NSIC Registration

Overview of NSIC Registration

NSIC stands for the National Small Industries Corporation, which was started in India in 1955. Being an ISO-certified organization, it registers Micro and Small Enterprises (MSMEs) under a single point registration scheme (SPRS) for getting involved in government procurement. It offers access to government contracts, discounts, and benefits. Any MSME registered under this system should consider the Single Point Registration System (SPRS).

The MSMEs can obtain various advantages and foster growth and development with this scheme. There are multiple forms of schemes under the NSIC system. The schemes include credit rating, single point registrations, and marketing schemes.

Eligibility Criteria for NSIC Registration

For NSIC registration, the applicant should comply with the eligibility criteria, which are:

• Small and mid-size enterprises should have less than 100 crore annual turnover.
   
• The organization should be registered with the Registrar of Companies RoC and have a minimum of 25 lakhs in net worth.
   
• MSMEs that have already started commercial production but still need to complete one year are qualified for provisional registration for one year. After that, they can apply for complete registration.

Note: Provisional registration is valid for one year and issued to MSMEs with a five lakhs limit. 

• Traders are not qualified for NSIC registration.
   
• MSMEs should have a Udyog Adhaar Memorandum UAM and process their work on a lease basis to be qualified for registration.
   
• Any service provider or manufacturer with a valid GST number and compliance with the above criteria can apply for NSIC registration online.
   
• Eligible organizations mandatorily have commercial and technological advancements to offer services to government bodies like railways, PSUs, defense, and state governments.

Documents Needed for NSIC Registration

The documents needed for NSIC registration are:

• Sales deed copy
• Banker certification
• Copy of BIS license, if required
• Copy of ISO 9000 (not obligatory)
• Acknowledgment copy of MSME registration
• Last three years, audited P&L and balance sheet
• Details of entry were created in the MSME data bank
• Address and identity proof of the registered individual
• Memorandum as per applicants Performa Annexure F
• Involved particular employees in production and services
• Signed ownership documents and copy of the business place
• Signed copy of Udyog Aadhaar Memorandum (UAM) and PAN number
• A list of quality control equipment and testing facilities is available in the factory
• Quality control measurement review selected by the organization for quality control
• Copy of test report from independent lab, where the applicant mentioned its related standards
• Declaration from partners, sole proprietor, and director on whether or not there is a direct link with the large-scale units.
• Minimum three years of existence proof of business and ownership proof of raw material, plant & machinery equipment, and tools.
• A written quality control measure adopted by the organizations ensures the quality of raw materials, buying products for assembly and sub-assembly, product stores, and finished quality control products.

NSIC Registration Process

The registration procedure is simple and can be performed online. You only need to provide basic information about the organization and pay registration charges. After successful registration, you will be granted an NSIC certificate.

1. Aply for Udyam Registration: An Udyam registration number is needed to apply for NSIC registration.

2. Registration in MSME Data Bank: MSMEs must register with an MSME data bank using PAN and UAM numbers to apply for Single Point registration.

3. NSIC Application Registration: To register for a single point, you need to visit the NSIC website. The organization must properly upload forms, documents, and annexures on the website. After applying, NSIC will forward the application to the zonal branch or sub-branch office nearest the applicant to complete the technical inspection of the unit and forward the recommendations for NSIC registration.

4. Third-Party Inspection: Evaluation conducted by third-party organizations for store products. The unit must select an inspection agency based on domain proficiency and jurisdiction.

5. Submit and Approval of NSIC Certificate: After receiving the evaluation report, NSIC will grant registration to the MSE unit. The certification is available online, and an NSIC office representative will send a physical copy.

NSIC Registration Fees

During the NSIC registration procedure, different changes do not require payment.

• Inspection charges
• Professional fees

The NSIC registration charges are described according to MSME’s yearly turnover and latest audited balance sheet. However, the registration charges are mentioned below:

SPRS Registration Fees
Category	Turnover up to Rs. 100 lakhs	Turnover above Rs. 100 lakhs
Micro Enterprises	Rs. 3000	Rs. 3000 plus Rs. 1500 for every additional turnover of Rs. 1 crore
Small Enterprises	Rs. 5000	Rs. 5000 plus Rs. 2000 for every additional turnover of Rs. 100 crore

Note:  GST is applicable on extra charges of Cap of Rs 1 Lakh for all categories.

Additional Fees
Fee for issuance of amendments in Stores	50% of the charges proposed above for Micro and Small Enterprises with a cap of Rs. 50,000
Fee for issuance of change in monetary limit or any other amendment in the certificate
Fee for issuance of Renewal of Registration

NSIC Validity and Online Renewal Process

As to the validity of the NSIC, it is highly appreciated that this agency allows the renewal of their certifications online. The validity of the NSIC certificate is two years from the date of registration, and the MSE units are free to apply for renewal six months from the expiry of the said certificate.

Renewal under NSIC is done by hand delivery with the recommended application and the endorsed application fee to the proper division. The expense is directly related to the overall turnover of the net sales of the organization in question.

MSMEs that wish to renew their SPRS certificates are offered half price off their renewal charges, provided that the renewal is conducted before the expiration of their current certificates. MSME Units that have not signed to make changes as per the previous certificate can apply for renewal through the online portal.

As for the NSIC registration, the applicant must present copies of all necessary legal documents for NSIC registration and the original copy of the NSIC certificate at the time of NSIC certificate renewal.

Benefits of NSIC Registration

MSME and small-scale Scale Industries can avail of different forms of benefits through NSIC registration:

1. Technology Exhibitions: The MSMEs registered under the NSIC system would benefit from such world-class technology. MSMEs can be informed of digitization, and technology advancements can be learned through these exhibitions.

2. Supports MSMEs: Registration under NSIC also entitles various training programs and workshops regarding marketing, technological acquisition, financial management, etc., which can benefit MSMEs in India in enhancing performance.

3. Exempted from paying EMD: Those MSMEs registered and engaged with NSIC for a particular product line and whose credentials have been verified by the NSIC database are out of the purview of payment of Earnest Money Deposits (EMD).

4. Skill Development and Training: Since there is advocacy of entrepreneurship at the national stage, NSIC aids skill development for different people involved with developing MSMEs.

5. Free Allotment of Tender: NSIC Registration Certificate makes MSMEs capable of engaging in government contracts and tenders without restraint. This also assists small-scale ventures to access the contracts required for their work and enables them to offer their goods at reasonable costs.

6. Assistance in Government Tenders: Registered businesses receive priority in the proposals floated by the public sector undertakings (PSUs). Using the SPRS, MSMEs can access government purchases and tenders and have a share in these markets. Besides that, any tenders that would be assigned to MSMEs would also be notified to them accordingly.

7. Provides Transparency: It also aims to enhance accountability regarding the foreign funds received and spent by the NGOs and other trusts engaged with a social issue.

8. Helps a Business Operate Legally: NSIC registration also ensures that businesses are not defrauded by unscrupulous traders in the market and that only the best goods are supplied. The NSIC logo is a quality mark and a promotional sign for any business.

NSIC Consultant - Agile Regulatory

The organization faces many challenges in obtaining a license; thus, seeking help from an NSIC registration agent is the best decision. So, availing of the NSIC certification process becomes more manageable when backed by Agile Regulatory. 

Frequently Asked Questions(FAQs)