Small Scale Industries ( SSI ) – Characteristics, Objectives, Registration of SSI

Small-scale industries are those industries where services are manufactured, manufactured, and rendered on a small or micro scale. These industries make one-time investments in machinery, plants and industries but they do not exceed Rs 1 Crore.

Introduction

Essentially, the small-scale industries are generally comprised of those industries which, with the aid of small machines and less manpower, manufacture, produce and render services. Such undertakings must fall under the guidelines set by the Indian Government.

The SSI's are the economic lifeline, especially in developing countries such as India. These industries are generally labour-intensive, and thus play an important role in job creation. SSIs are a vital economic field, both financially and socially, because they help with the economy's per capita income and resource use.

Small scale business examples and concepts

• Photography
• Bakeries
• School stationeries
• Water bottles
• Leather belt
• Small toys
• Paper Bags
• Art and craft
• Beauty parlours

Characteristics of SSI

• Ownership: SSI's are usually owned by a single proprietor. So it can be either a sole proprietorship, or a partnership occasionally.
• Management: The care and control are usually with the owner / owners. Therefore the owner actively engages in the day-to-day business activities.
• Labor intensive: The technology dependence of SSI is very small. Therefore they appear to use labor and energy for their manufacturing activities.
• Flexibility: SSI's are more responsive to the changing business environment. And, unlike large companies, they are versatile enough to adapt and carry on in the event of changes or unforeseen developments.
• Limited Reach: Small scale enterprises have a restricted operating area. Consequently, they may satisfy local and national demand.
• Use of resources: they use local resources that are readily accessible to help the community make good use of natural resources with minimal waste.

Role in the Indian Economy

• Job: SSI's are a major source of jobs for developing countries such as India. Owing to the limited availability of technology and resources, they prefer to employ labor and manpower for their production activities.
• Complete Production: these companies account for approximately 40 per cent of complete goods and services output in India. They are one of the key reasons for the economic growth and consolidation.
• Make in India: The best examples for the Make in India initiative are SSI's. They focus on Indian manufacturing mission and worldwide selling of the products. This helps to generate more demands from around the world, too.
• Contribution to exports: India's export industry relies heavily on these small industries for its growth and development. Nearly half of the products exported from India are produced or manufactured by those industries.
• Public welfare: These businesses have the potential to gain money and build jobs. SSI's are important also for our country's social growth and development.

Objectives of SSI

The objective of small scale industry are:

• For developing more work openings.
• To assist in the growth of the rural and less developed economic regions.
• Cutting regional imbalances.
• To ensure full use of the country's unexploited capital.
• To raise people's quality of living.
• To maintain a level playing field between income and property.
• To tackle the problem of unemployment
• To gain self-reliance.
• Adopting the latest technologies intended to deliver higher quality goods at lower prices.

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Registration of SSI

Registration with SSI is a registration issued by the MSME Ministry. A company should obtain SSI registration to be eligible for a range of programs, subsidies, and other benefits given to such SSIs by the Government. Registration with SSI can also be done online. Let's take a look at online SSI registration process:

Overview of SSI registration

SSI registration is issued by the Ministry of Micro, Small and Medium Enterprises, through the State Government's Directorate of Industries. The key rationale behind SSI registration is to create new SSI enterprises in India. SSI registration allows the company to apply for a variety of government-sponsored subsidies. SSI registration can also be accessed online.

Eligibility criteria for SSI registration

SSI registration can be obtained for: 

• Manufacturing enterprise
• Service enterprise

For manufacturing enterprises, where investment in plant and machinery (excluding land & buildings) falls under one of the following levels: 

• Micro Enterprises: Investment of up to Rs.25 lakhs in plant and machinery.
• Small Entities: Expenditure of close to Rs.5 crores on plant and machinery.
• Medium Entities: Expenditure of close to Rs.10 crores on plant and machinery.

For service companies, if the investment in plants and machinery (excluding land & buildings) falls under one of the following levels: 

• Micro Companies: Investment of up to Rs.10 lakhs in equipment. 
• Small Enterprises: Investment of up to Rs.2 crores in equipment.
• Medium Enterprises: Investment of up to Rs.5 crores in equipment If the investment falls below the aforementioned limits then the investment falls within the aforementioned limits.

Benefits of obtaining SSI registration: 

• Various tax rebates are given to SSI's.
• A Minimum Alternative Tax (MAT) credit is allowed to be carried forward for up to 15 years instead of 10 years. 
• Several government tenders are only available to SSI.
• They are getting quick access to credit.
• If the cost of securing a patent has been licensed, or the cost of developing the company falls as many rebates and discounts are available.
• Business registered as SSI is given greater priority for licensing and certification by the government.

Business registered as SSI is given greater priority for licensing and certification by the government.

• The SSI owner has to fill out a single online SSI registration form to do the registration. It can also be done in offline mode.
• If a person wants to be registered for more than one industry then he / she may also opt to have an individual SSI registration completed.
• He / she must fill out a single form which is available on the website to get licensed.
• The SSI registration documents needed are Aadhar number, industry name, address, bank account details and some common information.
• The individual may provide certificates which are self-certified here.
• Registration fees are not required to register.
• Once you have filled in and submitted the SSI registration form, you will get the SSI registration number very early.