Small scale industries, or SSIs, are known as an economy’s lifeblood. For a country like India, it is incredibly significant. Even though it is a labour-intensive sector, it nevertheless requires a tiny amount of capital.
On the other hand, small-scale industries export almost half of the products from a developing country like India (45-55 percent). Some small-scale industries emerge as a result of multinational corporations’ demand for vendors.
The company must follow the rules set forth by the Indian government for PMRY scheme eligibility. Small-scale industries, after all, are critical to the economy’s financial and social wellbeing.
Three categories of small scale industries
- Manufacturing Industries: Power looms, engineering industries, food processing, and other small-scale manufacturing businesses are examples. Individuals typically own these types of small-scale businesses. They make completed commodities that are either consumed or utilized in the processing industry.
- Ancillary Industries: Companies that manufacture machines for large corporations or medium-sized businesses are considered ancillary industries. They usually don’t make all of the parts themselves.
- Service Industries: The category of service industries includes repair shops and maintenance businesses.
Objectives of small scale industries
- Increase the number of jobs available.
- Develop the economy’s rural and underdeveloped areas.
- Reduce regional inequality.
- Optimal usage of the country’s untapped resources
- They should improve people’s living standards.
- Income and riches get distributed equally.
- Solve the problem of unemployment.
- Utilize cutting-edge technologies to produce higher-quality items at cheaper rates.
Registration for small scale industries
The registration process for Small Scale Industries is facilitated by the Ministry of Micro, Small, and Medium Enterprises (MSMEs) with the support of the Ministry of Small Scale Industries.
SSI registration is required to take advantage of a variety of government programs, subsidies, and incentives.
The applicant can fill out and upload an SSI registration online form to obtain a registration number. MSMEs get divided into two groups with the PMRY scheme, according to the Ministry of Micro, Small, and Medium Enterprise Development (MSMED) Act of 2006.
- Step 1: Fill the registration form by entering all essential information and following the directions on the home page to finish the application.
- Step 2: Once you’ve completed the form, click ‘Validate and Pay’ to submit it and pay the registration price.
- Step 3: After submitting your payment and completing the form, an executive will review your application.
- Step 4: Once your application has been granted, you will receive an email with your SSI registration certificate.
You can also get the registration done through the Udyog Aadhar scheme by filling out an online registration form. You will not have to pay for SSI registration, and you do not have to pay for processing.
After the executives have verified the documents and processed them, authorities will send the certificate to your registered email address. Contact information, bank account information, GST registration, other business information, employee information, and investment information are all required fields on the registration form.
You may also be required to submit a scanned copy of any documents that need an Aadhar card. The government of India has made it very easy to register micro and small-scale industries through several initiatives.
Benefits of SSI registration
After SSI registration, banks and financial institutions provide loans for the firm, and it becomes hassle-free. Once you’ve made your reservation, you’ll be able to get a tax refund.
It is now necessary to register to participate in government bids. It becomes smoother due to the numerous concessions and reductions provided, and the cost of establishing the industry decreases.
- Low or deductibility interest rate loans
- After SSI registration, SSIs become eligible for a variety of tax breaks.
- Minimum Alternate Tax (MAT) credit can be carried forward for up to 15 years for SSI units.
- Entry to specific government tenders restricted to SSIs
- Once a team has permanent registration, obtaining government permits and certificates becomes much more accessible.
- Because there are so many reductions and rebates available, the cost of starting a business is lower.
Features of small scale industries
- Ownership: Small-scale manufacturing businesses are often run by a sole proprietorship or, if necessary, a partnership of a few people.
- Control: The industry is under the owner’s supervision, resulting in the owner’s direct engagement in ordinary company activities.
- Intensive labour: In SSI, technology is on a small scale. Work is used extensively in the industrial process.
- Short-range: The small-scale manufacturing industry does not operate on a considerable scale. As a result, they can only meet regional demand.
- Flexibility: Because the units are relatively modest in size, they can more easily adapt to the changing environment.
- Resources: Small Scale Industries located in areas where resources are readily available. It saves the producer money on travel and makes effective utilization of resources.
Who administers small-scale industries?
There are government agencies dedicated to the welfare of small-scale industry members. Small-scale industries get promoted by policies, initiatives, and programs developed by the Ministry of Small-Scale Industries.
In rural and urban areas, the Ministry of Agriculture and Rural Industries coordinates and assists in developing villages and khadi industries and micro and tiny industries.
Role of small scale industries in India
Employment They rely primarily on labour and people to carry out their production activities due to a lack of technology and resources.
- Make in India
The most powerful manifestations of the Make in India idea are SSIs. They intend to manufacture in India and sell their items all over the world. It also aids in the expansion of worldwide demand.
- The public’s well being
These industries are vital for our country’s social growth and development, aside from economic considerations. People usually start these businesses from the lower or middle classes. They can gain fortune while also employing others. It aids in the distribution of goods and the advancement of technology.
Ziploan aims to provide resources for small-scale companies under MSME registration. Funding often becomes an issue for such companies, and for this, Ziploan offers loans up to 7.5 lakhs even with a poor credit score!
Frequently Asked Questions
Small Scale Industries (SSI) are those industries in which the manufacturing, production and rendering of services are done on a small or micro scale.
1) Introduction of SSI
3) School stationeries.
4) Water bottles.
5) Leather belt.
6) Small toys.
7) Paper Bags.
9) Beauty parlours.
Small scale industries (SSI) are those industries in which manufacturing, providing services, productions are done on a small scale or micro scale.
A small scale industrial enterprise should have an investment of more than 25 lakhs and less than 10 crore in plant and machinery in the case of manufacturing units.
Some examples of small scale industries are: Agarbatti making, Chalk making, Biodiesel production, Sugar candy manufacturing, Wood making, Rice mill, Potato chips making, Toys making, Microbrewery, Liquid soap making, Honey processing, Slippers making, Detergent powder making, Fruit juice production plant, etc.
To encourage new and existing business, the government of India has launched many schemes to help small and medium scale businesses to sustain and grow. To avail of all these beneficial schemes, you need to get your MSME registration done. MSME registration is also known as Udyog Aadhaar or SSI registration.