SSI Registration

• SSI do registration with the Director of Industries of the concerned State Government

• The main purpose of Registration is to maintain statistics and maintain a roll of such units for the purposes of providing incentives and support services

Benefits of Registering

• The registration scheme has no statutory basis. Units would normally get registered to avail some benefits, incentives or support given either by the Central or State Govt.

• The regime of incentives offered by the Centre generally contains the following:

Credit prescription (Priority sector lending), differential rates of interest etc.

Excise Exemption Scheme

Exemption under Direct Tax Laws.

Statutory support such as reservation and the Interest on Delayed Payments Act.

(It is to be noted that the Banking Laws, Excise Law and the Direct Taxes Law have incorporated the word SSI in their exemption notifications. Though in many cases they may define it differently. However, generally the registration certificate issued by the registering authority is seen as proof of being SSI).

Objectives of The Registration Scheme

To enumerate and maintain a roll of small industries to which the package of incentives and support are targeted.

To provide a certificate enabling the units to avail statutory benefits mainly in terms of protection.

To serve the purpose of collection of statistics. To create nodal centres at the Centre, State and

District levels to promote SSI.

Features of The Scheme

DIC is the primary registering centre

Registration is voluntary and not compulsory.

Two types of registration is done in all States. First a provisional registration certificate is given. And

after commencement of production, a permanent registration certificate is given.

PRC is normally valid for 5 years and permanent registration is given in perpetuity.

Provisional Registration Certificate (PRC)

• This is given for the pre-operative period and enables the units to obtain the term loans and working capital from financial institutions/banks under priority sector lending. Obtain facilities for accommodation, land, other approvals etc. Obtain various necessary NOCs and clearances from regulatory bodies such as Pollution Control Board, Labour Regulations etc.

Permanent Registration Certificate

• Enables the unit to get the following incentives/concessions: - Excise exemptions - Income-Tax exemption and Sales Tax exemption as per State Govt. Policy. - Incentives and concessions in power tariff etc. - Price and purchase preference for goods produced.

- Availability of raw material depending on existing policy.

De-Registration

• A Small Scale Unit can violate the regulations in the following ways which will make it liable for de-registration: - It crosses the investment limits. - It starts manufacturing any new item or items that require an industrial license or other kind of statutory license. - It does not satisfy the condition of being owned, controlled or being a subsidiary of any other industrial undertaking.

DOCUMENTATION REQUIREMENTS PARTNERSHIP FIRM

• A copy of the Partnership Deed • Registration certificate if the firm is availing of any credit

facility / SecuredOverdraft / Temporary Overdraft facility

• PAN Card / Form No. 60 of the firm • Passport size Photograph of the authorized signatories • Identity Proof of all the authorized signatories as per List-A • Signature Proof of all the authorized signatories as per List-

B • Address Proof of all the authorized signatories as per List-C • Mailing Address of the Concern to be submitted as per List-D only if the address is different from the one

mentioned in the Partnership deed or fromthat of any of the partners who is an authorized signatory

List A - Identity Proof (Any One)

• Passport • PAN Card • Voter ID Card • Employee ID Card in case of Pvt. & Public Ltd. Cos • Defence / Govt. ID Card • Photo Credit / Debit Card • Driving License • Ration Card having customer’s photograph

List B - Signature Proof (Any One)

• Passport • PAN Card • Employee ID Card in case of Pvt. & Public Ltd. Cos • Defence / Govt. ID Card • Photo Credit / Debit Card • Crossed Self Cheque • Driving License • Ration Card having customer’s signature

List C - Address Proof (Any One)

• Passport • Voter ID Card • Ration Card • Bank A/c. / Latest Credit Card Statement (not more than 3 months

old) • Employer’s Letter in case of Pvt. & Public Ltd. Cos. • Electricity / Telephone / Mobile Bill (not more than 3 months old) • Life Insurance Policy / Premium Receipts • House Lease Agreement • RC Book (Vehicle Registration Book) • Cooking Gas Consumer Book • House Sale Agreement

List D-Document pertaining to the Proprietary / Partnership Firm (Any One)

• Shop and Establishment Certificate / Municipal License • Sales Tax Returns / Registration Certificate / Profession

Tax Regn. Certificate • Existing Bank Account Statement with account opening

amount cheque from the same account • License to Carry on Business from Registered Authority

E.G.: Chemists-FDA • Certificate of Practice Issued by Institute of Chartered

Accountants of India / Institute of Cost Accountants of India / Company Secretary of India / Medical Council

• Chartered Accountant’s Certificate.

• The Memorandum of Association• The Articles Of Association• An agreement, if any, which the company

proposes to enter into with any individual for appointment as its managing director or whole-time director or manager.

• A statutory declaration in Form 1 by an advocate, attorney or pleader entitled to appear before the High Court or a company secretary or Chartered Accountant in whole-time practice in India who is engaged in the formation of the company or by a person who is named as a director or manager or secretary of the company that the requirements of the Companies Act

• Written consent of directors in Form 29 to agree to act as directors

• The complete address of the registered office of the company in Form 18

• Details of the directors, managing director and manager of the company in Form 32.

• On obtaining the incorporation certificate, a “Private Company” is eligible to transact business. The private company is now incorporated.

• A “Public Company”, however cannot transact business unless it obtains a ‘trading certificate'

• Public companies, generally wish to transact business by raising capital from the general public. The process of raising capital from the public is carried out in this stage.

• For the purpose of raising capital from the public, the company needs to prepare and issue a document known as ‘prospectus’. Public companies that are confident of raising capital on their own need to prepare a document known as ‘statement in lieu of prospectus’.

• In this stage, a draft of the prospectus is finalized. Copies of the prospectus are printed. A copy of the prospectus, duly signed by minimum 2 directors and countersigned by the secretary is filed with the ROC.

• Thereafter the Prospectus is issued to the public. Advertisement of issue of the prospectus is usually carried out in newspapers. The public need to pay a nominal application fee and subscribe to the capital of the company within a specified period.

• Application to Stock exchange:An application must be sent to the regional stock exchange for getting the name of the company listed.

• Opening of bank account:The company must open its bank account for receiving of application money.

• Appointment of experts:The company must appoint it’s brokers, solicitors and auditors of the company.

• Expert opinion:An expert’s opinion regarding the bright prospects of the company is usually written in the prospectus. Experts are usually, accountants, values, solicitors etc.

• There are certain guidelines given by SEBI (security exchange board of India) regarding listing of the company on Stock exchange and issue of capital. These need to be followed; otherwise SEBI does not let the company be listed.