SSI stands for Small Scale Industries. A small scale industry (SSI) is an industrial undertaking in which the investment in fixed assets in plant & machinery, whether held on ownership term or on lease or hire purchase, does not exceed Rs. 1Crore. However, this investment limit is varied by the Government from time to time. Objectives of the Registration Scheme

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

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

iii. To serve the purpose of collection of statistics.

iv. To create nodal centres at the Centre, State and District levels to promote SSI.

Features of the Scheme

i. Registration is voluntary and not compulsory.

ii. 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.

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


Registration of a small scale unit is not compulsory. But, its registration with the State Directorate or Commissioner of Industries or DIC’s makes the unit eligible for availing different types of Government assistance like financial assistance from the Department of Industries, medium and long term loans from State Financial Corporations and other commercial banks, machinery on hire-purchase basis from the National Small Industries Corporation etc.

Benefits under the Small Scale Industries Schemes:-

Since the company is registered as a SSI, it avails the following benefits:-

1. Cheap Bank Finance

2. Under the government’s Focus Scheme, the company is funded by 50% for buying the machines.

3. Duty Drawbacks

4. Exempt from Sales Tax

5.Exempt from Excise Duty

6. Its even easier to get licenses and permissions

7. credit guarantee scheme

8. priority sector lending

9. capital subsidy

10. reduced customs duty

11. power tariff subsidies

12. ISO-9000 Certification reimbursement

13. Exemptions under tax laws etc.

14. and several other benefits provided by the State Government

The registration certificate so issued by the concerned authority is seen as a proof of the unit being a small scale unit. It enables the unit to get several concessions like :-

  • Income tax exemption and Sales tax exemption as per the State Government policy.
  • Incentives and concessions in power tariff, etc.
  • Price and purchase preference for goods produced.
  • Availability of raw material depending on existing policy.


PROVISIONAL REGISTRATION: A small scale unit is generally subjected to two types of registration. Initially, a provisional registration is granted for the proposed enterprise. It is termed provisional because the enterprise is yet to come into existence. It is granted for a specified period of time during which the unit is expected to be setup.

A ‘Provisional Registration Certificate (PRC)’ enables the unit to obtain :-

(i) term loans and working capital from financial institutions, banks under priority sector lending;

(ii) facilities for accommodation, land and other approvals;

(iii) no objection certificates (NOCs) and clearances from regulatory bodies such as pollution control board, labour regulations, etc.

Though, provisional registration is not compulsory for getting a permanent registration. But, a provisional certificate enables the unit to apply to the various departments and agencies for assistance in setting up of the enterprise.

PERMANENT REGISTRATION: Once the unit has commenced commercial production, it is granted permanent registration. It is a life time registration given after physical inspection of the enterprise and scrutiny of certain documents.


The State Directorate or Commissioner of Industries or District Industries Centres (DIC’s) are the concerned authorities for registration of small scale units. This registration is both location specific and product specific. Like in certain State capitals and metropolitan cities, it is granted to only those units which are located in the designated industrial areas/estates.

Such a registration procedures is generally uniform across the States. However, there may be some modifications done by individual States.


1. Form Part I to be filled in by the applicant in detail which include, name of Proprietor, Name of Firm, Location of Firm, Communication Address, Main Item to be Manufactured/, Total Investment, Total Value of Plant and Machinery to be installed etc.

2. Self Attested PAN Card copy of the Proprietor/ Partners/ Directors

3. Self Attested Address Proof of the Proprietor/ Partners/ Directors

4. PAN Card Copy of the Partnership Firm/ Company

5. Partnership Deed/ MOA-AOA of the Company

6. Proof of Land i.e. Rent Deed in case the land is taken on rent and Lease Deed, if it is owned by the Proprietor or any Partner


Some of the formalities required to be completed for seeking permanent registration are :-

  • Form Part II to be filled in by the applicant in detail
  • Clearance from the municipal corporation
  • State pollution control board clearance
  • Sanction from the electricity board
  • Ownership/tenancy rights of the premises where unit is located
  • Copy of partnership deed/Memorandum of articles of association in case of a private limited company
  • Sale bill of product manufactured
  • Sale bill of each end product
  • Purchase bill of each raw material
  • Purchase bill of machinery installed
  • BIS/QC certificate if applicable
  • An affidavit giving status of the unit, machinery installed, power requirement, etc.

Whatever be the registration scheme, the main purpose is to maintain statistics and a roll of such units for providing incentives as well as to create nodal centres at the Centre, State and District levels to promote SSIs. It gives recognition to the industrial unit and helps in generating a database for policy planning.

Taxation Provisions relating to Small Scale Industries

In a developing country like India, Small Scale Industries play a significant role in economic development of the country. They are a vital segment of Indian economy in terms of their contribution towards country’s industrial production, exports, employment and creation of an entrepreneurial base. These industries by and large represent a stage in economic transition from traditional to modern technology. Small industry plays a very important role in widening the base of entrepreneurship. The development of small industries offers an easy and effective means of achieving broad based ownership of industry, the diffusion of enterprise and initiative in the industrial field.

Given their importance, the Government policy framework right from the First plan has highlighted the need for the development of SSI sector keeping in view its strategic importance in the overall economic development of India. Accordingly, the policy support from the Government towards Small Scale Industries has tended to be conducive and favourable to the development of small entrepreneurial class. Government accords the highest preference to development of SSI by framing and implementing suitable policies and promotional schemes.


A Small Scale Unit can violate the regulations in the following ways which will make it liable for de-registration:

i. It crosses the investment limits.

ii. It starts manufacturing any new item or items that require an industrial license or other kind of statutory license.

iii. It does not satisfy the condition of being owned, controlled or being a subsidiary of any other industrial undertaking.


CS Mohit Saluja

Practicing Whole Time Company Secretary

2nd Floor, Malhotra Complex, Sehdev Market,

Jalandhar, Punjab-144001

Ph. No. 9914558709

Email id:[email protected]

Author Bio

Qualification: CS
Company: Mohit Saluja & Associates
Location: JALANDHAR, Punjab, IN
Member Since: 13 May 2017 | Total Posts: 64
Hi, This is CS Mohit Saluja, Graduate in Law and Post Graduate in Commerce & a Fellow member of the Institute of Company Secretaries of India, New Delhi, having more than 10 years of stringent experience in the field of Secretarial and RBI Matters, Company Law Board (CLB), Regional Director (RD) View Full Profile

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  1. yuvraj singh says:

    helo sir i m Yuvraj singh from Pathankot.i don’t want do job in any private company, i m fully dedicated to start my own business or small scale industry with investment about 15 to 20 lac. Sir, please give me the best suggestion about this and which kind of business should be started.

  2. Dr.Vipin says:

    respected sir
    am planning of starting a small scale manufacturing unit of distilled/aromatic water for the first time. kindly provide the details where to approach and how.

  3. Prakash Sahni says:

    i’m running an institution & i want to do in proper registered so how can i apply online for SSI certificate. But i could not find online application form. So plz what can i do for this SSI registration.
    prakash sahni

  4. Neeraj Tankan says:

    I have completed my from mechanical stream in 2012 & I have 3.5 years exp. in Fabrication of steel Structure so further i don’t want do job in private Sector, i want to start my own business in fabrication & Contracting with investment about 20 lacs, plz give me the best suggestion for registration.

  5. Rajinder says:

    helo sir i m rajinder singh from sangrur distt, i m just complete my mtech in ece, i don’t want do job in any private company, i m fully dedicated to start my own business or small scale industry with investment about 15 to 30 lac, plz sir give me the best suggestion about this and which kind of business should be started

  6. sandip patel says:

    i want to apply online for SSI certificate. But i could not find online application form. So plz what can i do for this SSI registration.

  7. Pradeep Agarwal says:

    Dear Sir
    i am a Business owner and have established my firm in 2001 and now i want to increase business with SSI as my business is of computer hardware and want to develop with new products and i would like to know the procedure for registering for SSI as my turnover is 1.26 Crore in last financial year 14-15 how can i proceed and will it help me in going for it. please do reply

  8. Nagesh Sutar says:

    Dear Sir, I have completed my M.Sc in Chemistry I have 8 years of Chemical industry Experience along with R&D and production , so i want to start small scla industry , so ineed guidline how to start my bussness with the first step procedure for documentation

  9. Rajesh Gautam says:

    Dear sir .we want to set up a small scale machine tool industry in focal point vill. ajnali mandigobindgarh .please sugestm me any type of loan under subsidy and other benefits as out other states .industry in punjab is difficult time

  10. surinder singh says:

    I m ex servicemen. What should I do for open a small scale industries amounting rs 5 to 10 lakh. Is there necessary for registration. Any relexations for ex-servicemen from govt to setup the business. Is ISO certificate necessary for the industries of amounting rs 5 to 10 lakh. Plz inform me.

  11. Eco Polymers says:

    I want to establish a new Small Scale Industry for Pet Bottle Blowing in rural area of Bathinda Distt. Please tell me about the subsidy that I can avail from Khadi Gram Udyog or any other agency.The limit for Khadi Gram subsidy already was for Rs.25 Lac on machinery and plant, now it has been increased or not.
    Thanking You

    Prop. Eco Polymers

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