Overview of NISC Registration

NSIC or National Small Industries Corporation, is an ISO certified Government Enterprise under MSME (Micro, Small & Medium Enterprises). NSIC was introduced to promote, help, and foster the growth of MSME in India. National Small Industries Corporation operates via a nationwide network of offices and technical centres in India. Furthermore, NSIC has established a Training cum Incubation Centre managed by professional experts. The main purpose of NSIC is to provide integrated support services in various fields including finance, marketing, technology, and support services. In India, NSIC registers MSEs under SPRS (Single Point Registration Scheme) for involvement in Government purchases.

The Government of India introduced NSIC Registration to support small businesses struggling in today’s economy. NSIC is to give organizations access to benefits from big-ticket purchases made by the Indian Government. If you are not aware of all the vital documents then it will become very difficult to get NSIC Registration Certificate. So contact us, and we will give you all the information regarding the registration and documentation and help you in applying for NSIC Registration.

What are the various schemes under NSIC in India?

The following are the various schemes under NSIC:

1) SPRS (Single Point Registration Scheme): NSIC enlists MSEs under SPRS for participation in Government Purchases. The units enlisted under SPRS of NSIC are eligible to get the benefits under Public Procurement Policy for MSEs Order 2012 as notified by the Government, MSME, NEW Delhi vide Gazette Notification dates 23.02.2012 & amendment vide order no. S.O. 5670(E) dates 9 Nov 2018. The enlistment under the Single Point Registration Scheme is online.

• Issue of the Tender Sets free of cost;
• Exemption from payment of EMD or Earnest Money Deposit;
• In tender participating Micro and Small Enterprises quoting within a price band of L1+15% shall also be allowed to supply a portion up to 25% of the requirement by bringing down their price to L1 prices, where L1 is non-MSEs;
• Consortia facility for Tender Marketing.

2) Marketing Support: It has been considered one of the most crucial tools for any business to develop. It’s for the growth & survival of MSME’s in today’s competitive world. NSIC devised various schemes to support enterprises (both domestic & overseas markets) in their marketing efforts.

3) Marketing Intelligence: Distribute & collect both international and domestic marketing intelligence for the benefit of MSEs. This intelligence cell apart from spreading awareness regarding several schemes for MSMEs will maintain a database in detail & distribute information.

4) Consortia & Tender Marketing: MSEs in their capacity face several issues in procuring and delivering big orders, which negate a level playing field vis-à-vis large enterprises. NSIC forms consortia of Micro and Small Enterprises manufacturing identical products thereby combing in their capacity. NSIC applies the tenders on behalf of a single MSE or Consortia of MSE to get orders for them. Finally, these orders are dispersed amongst MSEs in tune with their capacity of production.

5) Exhibitions & Technology Fairs: TO show the core capabilities of MSEs in India and to capitalize on market opportunities, NSIC participates in National & International Trade Fairs and Exhibitions every year. NSIC enables the participation of Micro and Small Enterprises by offering concessions in rental etc. Participation in these domestic and overseas events exposes MSEs units to international practices & improves their business capabilities.

6) Credit Support: NSIC in India enables credit requirements of MSEs in the following areas:

• Financing for Raw Material Procurement: This scheme introduced by NSIC for the assistance of Raw Materials helps Micro & Small Enterprises by way of financing the procurement of Raw Materials (both indigenous and imported). Following the some features:
• Bulk purchase of some basic raw materials at an affordable price;
• Financial support for Raw Materials procurement up to 90 days or 3 months;
• NISC facilitates the import of scarce raw materials;
• NSIC takes overall care of all the documentation, process, and issuance of a letter of credit for imports.
• Financing for Marketing Activities: NSIC assists in the financing of marketing activities like Exports, Internal Marketing & Bill Discounting.
• Finance via Syndication with Banks: To ensure the smooth flow of credit to Micro and Small Enterprises, NSIC enters into strategic partners with various commercial banks to provide working capital or long-term financing of the Micro and Small Enterprises across the capital. The engagement predicts forwarding of loan applications of the interested Micro and Small Enterprises by NSIC to the banks & sharing the processing fee.

7) International Cooperation Scheme: NSIC backs long-term international collaboration and the emphasis is on long-term business relationships rather than one-way transactions. NSIC has contributed to the strengthening of enterprise-to-enterprise cooperation by providing the following services:

• Finding new markets & areas of collaboration;
• Identifying new export markets by attending sector-specific shows all over the globe;
• Exchanging business or technology missions with different nations.

Benefits of NSIC Registration

The following are the benefits of NSIC Registration:

1. Assist MSMEs in India: NSIC Registration gives training courses & workshops on topics like marketing strategies, technology investment strategies, and many more to help MSMEs in India improve their performance.
2. Assistance in Government Tenders: Registered businesses in India also get preference in tenders floated by PSUs (Public Sector Undertakings). MSMEs can secure government purchases & tenders by utilizing the Single Point Registration Scheme. Aside from that, MSMEs would also be notified of any allotted tenders.
3. Transparency: It also seeks to promote greater transparency in the manner in which overseas funds are raised & spent by NGOs and other trusts involved in a social cause.
4. No EMD Deposit: Companies incorporated under NSIC aren’t required to pay EMD or Earnest Money Deposit.
5. Development of Small-Scale Businesses: To support & grow the small-scale business sector NSIC has reserved around 358 items for purchase only for Small Scale Industries.
6. Other Benefits: Once incorporated, businesses become eligible for extensive benefits like access to credit, raw material assistance, and more.

What is the Eligibility Criteria for NSIC Registration?

Following is the eligibility criteria for NSIC Registration:

• MSMEs having UAM or Udyog Adhaar Memorandum & possessing their workshop or on a lease basis are eligible for NSIC Registration;
• The business must be incorporated with ROC & have a minimum net worth of Rs. 25 lakhs;
• Businesses must be SME with a yearly turnover of less than Rs. 100 crores to apply for the Registration;
• Any Service Provider/Manufacturer with a valid GST Number & meeting the criteria can apply for NSIC Registration online;
• Micro, Small, and Medium Enterprises that have already begun commercial production but haven’t completed 1 year of operation are eligible for Provision Registration for 1 year. After a year, MSMEs can apply for Complete Registration;
• Eligible firms must have technological & commercial advancements to provide services to Government Agencies like railways, PSUs, Central, State, and defense Government Departments;
• Traders are not eligible for NSIC Registration under the NSIC Schemes;
• Also, the Provisional Certificate is valid for only 1 year and issued to MSME with a limit of Rs. 5 lakhs.

Documents Required for NSIC Registration

The following are some vital documents required for NSIC Registration:

• PAN Card of the Proprietor;
• Udyam Registration or UAM Registration;
• Details of Machinery and Plants;
• Copy of latest electricity bill;
• Statement showing the Results of Operation for the last 3 years duly signed by CA;
• Declaration signed by the applicant Micro and Small Enterprise unit accept conditions of Registration;
• Last 3 years of financial details duly signed by the authorized individual under his/her seal:

a) Audited Balance Sheet;

b) P&L Accounts;

c) Schedule of Fixed Assets and Revenue from Operations.

• List of quality control equipment & testing facilities available in the factory;
• Ownership copy of the premises or Lease Deed/Rent Deed copy.

How to Register under NSIC?

The complete NSIC Registration process is simple & online. You will need to provide basic details regarding your business & pay a fee for the Registration. Once you are done, you will get an NSIC Certificate:

• Step 1: Get Udyam Registration Number: Before applying for NSIC Registration, you need to get Udyam Registration Number. Therefore, the first step of the NSIC Certificate is MSME Registration.
• Step 2: Register in MSME DataBank: MSMEs in India are required to register in MSME Data Bank using UAM No. & PAN to get registered for Single Point Registration.
• Step 3: Apply: The application for SPRS is done online on the website. You have to upload all the required forms, documents & annexures properly. After this, the NSIC will forward your application to a zonal branch or sub-branch office nearest to the applicant to complete the unit’s technical inspection & forward of recommendation for NSIC Registration.
• Step 4: Inspection: Once the application part is done, then the 3^rd party will start the inspection. The units have to choose the 3^rd party agency for the inspection as per their domain expertise.
• Step 5: Approval and Issuance of NSIC Certificate: Once you receive the inspection report, NSIC issues a Registration Certificate to the MSE unit. Post approval, the Certificate will be available online & the respective NSIC Office will send a copy of the Certificate by post.

Note: The validity of the NSIC Registration Certificate is 2 years and it shall be renewed every 2 years by verifying the technical & commercial competence of the MSME.

Registration Fees

The following are the basic details of the NSIC Registration Fees:

Important Note: The fee as we mentioned is exclusive of the inspection charges as charged by the inspection agency. GST will be applied to the charges separately. Cap. of Rs. 1 lakh for all categories.

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