Small Scale Industries (SSI)

Small scale industries (SSI) are related to those industries which are involved in manufacturing, providing services, productions are carried out on a small scale or micro scale. The small scale industries have a vital role in social and economic development of India. These industries carry out a one-time investment in machinery, plants, as well as industries which can be done on the basis of ownership, hire purchase or lease basis. But it doesn’t go beyond Rs. 1 Crore.

Small Scale Industries

The small scale industries include small enterprises who manufacture products or services with the assistance of comparatively smaller machines and a few labours and employees. Essentially, the enterprise should come under the guiding principle set by the Government of India. The limits are;

•    For Manufacturing Units for Goods, the investment in plant and machinery should be between 25 lakhs and 5 crores.

•    For Service Providers the investment in machinery should be between 10 lakhs and 2 crores.

Small scale industries are generally labour-intensive industries, so they generate much employment. They also support with per capita income as well as resource utilization in the economy. They are a very vital part of the economy from a financial and social viewpoint.

The examples of Small Scale Industries are;

•    Bakeries

•    Candles

•    School stationeries

•    Water bottles

•    Leather belt

•    Small toys

•    Paper Bags

•    Xerox and printing

•    T-shirt Printing

•    Photography

•    Beauty parlours

Small Scale Industries Characteristics

•    Ownership: Such units are usually under single ownership. So it is a sole proprietorship or at times a partnership.

•    Management: Both the management and the control usually is with the proprietor. So the proprietor is actively involved with the daily running of the industry.

•    Limited Reach: Small scale industries have a limited area of operations. So they meet local as well as regional demand.

•    Labor Intensive: These small scale industries incline to use labour as well as manpower for their production actions. So their dependency on technology is very much limited.

•    Flexibility: These units are more compliant towards their changing business environment. So if there are sudden changes or unexpected developments, they are adaptable enough to familiarize and keep carrying on.

•    Resources: They make use of local and readily available resources. This also assists the economy with better utilization of natural resources and less wastage.

Small scale industries Objectives

•    To generate more employment opportunities.

•    To assists in developing the rural and less developed regions of the economy.

•    To lessen regional imbalances.

•    To make certain optimum utilization of unexploited resources of the nation.

•    To increase the standard of living of people.

•    To make certain equal distribution of income and wealth.

•    To resolve the joblessness problem.

•    To achieve self-reliance.

•    To implement the latest technology intended at producing better quality products at lower expenditures.

Registration of Small scale industries

Small scale industries registration is a registration carried out by the Ministry of Micro, Small and Medium Enterprises. A business must get the SSI registration to be eligible for a number of schemes, subsidies as well as additional incentives given by the Government to such SSI’s. SSI registration could be obtained online as well.

Eligibility Criteria for Small scale industries registration

Small scale industries registration could be obtained for:

o    Manufacturing enterprise; and

o    Service enterprise

For manufacturing enterprise, in case the investment in plant and machinery (not including land and buildings) is within any of the following levels:

Micro Enterprises the investment is up to Rs.25 lakhs in plant and machinery

Small Enterprises the investment is up to Rs.5 crores in plant and machinery

Medium Enterprises the investment is up to Rs.10 crores in plant and machinery

For service enterprise, in case the investment in plant and machinery (not including land and buildings) is within any of the following levels:

Micro Enterprises the investment is up to Rs.10 lakhs in equipment

Small Enterprises the investment is up to Rs.2 crores in equipment

Medium Enterprises the investment is up to Rs.5 crores in equipment

In case the investment is completed within the above-mentioned limits then the SSI registration is required to be obtained.

Benefits of obtaining Small scale industries registration

•    There are many tax rebates given to SSI’s

•    A credit for Minimum Alternate Tax (MAT) is permitted to be carried forward for up to 15 years in place of 10 years

•    There are several government tenders which are only open towards the SSI.

•    They get easy access to credit.

•    Once registered the rate of acquiring a patent, or the rate of setting up the industry lessens as many rebates and concessions are available.

•    Businesses registered as SSI are given higher preference for government license as well as certification.

Businesses registered as Small scale industries are given higher preference for government license and certification.

•    In order to do the registration, the SSI proprietor is required to fill a single SSI online registration form. It could be done in the offline mode also.

•    If an individual wants to get registration for more than one industry then also that person could select for an individual SSI registration done.

•    To get registered an individual is required to fill a single form which is available at the website.

•    The documents needed for the SSI registration are Aadhar number, industry name, address, bank account details as well as some common information.

•    The person could also furnish self-certified certificates.

•    No registration fees are required for the registration.

•    When the SSI registration form is filled and uploaded, the person would obtain the SSI registration number soon.

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Author:

eStartIndia Team