Small Scale Industries – All You Need to Know

What are Small Scale Industries (SSI) 

Small Scale Industries is an establishment that is included in the services of micro or small scale, providing services, manufacturing, and production. It is essential to the economy of India as they initiate employment and use local resources. Small Scale Industries such as candles, paper bags, xerox and printing, beauty parlors, t-shirt printing, photography, bakeries, school stationery, water bottles, leather belt, small toys, etc., are those that manufacture and provide services by producing a limited investment. The government of India offer scheme and services, and to boost these industries & use them, you should register your SSI. 

What is the registration process for SSI? 

• Apply for provisional registration 

The certificate of SSI is provided to units in the pre-operative period to assist them to secure working capital. When a corporation applies for provisional registration, it is given without any physical inspection. 

• Start a business

 A provisional certificate is legal for 5 years, and make sure that your firm is operational at that time. 

• Apply for permanent certificate registration

 If your firm is functioning for 5 years, then you can apply for a permanent certificate from the Ministry of MSMEs. 

What are the eligibility criteria for SSI registration? 

Given below are two types of Small-Scale Industries: - 

• Manufacturing enterprises 

• Service industry  

Benefits of SSI registration 

• Loans can be offered at a lower rate of interest. 
• Easy access to credit. 
• SSI can assist with several tax refunds, after the registration of SSI. 
• State government incentives. 
• Favor for government license and certificate. 
• Units of SSI are permitted to carry forward for MAT (Minimum Alternate Tax) for up to 15 years. 
• Easy accessibility of raw materials  

Documents required for SSI registration 

• Business address proof. 
• Buy bill copies of machinery, raw materials, etc. 
• NOC by pollution control committee. 
• Partnership deed, AOA, and MOA. 

Issues over Small Scale Industries 

• Lack of raw materials. 
• The shortfall in the market support 
• Managerial issues 
• Shortage of technology upgrade 
• Scare infrastructure 
• Inadequate finance 
• Under usage of capacity 
• Hassle in Import and Export 
• List of Small-Scale Industries 

Features of Small Scale Industries 

Ownership: - Manufacturing businesses of small scale are generally operated by a sole proprietorship or sometimes partnership.  

Flexibility: - As the units are relatively small in size, they can be easily adjustable to the changing environment.  

Resources: - SSI is located in an area where resources are easily available. And this decreases the cost of transportation for the manufacture and utilization of resources. 

Short-range: - The manufacturing industry of SSI does not function on a significant scale. 

List of Small Scale Industries 

Various products supplied by Small Scale Industries 

• Paints and Varnishes  
• Steel and wooden furniture 
• Safety matches  
• Stationery items – Detergents and Soaps 
• Leather and leather goods 
• Ready-made garments 
• Sheet metal goods 
• Toothpaste and toothpowder  
• Plastic and rubber goods 
• Domestic utensils  
• Preserved vegetables and foods 
• Hosiery goods  

Objectives of Small Scale Industries 

• To generate more opportunities for employment. 
• To lower regional imbalances. 
• To reach self-alliance. 
• It gives the statistics of the units of SSI working in India. 
• Decrease regional inequality. 
• Determine the issue of unemployment. 
• To provide equal distribution of wealth and income. 
• To enhance people’s standard of living. 

Therefore, knowing the facts about Small Scale Industry (SSI). Apply via financeseva for the best deals. 

Also read: - What is MSME? Its Definition, Role, and Importance