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NSIC Registration – Charges and Procedure

NSIC or national small industrial corporation is the government of India enterprise under the Ministry of MSME. It helps promote, support, and foster the growth of MSME businesses in India by operating various schemes like Single point registration of government purchase marketing support performance and credit rating scheme for small industries and more. In this article, we review the procedure for obtaining the registration in India along with the charges.

About the NSIC –

The Government is the single largest buyer of a different type of goods. With a view to boosting the share of purchases from the small-scale sector, “the Government Stores Purchase Program” was launched in 1955-56. NSIC registers Micro & Small Enterprises (MSEs) under Single Point Registration scheme (SPRS) for contribution in Government Purchases.

• NSIC Registration is required to be renewed every two years

• The National Small Industries Corporation (NSIC) enrolls small scale units as capable to undertake supply of various items to the Government.

The registered units are extended numerous services so as to promote their participation, and consequently increase the share in Government purchases.

The reason behind this Scheme is to avoid multiplicity of registration with various Government agencies and to ensure that the units registered with NSIC are considered at par with those registered directly with the purchasing agency.

 

Benefits of NSIC Registration

The businesses registered under Single Point Registration Scheme (SPRS) of NSIC are eligible to get the benefits under “Public Procurement Policy for Micro & Small Enterprises (MSEs) Order 2012” as notified by the Government of India, Ministry of Micro, Small & Medium Enterprises(MSMEs), New Delhi vide Gazette Notification dated 23.03.2012.

• Issue of the Tender Sets free of cost

• Exemption from payment of Earnest Money Deposit (EMD)

• In tender participating MSEs quoting price within the price band of L1+15% shall also be allowed to supply a portion up to 20% of the requirement by bringing down their price to L1 Price where L1 is non-MSMEs.

• Every Central Ministries/Departments/PSUs shall set an annual goal of a minimum of 20% of the total annual purchases of the products or services produced or rendered by MSMEs. Out of annual requirement of 20% procurement from MSEs, 4% is earmarked for units owned by Schedule Caste /Schedule Tribes (as per PPP Order dated 23.03.2012 overall procurement goal shall be mandatory w.e.f. 01/04/2015)

• In addition to the above, 358 items are also reserved for exclusive purchase from SSI Sector.

Eligibility Criteria

• All Manufacturing/Service enterprises having Acknowledgement of Entrepreneurs Memorandum (MSME) or Udhyog Aadhar are eligible for registration with NSIC under its Single Point Registration Scheme (SPRS).
• MSEs who have already commenced their commercial production but not completed one year of existence. The Provisional Registration Certificate can be issued to such MSMEs under the Single Point Registration scheme (SPRS) with a monitory limit of Rs. 5 Lacs which will be valid for one year only from the date of issue after levying the registration fee and obtaining the requisite documents.

How to make the Application –

MSEs will have to apply either online on our website www.nsicspronline.com or the prescribed application form in Duplicate and to be submitted to the concerned Zonal/Branch Office of NSIC located nearest to the business. In case of any difficulty in filling the application form and completing the documentation, they can consult any of the Zonal/ Branch offices of NSIC. The application form containing Terms & conditions are available without any fees from all offices of the NSIC.

Registration Fee

The registration fee is based on the Net Turnover as per the latest audited Balance Sheet of the MSEs for the Registration, Renewal, and any other amendment, etc. The Fee structure is indicated in the table as below:

S.No. Category (Net Turnover Based) Fee
1 Fee for Fresh Registration of Micro & Small Enterprises: Turnover up-to Rs. 100 lakh:
Turnover up-to Rs. 100 lakh For Micro Enterprises: Rs.3000/-
For Small Enterprises: Rs.5000/-
Turnover exceeding Rs. 100 lakh Turnover exceeding Rs. 100 lakh
For Micro Enterprises: Rs.3000/- plus Rs. 1500/- for every additional turnover of Rs. 100 Lakh
For Small Enterprises: Rs. 5000/- plus Rs. 2000/- for every additional turnover of Rs. 100 Lakh
With a cap of Rs. 1 lac for all categories.
2 a. Fee for issuance of amendments in stores (Qualitative & Quantity); Fee for issuance of change in monetary limit or any other amendment in the certificate, and 50% of the charges proposed at I Enterprises respectively with a cap of Rs. 50,000/-
b. Fee for issuance of Renewal of G.P. Registration (Every Two Years)
3 Concessions
a) Micro & Small Enterprises owned by the SC/ST (Definition of SC/ST MSE and eligibility for benefits under NSSH has been explained in Circular No. SIC/HO/NSSH/Scheme/2016-17 dated 09.09.2016) a) As per the approved scheme of National SC/ST Hub (Circular no. SIC/HO/NSSH/Schemes/2016-17 dated 09.09.2016) in NSIC, the SC/ST units shall be eligible for upfront 100% subsidy on the fee of NSIC for fresh registration/renewal/amendments/competency certificate and also the inspection fees of the impaneled Inspection Agencies/NSIC including Service Tax applicable. The SSPRS shall be run as a pilot project charging a nominal fee of Rs. 100 per unit during this F.Y. 2016-17 and further continuation of the same shall be subject to review
b) MSEs other than SC/ST located in the entire North Eastern Region b) The units located in North Eastern Region other than SC/ST will be given 20% concession in fee (no change in the fee being collected by BOs for Technical Inspections of MSEs)

 

The Registration Fee as mentioned in the table above is exclusive of the Inspection charges as levied by the inspecting agency. Such charges as decided by the Inspecting Agency are borne by the unit. Till such time the Inspecting Agency makes any amendments in their charges, the present Inspection fee of Inspecting Agencies is as under:-

A. Inspection Fees for MSME-DI

S. No. Class of Enterprise Inspection Fees for MSME-DI
1 Micro Enterprises Rs. 2000
2 Small Enterprises Rs. 3000

 

B. The Professional fee payable by MSEs to M/s RITES Ltd., and M/s Consultancy Development Centre for undertaking physical inspection will be as under:-

By RITES and CDC Rs. 6000/- (Inclusive of Taxes and Travel Expense) for Micro Enterprises, and
Rs. 8000/- (Inclusive of Taxes and Travel Expense) for Small Enterprises.
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TaxClue Teamhttp://taxclue.in
Taxclue is an online news portal for reporting all news, articles, judgments, Circulars, orders, and notifications relating to various corporate and tax laws in India. We use the tagline ‘Simplifying Laws’. Our mission is to Simplify the Laws and make people aware of their rights and duties in relation to tax matters in order to equip them to participate in nation-building.

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