The Government of India in order to boost the small scale industries have founded The National Small Industries Corporation Ltd. (NSIC), in 1955. It is an enterprise of the Government of India under the Ministry of Micro, Small and Medium Enterprises (MSME). The idea to form this corporation is to fulfill the mission to encourage, support and develop the growth of small-scale industries in the country. It is also known as Mini Ratna Public Sector Undertaking (PSU). In this blog, we would explain to you the NSIC Registration process in India.
The NSIC has a wide network of branch offices and technical centers across the country. The corporation provide a range of services which include financial assistance, core training and development. It also offers finance, technology, marketing, and support services to all medium small scale industries. The corporation also provides machinery on lease and export marketing assistance.
NSIC has proved time by time its strength not only within the country but also in the overseas market by encouraging innovation, technology up-gradation, increasing the quality value, by establishing a link between large and medium enterprises and also by increasing the scheme of export products from small-scale enterprises.
Who requires NSIC registration?
To apply for NSIC registration, the applicant shall have to meet these necessary requirements:
- The Micro and Small Enterprise who hold valid Udyog Aadhar Memorandum or EM(Entrepreneurs Memorandum) Part-II can apply for the NSIC registration certificate.
- All the MSMEs who have started their business and have experienced commercial production but have not completed a one-year time frame can also apply. These MSMEs will be eligible for a provisional NSIC certificate with a monetary limit of Rs. 5 Lacs and the validity of the certificate is 1 year.
Functions of NSIC
- NSIC operates various schemes for MSMEs to boost their competitiveness and growth.
- NSIC provides integrated support services to MSMEs in connection to Marketing, Technology, Finance.
- NSIC offers training and skill development programs to the MSMEs in India.
Advantages of NSIC registration
NSIC provides numerous benefits to the entities registered under the Single Point Registration Scheme of NSIC and the benefits are-
Free of cost Tender allotment
Tender is issued free of cost to all the eligible MSME’s registered with NSIC.
Exemption from EMD
For the purpose of Tender, the bidder needs to pay the EMD amount but the entities registered with NSIC are exempted from paying the EMD amount.
Tender Participation Benefits
While participating in the tender, if micro and small enterprises bidding price lie within the range of L1 + 15 then they are permitted to supply a portion up to 25% of the requirement by lowering down their quotation to L1.
Procurement from MSEs
Every Department, Public sector undertaking and Central Ministries have to mandatorily need to set an annual goal of at least 25% of the total annual purchase of the products or services of MSEs. Out of this 25% of annual purchase from MSEs, 3% is kept for the entities run by Women entrepreneurs and 4% for units run by Schedule Caste/Scheduled Tribes.
SSI Sector Development
NSIC has set aside 358 items for purchase exclusively from the SSI sector in order to help them in developing their business.
Documents Required for NSIC Registration
The entities who opt for NSIC registration under Single Point Registration Scheme have to provide the following documents:
- Copy of acknowledgment of MSME/SSI Registration
- Copy of PAN, Udyog Adhaar Memorandum (self-attested)
- Ownership proof of Plant & Machinery & Tools and Raw Material showing the date of purchase & Original Purchase value of individual machinery
- Performance Statement of the application.
- Ownership documents of the premises or copy of lease deed (self-attested)
- Details of Director/Partners/Owner.
- List of technical personnel employed.
- Note on Quality control measurement adopted by the firm.
- List of Quality control equipment and testing facility.
- Copy of Latest Electricity Bill
- Audited Balance Sheet and Profit & Loss Account for the last 3 years duly signed by the authorized person.
- Statement showing the Results of Operation for the last 3 years duly signed by authorized person.
- Details of the financial status of the applicant firm by the report of Banker.
Additional Documents Required from the following:
- Duly notarized General Power of Attorney in favor of one of the Partners.
- Partnership Deed.
- Partners Detail
Limited Liability Partnership
- Copy of incorporation
- LLP Agreement
- Names of partners and changes.
- Proof of registered offices of the LLP.
- Statement of Account and Solvency
- Annual Return
- General Power of Attorney in favor of one of the designated partners.
- Certificate of Registration of Societies.
- Society’s Bye-Laws/Regulations
- Details of Member including their share-holding.
- Certificate from Registrar of Societies showing the current status of the society.
- Details of share capital.
- Details of property owned by the Society including movable and immovable.
- Copy of the Resolution of Society for seeking registration under the Government Purchase Program.
- Copy of the Resolution in favor of the Signatory of the application & documents.
- Certificate of Incorporation.
- Memorandum and Articles of Association
- Details of Directors including their shareholding.
- Copy of Board Resolution in favor of the Signatory of the application and documents
The applicant can opt for either online registration or offline registration facility as provided by the NSIC.
The following is the guideline for the Online Registration Process:
Step 1: Visit NSIC home page
Step 2: Enter your PAN card / Aadhar/GST number/UAM.
Step 3: Fill the Name of firm, application date & all other relevant details.
Step 4: After filling the online application form, the applicant will receive an email in their registered email address, regarding the contact details of the NSIC branch selected by the applicant.
Step 5: Contact the nearest NSIC branch for further formalities and documentation.
Step 6: Then the investing agency will do the proper verification of the documents provided by the applicant and after satisfaction, they will provide the SPRS Registration Certificate
The Following is the guideline for the offline registration process
The entities can submit the application form along with the applicable fee and documents to the nearest Zonal/Branch and Sub Office/Extension office of NSIC.
The validity of the NSIC Registration certificate:
The Registration Certificate as granting to the Micro & Small Enterprise under Single Point Registration Scheme (Revised), 2003 is valid only for 2(Two) Years and can be renewed after every two years but only after proper verification by NSIC.