Introduction: Government of India offers monetary and other benefits to the In-house R & D units of corporate houses through various ministries and departments. One stop registration with Department of Scientific and Industrial Research (DISR) enables the applicant corporate R & D units to avail benefits in form of loan at very low interest loan, grants and equity support even up to 100% of project costs. In this article, let us explore various nuances of registration.
1. Why to register with DSIR: Registration with and Recognition by DSIR is the only scheme in entire governmental set up which enables the corporate R & D units for receiving funds, grants and equity support from the following governmental departments:
- Department of Science and Technology
- Department of Biotechnology
- Department of Electronics and Information Technology
- Ministry of Environment, Forest and Climate Change
- Ministry of New and Renewable Energy
- Ministry of Food Processing Industries
- Council of Scientific and Industrial Research
- Indian Council of Medical Research
- Indian Agricultural Research Institute
- Technology Development Board (Dept of Sc and Technology)
DSIR registration enhances intellectual and technological prestige of your organisation.
2. Coverage of Research and Development Activities: R & D unit must be engaged in same line of business as that of the corporate of which it is a part. It must be engaged in
- Development of new technologies, design and engineering
- Process/product and design improvements,
- Developing new method of analysis and testing
- Research for increased efficiency in use of resources such as capital equipments, materials and energy
- Pollution control, effluent treatment and recycling of waste s products
- Any other areas of research.
3. Exclusion from Research and Development Activities: Following activities are not considered R and D activities:
- Market Research
- Work and Method study
- Operations and management research
- Testing and analysis of routine nature
- Process control, quality control and maintenance of day to day production
- Maintenance of plant.
4. Registration and Recognition: DSIR registers and recognizes the Research and Development Units of manufacturing corporate houses. The process can be initiated with checking of eligibility, compliances and submitting of application along with documents.
(a) Eligibility Criteria for Corporate R & D units
- The Applicant must register under the Companies Act, 1956 or 2013, with at least three financial years completed.
- Regular income for the last two years.
- Engaged in manufacturing, production, or technical services.
- Contract research companies eligible with independent R&D infrastructure.
- R&D unit must be on authorized, non-residential premises.
- Minimum area of 1000 sq. ft. for R&D with qualified staff.
- Functional R&D unit with defined, time-bound innovative projects.
(b) Other criteria for recognition
- Long-term R&D Policy: Must have a clear, long-term R&D policy displayed in the R&D unit.
- Separation from Routine Activities: R&D must be distinct from production and quality control, with separate infrastructure.
- Location: Preferably outside factory premises; if within, in a separate building, floor, or room for small companies.
- Defined R&D Programs: R&D activities should be time-bound, with proper documentation.
- Qualified R&D Staff: Must have dedicated R&D staff led by a qualified person with access to the CEO or Board.
- Separate Accounting: Maintain separate books for R&D expenses, recorded when incurred.
- Financial Reporting: R&D expenses must be clearly outlined in the Annual Report and should align with the company’s financial scale.
5. Documents Required
- Signed e-application (.pdf) by MD/Whole-time Director.
- Walk-in CD with corporate and R&D presentations.
- Latest annual report.
- Note on R&D activities, including ongoing, proposed, and completed projects.
- Write-up on major achievements and future projects.
- Details of scientific personnel with qualifications and designations.
- Research infrastructure details, including installation dates and facility values.
- Layout drawing of R&D unit and plant/production unit.
- Memorandum & Articles of Association (for newly formed companies).
In case you are having a manufacturing company with Research and Development Unit, you may wish to avail various benefits of DSIR Recognition of your unit. In case of any support or query, you may like to connect with us.
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Abhinarayan Mishra FCA, FCS, LL. B, IP, RV, SA; Partner, KPAM & Associates, Chartered Accountants, Dwarka, New Delhi; +91 9910744992; [email protected]; [email protected]
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