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Small Scale and ancillary units (i.e. undertaking with investment in plant and machinery of less than Rs. 1 crore) should seek SSI Online Registration with the Director of Industries of the concerned State Government.

The registration scheme has no statutory basis. Units would normally get registered to avail some benefits, incentives or support given either by the Central or State Govt. Benefits available under the MSMED Act Registration of Micro, Small and Medium (MSM) Enterprises under MSMED Act is a very powerful medium to enjoy the regime of incentives offered by the Centre generally contains the following:

Micro and Small Enterprises:

Protection against delay in payment from Buyers and right of interest on delayed payment
Preference in procuring Government tenders,
Stamp duty and Octroi benefits,
Concession in electricity bills
Reservation policies to manufacturing / production sector enterprises
Time-bound resolution of disputes with Buyers through conciliation and arbitration Reimbursement of ISO Certification Expenses
Credit prescription (Priority sector lending), differential rates of interest etc.
Excise Exemption Scheme
Exemption under Direct Tax Laws, etc…

Medium Enterprises:

Easy finance availability from Banks, without collateral requirement
Preference in procuring Government tenders
Reservation policies to manufacturing / production sector enterprises
Time-bound resolution of disputes with Buyers through conciliation and arbitration

There is no difference between SSI Registration and MSME Registration.

A provisionally registered industrial unit when it is about to go into production is to apply for grant of Permanent / Final Registration. An existing and functioning industrial unit is eligible to apply for Permanent / Final Registration without going into provisional registration processes.

All classes of enterprises, whether Proprietorship, Hindu undivided family, Association of persons, Co-operative society, Partnership firm, Company or Undertaking, by whatever name called can apply for the registration and get qualified for the benefits provided under the Act. Printing of MSME Registration / EM Number on the letter heads, invoices etc.

The Micro and Small Enterprises should mention/get printed on their letter heads, supply order sheets, invoices, bills and other relevant documents, the MSME Registration / Entrepreneurs Memorandum (EM) Number allotted by a competent authority, so that there remains an identification of being a MSE supplier.

Loan Without security/collateral: - You might have faced the situation where your business might have required urgent loan however Non availability of collateral your every application for loan might got rejected. This turbulence problem can be solved by obtaining MSME registration. Provided all other compliances are done, your business can qualify for a loan and that even at a lower interest rate than market rate.

Protection from delayed payment: - Suppose you have supplied some services/ Goods to any of the Big Corporation, and they generally delay your payment which may be impacting your business due to working capital deficit. This problem can be solved by Registering to MSME and as per provision in MSME Act 2006 the big guys will be forced to release your payment on time.

Take benefit of Promotional & Development Schemes of Govt:- From time to time Govt announces various schemes to support and promote MSME segment. You can also take benefit provided you register in advance your business entity as a MSME.

No Hidden charges. Every details regarding charges are mentioned in the Quotation file sent to you.