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The first basic thing is to get your business incorporated which can be done in five ways:
One Person Company
Partnership Firm
Sole Proprietorship
Limited Liability Partnership
Private Limited Company
After this, SSI Registration or Small Scale Industry Registration is a registration from the Ministry of Micro, Small and Medium Enterprises. Once a business obtains SSI registration, the business becomes eligible for a number of schemes and subsidies promoted by the Government to boost small businesses in India.
SSI Registration or Small Scale Industry Registration or Small Business Registration are all the same as MSME Registration in India. SSI Registration is provided by the Ministry of Micro, Small and Medium Enterprises through the Directorate of Industries of the State Government.
Each of the State Government has adopted the uniform registration procedures as per the MSME guidelines. However, some States have made modifications to the procedures for obtaining SSI Registration. Therefore, the procedure for obtaining registration would vary from State to State but, many of the states have the following three steps in common while proving SSI registration.
SSI Registration Steps
Step 1: Provisional SSI Registration
To obtain SSI registration the business must first apply for Provisional SSI Registration Certificate (PRC). Provisional Registration Certificate is given when the unit is in a pre-operative period and helps the SSI unit obtain term loans and working capital from financial institutions/banks under priority sector lending. In addition to helping obtain bank loan, the provisional SSI registration certificate also helps the business obtain facilities for accommodation, land, other approvals etc. and obtain various necessary NOCs and clearances from regulatory bodies such as Pollution Control Board, Labour Regulations etc.
Provisional SSI registration can be applied for by a business at any time and industrial license is not required. Once an application is made for Provisional SSI registration, the provisional registration is provided and no field enquiry is done. Provisional SSI registrations are valid for five years and if the entrepreneur is unable to set up the unit in this period, a fresh application for provisional registration can be made at the end of five years period.
Step 2: Start the Business
Start the business with the provisional SSI registration certificate. Commence activity or production.
Step 3: Permanent SSI Registration
Once the business commences production or activity, the business can apply for and obtain permanent SSI registration. Obtaining permanent SSI registration will help the business obtain the following benefits:
Income-Tax exemption and Sales Tax exemption as per State Government Policy
Incentives and concessions in power tariff as per State Government Policy
Price and purchase preference for goods produced
Availability of raw material depending on existing policy
Permanent SSI registration will be provided only if the following conditions are satisfied by the SSI unit: i) the unit has obtained all necessary clearances whether statutory or administrative, ii) the unit does not violate any restrictions in force, iii) value of plant and machinery is within prescribed limits and iv) the unit is not owned, controlled or subsidiary of any other industrial undertaking as per notification.