NSIC stands for National Small Industries Corporation Limited, operating under Micro Small and Medium Enterprise (MSMEs).
In 1955, the Government of India formed NSIC, then known as Mini Ratna PSUs (Public Sector Undertaking). Its headquarters are in NSIC Bhawan, Okhla Industrial Estate, New Delhi, India.
NSIC promotes and fosters the growth of MSMEs operating in India through single-point registration, marketing support, credit rating schemes for SMEs, etc.
Before applying for NSIC registration, the applicant must necessarily meet these requirements for being eligible:
- They must be a Micro or Small Enterprise with valid Udyog Aadhaar Memorandum or EM Part-II.
- MSMEs who have incurred commercial production for one year or less can apply for a provisional NSIC certificate with one-year validity.
The online and offline NSIC registration processes are outlined below:
NSIC online registration
Step 1: Go to official website of NSIC.
Step 2: Select ‘Online Registration for GP’.
Step 3: Fill in all the required details in the NSIC Registration form, press save, and proceed.
Step 4: Pay the NSIC Registration fees.
Step 5: Submit the NSIC Registration Application.
NSIC offline registration
Step 1: Download a copy of the NSIC Registration Application Form.
Step 2: Fill in the required details.
Step 3: The micro, small, and medium enterprises have to submit the reports to the Zonal/ Branch office, and essential charges are to be paid to the Sub Office/Extension office of NSIC.
Step 4: Another form has to be filled out at the inspection office. This process has a deadline so that the Inspection agency can do the technical inspection of the MSME premises.
Step 5: After generating the inspection report, the National Small Industries Corporation issues the MSME a registration certificate.
Documents required for online and offline registration
A checklist of the required documents is given below.
- Complete details of the plant and machinery installed such as date of purchase, asset value, depreciation, etc.
- COI, in the case of a company
- Form A issued by the registrar of firms to a Partnership Firm
- LLP agreement in case the applicant is LLP
- Self-attested supporting documents for ownership
- Bank’s report describing the financial goods or in-process goods
- Company PAN
- Audited financial statement of the preceding year
- BIS Licence, if applicable
- Declaration from director concerning non-connection with any large-scale unit
- Copy of the latest electricity bill of the premise
- Optional requirement: ISO 9000
NSIC Registration Charges
NSIC Registration charge is based on turnover. Inspection charges are paid in addition to the registration fee. The fee structure of MSMEs is given below:
|Upto Rs. 1 cr turnover||For small enterprises: Rs. 5000 For micro enterprises: Rs. 3000|
|More than Rs. 1 cr turnover||For small enterprises: Rs. 5000 plus Rs. 2000 for every additional turnover of Rs. 1 crFor micro enterprises:Rs. 3000 plus Rs. 1500 for every additional turnover of Rs. 1 cr|
The validity of NSIC Registration
The registration validity is two years under the Single point registration granted to MSMEs. This should be renewed at the end of every two years.
Benefits of NSIC Registration for MSMEs
- All government tenders are allotted free of cost to eligible MSMEs.
- The Earnest Money Deposit is not required to be paid.
- Development of SSSIs: 358 items are reserved by the NSIC that are to be purchased only from the Small Scale Industries so that they can be promoted and uplifted.
- Provides consultancy services: In India, NSIC encourages capacity development, institutional framework, and policy.
Types of Loans
- MSME loan: Start-ups, individuals, MSMEs, and SMEs can get loans. To help entrepreneurs, several financial institutions offer collateral-free loans known as MSME loans.
- Working capital loan: To give impetus to the growth of MSMEs, loans are disbursed. Working capital loans include:
- Credit Letter
- Overdraft facility with a current account
- Unsecured Business Loans for the short term
- Bill discount
- Loans are provided under the CGTMSE scheme
- Cash credit facility
3. Term loan: In this type of loan, a fixed amount of money is borrowed for a specific period, on one particular date. The amount is paid back with interest.
Government schemes implemented by NSIC:
1. Marketing assistance scheme
- Enhance marketing capabilities
- Exhibit competencies
- Update theme on prevailing market scenario and its impact
- Formation of groups
- Provide platform—large institutional buyers
- Information—programs & schemes of the government
2. Performance and credit rating scheme
- Sensitising SSI for the need for credit rating
- Encouraging SO—good financial track record
3. National scheduled caste and scheduled tribe hub
To support the inclusive growth of SC/ST entrepreneurs and new entrepreneurs, take part in stand-up India.
The government of India promoted the Aspire scheme for the Promotion of Innovation, Rural Industries, and Entrepreneurship (ASPIRE) by the Ministry of Micro, Small, and Medium Enterprises (MSME).
Schemes of NSIC:
1. Bank credit facilitation scheme
When submitting a loan application to a national or private bank, NSIC helps fill the documents. The MSME have to approach NSIC, and their office will assist the MSME in completing the documentation process.
2. Single Point Registration Scheme (SPRS)
SPRS scheme assists MSMEs in India
3. The raw material assistance scheme
This scheme helps MSMEs in purchasing indigenous and imported raw material.
4. Infomediary services/B2B
This scheme is a one-stop window solution for information on business, finance, and technology.
5. Infrastructure development
The scheme is for the development of infrastructure all over the country.
6. Technology incubation under PPP mode
- Under Public-Private Partnership, this scheme set up a Training-cum-Incubation Centre across the country.
- More than 94 NSIC TICs are set under PPP.
7. Marketing intelligence services
The scheme helps to provide information on:
- What happened in the marketplace
- Issues in the market
- Potential of the market