Overview of NSIC Registration
The main reason behind the formation of NSIC was to foster growth in MSME sector. The term “NSIC” stands for the National Small Industries Corporation. It aims to register MSMEs under the Single Point Registration Scheme for participating in Government purchases.
Further, the MSMEs which are having NSIC Registration are eligible to participate in numerous developmental schemes implemented by the government and can acquire tremendous growth and boost in their business as well.
The term “developmental schemes” include Single Point Registration Scheme, Tender Marketing Scheme, Performance and Credit Rating Scheme, etc.
Concept of National Small Industries Corporation
In India, the concept of NSIC was introduced by the government in the year 1955. It is a Mini Ratna Public Sector and works to boost the Indian MSME sector. Also, it falls under the jurisdiction of the Ministry of Information Technology.
Further, NSIC offers several developmental schemes to the MSME sector and set up numerous Training cum Incubation Centres. These centres are controlled and managed by professional manpower.
Benefits of NSIC Registration
The key benefits of NSIC Registration are as follows:
- It facilitates the participation of MSMEs in several International Fairs;
- It facilitates the participation of MSMEs in several Tech mart Exhibitions and assists them in getting familiar with the modern, upgraded, and advanced technologies;
- SMEs also get an opportunity to take part in Buyer-seller meet with various associations and government;
- It assists the MSME sector in developing skills by providing them with several developmental trainings;
- It provides SSIs computer-aided designing products;
- The MSMEs that are having NSIC Registration have the opportunity to boost and increase the range of their products;
- It assists SSIs in reaching the International Markets;
- The MSMEs that are having NSIC Registration are exempt from the instalment of Earnest Money Deposit;
Who can Obtain Registration under NSIC?
The entities qualified to obtain Registration under NSIC are as follows:
- Any MSME that has a valid Udyog Aadhar;
- The MSMEs that have commenced their production, but are not having the Balance Sheet for last 1 year can apply for Provisional Registration under NSIC with a validity of 1 year;
Schemes under NSIC
The schemes offered by NSIC to the MSME sector are as follows:
Single Point Registration Scheme
The objective behind the enforcement of this scheme was to boost the level of government purchases from SSIs. The MSMEs that hold registered under this scheme stands exempt from the EMD in government purchases. Also, the single point registration scheme was launched in the year 1955-1956.
Performance and Credit Rating Scheme
PCRS aims at establishing trusted and Independent Third-party Opinions concerning the Credit-worthiness and Competence of Micro and Small Enterprises.
It ensures the availability of credit at low-interest rates and confirms better productivity as well. Also, it shall be relevant to state that the Ministry of SSI reimburses the fee charged by CRA (Credit Rating Agency) on the basis of the Annual Turnover of MSEs.
Bill Discounting Scheme
As per this scheme, the invoices are generated out of a genuine trade transaction, i.e., the supply of goods made by MSMEs to a well-known State and Central Government Department; Undertakings engaged in Manufacturing or Service Activities.; and Private and Public Limited Company. However, it will be pertinent to note that Traders are not covered under this scheme.
Raw Material Assistance Scheme
This NSIC schemes purposes to offer support to the MSME industry by funding their Raw Material Purchase for both Indigenous and Imported Products.
Also, this scheme provides an opportunity for MSMEs to stress on manufacturing or producing superior and quality products.
MSME Global Mart
This particular scheme is a Business to Business (B2B) portal and was initiated with the motive to offer business, technology, and financial support to MSMEs at affordable rates.
Further, it shall be pertinent to specify that the enterprises which are having an Annual Membership are only eligible to benefit from this scheme.
Skill and Development
All the MSMEs that have obtained NSIC Registration are offered technical support and various level skill development training. Further, these skill development training are offered at the NSIC Technical Services Centres (NTSC).
Apart from this, it has several other LBIs (Livelihood Incubation Centres) and Training Incubations spread across the country.
Consortia and Tender Marketing Scheme
The only object of this particular scheme is to promote and boost the products or goods manufactured and produced by MSMEs. Further, these goods can be promoted and endorsed either individually or collectively through “Consortium”.
Marketing Intelligence Services
This scheme aims to provide business growth to the Indian MSME sector through a Marketing Intelligence Web Portal.
This portal gathers and analyses the data provided to determine the prospective client; current and future needs and preferences; attitudes; and behaviour of the market.
Moreover, through this scheme, the government visions to evaluate the changes happening in the market and to find chances of opportunities and threats in the market.
The main objective behind the implementation of this scheme is to offer the required set of skills for setting-up businesses in India. Further, it aims to facilitate market connections available to budding entrepreneurs.
Also, it shall be relevant to state that for ensuring self-sustainability, this scheme offers hand-holding for a critical time as well.
Documents Needed for NSIC Registration
The documents needed for NSIC Registration are as follows:
- Udyog Aadhaar Memorandum (UAM) Number;
- Details concerning the plant and machinery installed, such as Date of Purchase, Value of the Asset, and Rate of Depreciation charged;
- In case of a company, a copy of the Certificate of Incorporation;
- In case of Partnership Firm, Form A granted by the ROF (Registrar of Firms);
- In case of an LLP, a copy of the LLP Agreement;
- A copy of MOA and AOA;
- Self-attested documents proving the ownership of the place used as a registered office;
- A Declaration from directors concerning the Non-connection with any big venture;
- Bank Reports describing the financial status of the applicant;
- A list of the in-process goods, finished goods, and raw materials;
- PAN Card of the company;
- Audited Financial Statements of the preceding fiscal year;
- BIS Certification, if in case applicable;
- ISO 9000 (Optional requirement);
- Details concerning the installation of quality control machinery in the factory;
- Details of the manpower employed; however, it does not include technicians;
- Copy of the latest electricity, or water tax bill of the premise being used for the business;
Online Procedure for NSIC Registration
The steps involved in the online procedure for NSIC Registration are as follows:
- Visit the NSIC official Website at http://www.nsicspronline.com/home.aspx;
- Select the option “Apply Online” specified on the left side;
- The concerned applicant now needs to furnish all the information asked in the application form for NSIC Registration;
- Now, press the option “save” and proceed;
- After that, pay the fees prescribed for obtaining Registration under NSIC;
- Next, the applicant needs to upload the scanned copy of all the needed documents and endorsements;
- Lastly, click the “submit” button for successfully submitting the registration form;
Validity of NSIC Registration
The Certificate of Registration is valid for 2 years, stating from the date of registration. Also, the same will be reviewed and rechecked by the authorities in every 2 years.
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Frequently Asked Questions
An MSME needs to apply for the Renewal of NSIC Registration in every 2 years.
The Ministry of Information and Technology deals with NSIC.