Marketing Support
Apart from securing government procurement through NSIC registration, MSMEs and SSI secure the benefits of marketing such materials and products. Hence through government incentives offered through this scheme procurement based activities can also be promoted. Marketing initiatives are developed through this system.
Under this scheme of NSIC infrastructural development and support is provided to all SSI and MSME at a national level. Infrastructural support would also include improving the overall infrastructure of the systems utilised by SSI and MSME.
Hence, an MSME can secure the above benefits by using the facilities provided by the above schemes.
Online Procedure for NSIC Registration
The following procedure has to be considered for NSIC registration by an MSME or SSI:
Login to Portal
An applicant can utilise the online registration process for NSIC registration. First and foremost the applicant has to go online (http://www.nsicspronline.com/appAdministrator/NewUnitRegistrationIntro.aspx).
Usually it is more convenient to utilise the system of online registration. However, an applicant can also consider the system of offline registration. This application can either be downloaded through the website or can be got through the NSIC office. Usually the NSIC office would be present in every district or zonal branch. The applicant must click on download GP for the application. After the registration is carried out the requisite fees has to be paid to the department.
The fees for registration has to be paid online.
After this the scanned copies of all the documents must be uploaded online. Along with this certificate, the proof of the inspection report must also be submitted to the authority.
In the final step, the application must be submitted online. The authority will inspect the application and if all meets the requirements, then the SPRS certificate would be provided. When issuing the SPRS the inspection report will be utilised for the process.
Offline Procedure for NSIC registration
The following procedure is required for offline registration:
Download Copy of NSIC Form
The applicant is required to either download the form online or secure the same from the respective office. After downloading the form, the applicant has to print the same.
The applicant has to fill the form with all information as required.
Submit Form Along with Reports
After this process, the SSI or MSME is required to submit the form. Along with the form reports have to be submitted to the district, branch or the zonal office of the NSIC.
File the Form
After the form is filled the same has to be filed with the inspection office. Along with this other forms of reports have to be submitted. This is required to be submitted within a specific period of time to ensure that the process of inspection of the MSME premises is completed.
Certificate granted by NSIC
In the final step the NSIC will grant the certificate of registration (GP certificate. However, this certificate would only be granted if there is a positive report after the inspection of the premises.
Documents for NSIC registration
- Udyog Aadhaar Information such as the Udyog Aadhaar Memorandum.
- Details of the machinery and equipment in the premises. This would include the date of purchase, the date of validity and any other information related to machinery.
- Certificate of Incorporation in case the applicant is a company.
- Partnership deed in case the applicant is a partnership entity.
- Form-A copy in case the applicant is a partnership firm. The form-A copy must be provided by the registrar of firms.
- LLP Agreement in the case of a partnership firm.
- Attested documents in case of proof of ownership.
- Memorandum of Association and Articles of Association (MOA and AOA).
- Copy of the Bank report of the applicant.
- Aadhaar Details and PAN details of the applicant.
- ISO Certification.
- BIS License if the same is required.
- Copy of the utility bill –electricity and water.
- Information related to the Man power and workers engaged in the premises.
- Annual Audited Statements of the Company