National Small Industries Corporation (NSIC): Schemes & Benefits

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National Small Industries Corporation (NSIC)

National Small Industries Corporation (NSIC) are establishments that are set up with the objective of promoting the Micro, Small and Medium Enterprises (MSME). Some of their objectives include enhancing corporation reach that will ultimately result in the growth of its business, achieve efficiency, achieve better productivity and profitability. Utilization of enhanced skills and provide proper training to all employees keeping in mind business needs.

Before establishing NSIC, it is significant to understand that NSIC Registration is an important step that must be taken to achieve.

The NSIC has established many schemes taking the benefits of MSMEs into consideration.

  • Single Point Registration Scheme
  • Performance and Credit Rating Scheme
  • Consortia & Tender Marketing Scheme
  • Raw Material Assistance
  • National Scheduled Caste and Scheduled Tribe Hub
  • Marketing Intelligence Services
  • Infomediary Services
  • Marketing Intelligence

Single Point Registration Scheme

Benefits of Single Point Registration Scheme

  • Issuance of Tender – The tender is issued without charging any amount. Further, along with the MSMEs products.
  • EMD exemption – Businesses registered under National Small Industries Corporation (NSIC)ƒ
  • with NSIC certificates are exempted from paying Earnest Money Deposit (EMD).
  • Benefits in Tender Participation – In the case of tender participation, the Micro and Small Enterprises(MSMEs) that have a price lie within the band of L1 + 15 are allowed to supply a fraction of around 25% of the requirement by reducing their quotation to L1, where L1 stands for the non-MSEs (Micro and Small Enterprises).
  • Procurement from MSEs – The Central Ministries must set an annual aim of around 25% of the total annual purchase of the products or services produced and delivered by Micro and Small Enterprises (MSEs). Out of the 25% annual procurement from MSEs, 3% is set aside for the units owned by women entrepreneurs and 4% for units owned by Scheduled Castes and Scheduled Tribes.

Documents Required for Registration under the Single Point Registration Scheme

Certain documents are mandatory for Single Point Registration Scheme which must be arranged and submitted.

  • Copy of the entrepreneur memorandum or Udyog Aadhar memorandum
  • Pan Card Copy
  • Bankers’ report
  • Declaration by the applicant according to the prescribed format.
  • Board Resolution with the Certificate of Incorporation in case of Company
  • Proof of Ownership – Self-attested copy of Lease Deed or rent Deed for factory premises
  • A detailed list of Plant and Machinery along with the Original Value of Machinery
  • Performance Statement
  • Copy of the Electricity bill
  • Product Flow Chart
  • Details of testing equipment and facilities

Performance and Credit Rating Scheme

This scheme seeks to establish independent, trusted third party opinion on capabilities and credit-worthiness of MSEs, and makes credit available at attractive interest rates and will ensure better productivity. Under this scheme, according to the revenue of the MSE, a percent of rating agency charges are reimbursed by the Ministry of SSI.

Micro and Small Enterprises(MSEs) Reimbursement of fee through NSIC:

  • Turnover of up to Rs 50 lakhs – 75% of the fee or Rs 25,000
  • Turnover above Rs 50 to 200 lakh – 75% of the fee or Rs 30,000
  • Turnover of more than Rs 200 lakhs – 75% of the fee or Rs 40,000

Benefits of Performance and Credit Rating Scheme

  • A trusted third party opinion on capabilities and credit-worthiness of the Micro and Small Enterprises(MSE)
  • Availability of credit at good interest rates
  • Recognition in the global trade
  • Quick sanctions of Credit from Banks as well as Financial Institutions
  • Subsidized fee structure for Micro and Small Enterprises
  • Facilitates vendors in capability and capacity assessment of Micro and Small Enterprises
  • Facilitates the Micro and Small Enterprises to establish the strengths and weaknesses of their existing operations and take corrective measures.

Consortia & Tender Marketing Scheme

These schemes are defined as Consortia and Tender Marketing. Small Enterprises in their individual capacity encounter certain problems at the time of procurement and execution of large orders, which hamper and restrict their growth. This scheme is mainly utilized for effective promotion and marketing of the products.

Raw Material Assistance

Raw Material Assistance Scheme aims to help and support the MSMEs by financing the purchase of raw materials. This provides an opportunity to MSMEs to focus manufacturing products that maintain a good standard of quality.

National Scheduled Caste and Scheduled Tribe Hub 

As per this scheme, the National SC/ST Hub is an initiative of the Government of India with the objective of developing a supportive ecosystem towards SC/ST entrepreneurs and small business owners. 

Infomediary Services

The infomediary services provide information on business, technology and finance, and also display the core competence of the country’s SMEs.

Marketing Intelligence

Marketing Intelligence Cell obtains and analyzes the information to understand both existing and potential customers, determine the current and future needs and preferences, attitudes of the market and assess other changes in the business environment that might affect the size and nature of the market. This aims to promote business horizons of MSMEs of India.

National Small Industries Corporation (NSIC) Registration Process in India

  • Filing an application for NSIC Registration

The Micro and Small Enterprises must apply for the registration, either online or by visiting the NSIC office. They can apply online on the official website of National Small Industries Corporation (NSIC) or fill the application form after downloading it from the website.

  • Submission of the application to Inspecting Agency

A copy of the GP Registration application form is sent to the concerned inspecting agency with the required documents and proof of the inspection charges.

The inspecting agency then conducts technical inspection of the enterprises after they pay a certain amount as charges.

  • Issuance of SPRS Registration Certificate

After NSIC receives the inspection report, the Single Point Registration Scheme Certificate will be issued to the MSE businesses for stores.

The applicant can also download the application form and fill all the required details. After this, he must submit the application along with the documents and the required fees which, must be paid to the concerned Branch/Sub Branch or Extension office of National Small Industries Corporation (NSIC). The branch office will further send an application to the Regional Inspecting Officer accompanied by significant proofs, pay orders as well as samples. Investigation charges is paid for technical inspection at this stage. After the verification of all the documents, the application will be accepted and approved by the authority and the authority will issue the GP Registration Certificate.

Documents required for NSIC Registration in India

  • Complete details of plant & machinery including the date of purchase, the original value of the asset and other significant aspects
  • Certificate of Incorporation of the Company
  • Company’s MOA and AOA
  • Ownership Documents that must be self-attested
  • Declaration from the Director or Property owner that they are not abided by any agreement with any large scale manufacturing units
  • Banker’s Report that describes the financial status of the applicant
  • A detailed list of all the raw materials and finished goods
  • Copy of the Pan Card
  • Audited Balance Sheet, Trading Account, Profit & Loss Account
  • List of all cities or places where the services will be offered
  • Copy of Bureau of Indian Standards License
  • Copy of ISO 9000
  • Form ‘A’ obtained from the Registrar of Firms with the company partners’ names
  • Test report from Independent lab
  • Other vital documents, as demanded by the authority

Eligibility Criteria for National Small Industries Corporation (NSIC) Registration

  • All the Micro &Small Enterprises that hold Udyog Aadhaar Memorandum (UAM) can avail NSIC registration under the Single Point Registration Scheme.
  • The Micro and Small Enterprises registered with the Director of Industries or District Industries Centre
  • The provisional NSIC registration certificate can be granted to those MSEs that have started their production but have not completed one year. These certificates hold a validity of one year.
  • Traders are not eligible for registration under this Scheme.
  • A Provisional Registration Certificate must be issued to new Micro & Small Enterprises under the Single Point Registration scheme that holds a monetary limit of Rs 5 Lakhs. The validity of such certificates is for a duration of one year from the date of the issue after the payment of the registration fees.