SSI Registration

• SSI do registration with the Director of

Industries of the concerned State Government

• 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
 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 SSI 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 SSI).
 Objectives of The Registration
Scheme
 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 SSI.
 Features of The Scheme

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.
 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.
 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.
 De-Registration
• A Small Scale Unit can violate the regulations in
the following ways which will make it liable for
de-registration:
 - It crosses the investment limits.
 - It starts manufacturing any new item or items
that require an industrial license or other kind of
statutory license.
 - It does not satisfy the condition of being
owned, controlled or being a subsidiary of any
other industrial undertaking.
 DOCUMENTATION REQUIREMENTS
PARTNERSHIP FIRM
• A copy of the Partnership Deed
• Registration certificate if the firm is availing of any credit
facility / Secured
Overdraft / Temporary Overdraft facility
• PAN Card / Form No. 60 of the firm
• Passport size Photograph of the authorized signatories
• Identity Proof of all the authorized signatories as per List-A
• Signature Proof of all the authorized signatories as per List-
B
• Address Proof of all the authorized signatories as per List-C
• Mailing Address of the Concern to be submitted as per
List-D only if the address is different from the one
mentioned in the Partnership deed or from
that of any of the partners who is an authorized signatory
 List A - Identity Proof (Any One)

• Passport
• PAN Card
• Voter ID Card
• Employee ID Card in case of Pvt. & Public Ltd. Cos
• Defence / Govt. ID Card
• Photo Credit / Debit Card
• Driving License
• Ration Card having customer’s photograph
 List B - Signature Proof (Any One)

• Passport
• PAN Card
• Employee ID Card in case of Pvt. & Public Ltd. Cos
• Defence / Govt. ID Card
• Photo Credit / Debit Card
• Crossed Self Cheque
• Driving License
• Ration Card having customer’s signature
 List C - Address Proof (Any One)

• Passport
• Voter ID Card
• Ration Card
• Bank A/c. / Latest Credit Card Statement (not more than 3 months
old)
• Employer’s Letter in case of Pvt. & Public Ltd. Cos.
• Electricity / Telephone / Mobile Bill (not more than 3 months old)
• Life Insurance Policy / Premium Receipts
• House Lease Agreement
• RC Book (Vehicle Registration Book)
• Cooking Gas Consumer Book
• House Sale Agreement
 List D-Document pertaining to the Proprietary /
Partnership Firm (Any One)

• Shop and Establishment Certificate / Municipal License

• Sales Tax Returns / Registration Certificate / Profession
Tax Regn. Certificate
• Existing Bank Account Statement with account opening
amount cheque from the same account
• License to Carry on Business from Registered Authority
E.G.: Chemists-FDA
• Certificate of Practice Issued by Institute of Chartered
Accountants of India / Institute of Cost Accountants of
India / Company Secretary of India / Medical Council
• Chartered Accountant’s Certificate.
• The Memorandum of Association
• The Articles Of Association
• An agreement, if any, which the company
proposes to enter into with any individual
for appointment as its managing director or
whole-time director or manager.
• A statutory declaration in Form 1 by an
advocate, attorney or pleader entitled to
appear before the High Court or a company
secretary or Chartered Accountant in whole-
time practice in India who is engaged in the
formation of the company or by a person who
is named as a director or manager or
secretary of the company that the
requirements of the Companies Act
• Written consent of directors in Form 29 to
agree to act as directors
• The complete address of the registered office
of the company in Form 18
• Details of the directors, managing director and
manager of the company in Form 32.
• On obtaining the incorporation certificate, a
“Private Company” is eligible to transact
business. The private company is now
incorporated.
• A “Public Company”, however cannot transact
business unless it obtains a ‘trading certificate'
• Public companies, generally wish to transact
business by raising capital from the general
public. The process of raising capital from the
public is carried out in this stage.
• For the purpose of raising capital from the public,
the company needs to prepare and issue a
document known as ‘prospectus’. Public
companies that are confident of raising capital on
their own need to prepare a document known as
‘statement in lieu of prospectus’.
• In this stage, a draft of the prospectus is finalized.
Copies of the prospectus are printed. A copy of
the prospectus, duly signed by minimum 2
directors and countersigned by the secretary is
filed with the ROC.
• Thereafter the Prospectus is issued to the public.
Advertisement of issue of the prospectus is
usually carried out in newspapers. The public
need to pay a nominal application fee and
subscribe to the capital of the company within a
specified period.
• Application to Stock exchange:
An application must be sent to the regional
stock exchange for getting the name of the
company listed.
• Opening of bank account:
The company must open its bank account for
receiving of application money.
• Appointment of experts:
The company must appoint it’s brokers,
solicitors and auditors of the company.
• Expert opinion:
An expert’s opinion regarding the bright
prospects of the company is usually written in
the prospectus. Experts are usually,
accountants, values, solicitors etc.
• There are certain guidelines given by SEBI
(security exchange board of India) regarding
listing of the company on Stock exchange and
issue of capital. These need to be followed;
otherwise SEBI does not let the company be
listed.