Updated : April 04, 2024Benefits Provided by Central Government for SSI Registration
Overview : SSI Registration in India abbreviated for small scale industry registration is an optional registration provided by the Ministry of Micro, Small and Medium Enterprises (MSME) through the State Government Directorate of Industries in order to promote small businesses in India.
Though optional, it is strongly recommended to small scale businesses to obtain SSI registration so that the business can enjoy a host of benefits in the form of schemes and subsidies, support, incentives provided by either State or Central Government.
List of Benefits Provided by Central Government for SSI Registration
- Priority sector lending in Banks
- Excise exemption scheme
- Reduction in bank loan interest rate
- Statutory support such as reservation
- Exemption under direct tax laws
- Interest on Delayed Payments Act
Aims and Objectives of SSI Registration
- SSI Registration aims to maintain the roll of small scale industries.
- It aims to offer statutory benefits in terms of protection to the industrial units by providing them a relevant certificate
- Apart from creating nodal centres at the District, State and Centre levels to promote SSI, it also aims to collect accurate statistics.
Small Scale Industries
Provisional Registration
There are two specific stages under which a small scale industry can be registered namely Provisional Registration and Permanent Registration. As some significant steps are to be taken in order to apply for land, financial credit, power and water connections etc during the pre-investment period, Provisional registration helps the unit by enabling it to take required steps associated with this phase.
Permanent Registration
On the other side, permanent or final registration helps the provisionally registered industrial units at the time of production. Any functional industrial unit can apply for Permanent or Final Registration. Moreover, the industrial units do not have to undergo the provisional registration processes in order to apply for permanent registration.
