In this guide we are talking about Benefits of SSI Registration. If your business falls under Small scale Industries then you and your business can rip some benefits of being a part of small scale industries in India. Indian government nowadays are taking phenomenal steps in improving the conditions of small-scale business units in India. The government is introducing many scheme and privileges that are sure to help in the survival of small businesses in India. As for India, small-scale industries have contributed more than any other sector for the economic and financial development of the country. Also, most of the employment generated in India is in the small-scale industry sector, therefore SSI Businesses are also helpful in decreasing unemployment ratio in the country.
Before proceeding further please check out our article on SSI Registration for information on how to get SSI registration and procedure of SSI registration.
The Key Benefits that a Small Scale Industries enjoy when they obtain SSI registration are as follows:
1) Subsidy for Participating in Trade Fairs.
National Small Industries Corporation Ltd. (NSIC), is a Government body under Ministry of Micro, Small and Medium Enterprises (MSME). NSIC primary focus is on promoting, aiding and fostering the growth of Small Scale Industries and MSME businesses in India. Marketing is an important factor that determines the success of any business.Nsic provides huge assistance services to SSI units regarding marketing. Nsic gives Exhibition space to SSI Units in various domestic exhibitions at subsidized rates to enable them to exhibit their products and services and create a market for their products and services.
2) ISO Certification Subsidy.
The Owners of SSI units must know that the Government of India provides a subsidy, wherein the cost of acquiring ISO Certifications like ISO 9000 and ISO 14001 is subsidized for the SSI Units.The scheme provides for all units who have acquired an SSI Registration to have a reimbursement of charges of acquiring ISO-9000/ISO-14001 certifications to the extent of 75% of the expenditure subject to a maximum of Rs.75,000/- in each case.
3) Subsidy for Bar Code.
A barcode is an image That has lines and numbers below these lines that is mostly affixed to the backside of packaging of the products to identify a particular product number, model, person, or location. the Ministry of MSME provides a subsidy to SSI Units for getting Bar Codes for the products and services. The subsidy provided is 75% of the one-time registration fee and 75% of the annual recurring fee for first three years of cost of Bar Coding products.
4) Benefits from Banks.
The banks and financial institutions that are operating in India recognize SSI Units significantly and they have also created some of the special schemes for them. This however usually includes the priority sector lending, a loan of a high amount at lower bank interest rates and some reliefs and relaxation may be given to SSI Units in case of delay in repayment and Collateral free loan facility is also available for Small scale industries etc.
5) Taxes Benefits.
In accordance with the business operated by the SSI units, it may enjoy an excise exemption scheme as well as an exemption from certain direct taxes and indirect taxes under various tax laws in India.
6) State, Central and CGTMSE Benefits.
Central and states government time to time offers SSI units that have SSI registration subsidies on power, taxes, and entry to the state-run the industrial estates.SSI Units also enjoys sales tax exemption in most states and the purchase preference on the goods that are produced. And also the government of India has also introduced CGTMSE Scheme under which SSI Businesses can obtain Business Loan without giving any Collateral security.
7) other benefits of Small Scale Industries (SSI) Registration.
The government of India also provides some other special benefits to the businesses that have SSI registration in the form of assistance in obtaining finance, help in the marketing of products and services, technical guidance such as training and skill development, technology upgradation and in legal and compliance matters etc.