National Small Industries Corporation (NSIC) Subsidy
What is NSIC?
The National Small Industries Corporation (NSIC) is a Public Sector Undertaking (PSU) that comes under the purview of the Ministry of Micro, Small & Medium Enterprises of India. It was set up by the Government of India in 1955 to foster, promote and aid the growth of the Micro, Small and Medium Enterprises (MSME) in India. The corporation has set up training and incubation that is managed by professionals. NSIC provides integrated support services in various fields that include technology, support service, finance and marketing. NSIC registers Micro & Small Enterprises (MSEs) under Single Point Registration Scheme (SPRS) for involvement in Government purchases.
Table of Contents
Aim of the NSIC Scheme
- Supporting MSMEs: NSIC aims to support Micro, Small and Medium Enterprises by providing services in marketing, technology, finance and other areas.
- Promoting Entrepreneurship: NSIC encourages entrepreneurship development by providing training and support to help people set up their own businesses.
- Healthy Competition: NSIC provides schemes to help MSMEs become more competitive.
- Facilitating International Partnerships: NSIC facilitates international partnerships between Indian and Foreign MSMEs for business development, technology improvement and exchange, and joint ventures.
What is NSIC Registration?
Micro and Small Enterprises (MSEs) who have Udyog Aadhaar Memorandum (UAM) and possess their own workshop or on lease basis are eligible for registration. Eligible enterprises should possess commercial and technical advancement to provide services for supply to various government departments that include defence, railways, PSUs, central and state government departments.
MSMEs fulfilling this criterion are eligible for registration under SPRS. MSEs who have already started their commercial production but not completed 1 year of existence are also eligible for the registration.
Also Read: MSME Advantages and Disadvantages
What is Single Point Registration?
To enhance the share of purchases from the MSME sector, the Single Point Registration Scheme (SPRS) was launched by NSIC in 1976 under the Government Stores Purchase Programme. This scheme enables MSEs to participate in government purchases through a single registration. The entities registered under Single Point Registration Scheme of NSIC are eligible to avail benefits under “Public Procurement Policy for Micro & Small Enterprises Order 2012” as directed by the Government of India.
Benefits of NSIC Registration
Some of the benefits of NSIC Registration are as follows:
- Exemption from Vendor Assessment: A business entity having an NSIC certificate is exempted from Vendor Assessment on Gem Portal.
- Supports MSMEs: Registering under NSIC provides access to training and workshops on topics such as marketing strategies, technology investment strategies, finance management and more to help MSMEs improve their performance.
- Free Allotment of Tender: MSMEs can freely participate in government contracts and tenders by obtaining NSIC Registration Certificate. It also helps small-scale businesses get the contracts they need for their work and allows them to sell their products at competitive prices.
- Easy purchase of Government Prices: Registered Businesses also get preference in tenders floated by Public Sector Undertakings (PSUs). MSMEs can secure government purchases and tenders under the SPRS. Moreover, MSMEs would also be notified by any allotted tenders.
- Ensures Legality of a Business: NSIC registration ensures legality and protects businesses from being cheated by unethical traders and ensures that only quality goods are supplied. The NSIC logo is a quality mark and a valuable promotional tool for businesses.
- Reservation for SC/ST and Women Entrepreneurs: SPRS registered units are an essential aspect of the government’s supply chain. The government allows reservations for some units. Hence, out of the yearly procurement requirement of 25% from MSMEs, 4% is planned for units owned by SC/ST and 3% is earmarked for units owned by Women Entrepreneurs.
Also Read: MSME New Classification in Detail.
Eligibility Criteria
Eligibility criteria before you apply for an MSME loan through the NSIC scheme. These include:
- Business must be a small or medium-sized enterprise (SME) with an annual turnover of less than Rs 100 crore are eligible to apply for MSME loans.
- Any manufacturer or service provider with a valid GST number can apply for MSME loans.
- Enterprise in successful operation for the last 3 years.
- Under collateral for cash credit loans, banks require necessary details of the business and its feasibility.
- A good CIBIL score is necessary to seek MSME loan approval.
- Traders are not eligible for registration under the NSIC schemes.
Also Read: Business Loan Eligibility Criteria
Documents Required for NSIC
To avail MSME loan, the following documents are required:
- Duly filled application form with passport-size photographs
- Identity, Address, Age, Income and Business address proofs.
- Asset and Liability Statement of promoters, proprietors, guarantors, directors, etc with the latest income tax returns.
- Rent Agreement/Lease Deed if business premises is rented or leased
- Copy of SSI registration certificate/Entrepreneurs Memorandum
- Profile of the Unit which includes, Name and Address of promoters, experience, nature of the activity, address of all offices, shareholding pattern, etc
- Last 3 years Balance Sheet with IT/ST returns
- Projected Balance Sheet for the next 2 years
- CMA data in the prescribed format if the limit required is Rs 100 lakhs and above
- Position of accounts with existing bankers
- Comprehensive project report for term loan requirements
- Estimates / Quotations / Sanctioned building plan, etc.
- Clearance from Pollution Control Board
- Clearance from Electricity Board and other statutory authorities
- Month-wise production and sales data for the current financial year, the value of stock in process, finished goods, debtors, creditors, etc.
How to apply for an NSIC Certificate?
To complete the registration process, MSMEs need to duly fill the application form and submit the form along with required documents to the respective NSIC’s branch offices located nearest to the unit. An Authorised person of MSMEs can download the application form by visiting the official website of NSIC and also can apply for registration under SPRS.
The registration process is as follows:
- Visit Udyam Registration website for obtaining Udyam Registration Number.
- MSEs have to register themselves in MSMEDataBank using Udyam Registration No. and PAN to get themselves registered for Single Point Registration.
- Single registration has a 7 step form. Each step has a save and continue option. This way, the form can be refilled and reviewed at any moment using your PAN and Udyam Registration combination.
- You will be requested to go through the Checklist and Download section to get to know about required forms, annexure and documents.
- It is always advisable to kindly place all required forms, annexure and documents on your desktop for fast uploading.
- Fees will be charged on the basis of Unit Enterprises category.
- Third party inspection is also involved for store items inspection. Units are requested to kindly choose an inspection agency according to their domain expertise and jurisdiction.
- Contact NSIC field offices for any query by visiting: https://nsic.co.in/Corporate/SearchBranch.aspx
Registration Fees for NSIC
The registration fee is defined as per the MSMEs annual turnover and last audited balance sheet. Here are the basic details of the registration fees for MSEs are mentioned below:
| Entity Type | Turnover up to Rs 1 Crore | Turnover above Rs 1 Crore |
| Micro Enterprises | ₹3,000 | ₹3,000 + ₹1,500 for every additional turnover of ₹1 Crore |
| Small Enterprises | ₹5,000 | ₹5,000 + ₹2,000 for every additional turnover of ₹1 Crore |
Note: The Registration fee as mentioned in the table above is exclusive of the Inspection charges levied by the Inspecting agency. GST will be applicable extra on the charges. The units located in the North Eastern Region will be given a 20% concession in the Registration fee. Cap of Rs 1 lakh for all categories.
Contact NSIC for Support
National Small Industries Corporation (NSIC)
NSIC Bhawan, Okhla Industrial Estate,
New Delhi – 110020, India
Schemes that Comes under National Small Industries Corporation (NSIC)
- Single Point Registration Scheme: NSIC enrols Micro and Small Enterprises (MSEs) in the Single Point Registration Scheme (SPRS) to participate in Government Purchases. Units that are registered through NSIC’s Single Point Registration Scheme are eligible for privileges under the Public Procurement Policy for Micro and Small Enterprises.
- Marketing Assistance Scheme: Marketing assistance has long been regarded as one of the most crucial elements for the growth of any firm. In this highly competitive market, for the survival and growth of Micro, Small and Medium Enterprises. NSIC established a variety of services to assist businesses in their marketing growth and efforts.
- Raw Material Scheme: This scheme helps MSMEs by funding the procurement of raw materials. It enables MSMEs to produce high-quality goods. The main advantage of the Scheme is to facilitate purchasing raw materials with credit support for up to six months.
- Technology Incubation Scheme: Emerging technical and knowledge-based entrepreneurial concepts must be nurtured and developed in a supportive environment before commercialising the business. As a result, the technology-based companies.
- International Cooperation Scheme: NSIC encourages long-term international collaborations. Long-term business relationships are the main core rather than one-way transactions. It can through means such as, exchanging technological missions with other countries, discovery of new markets and areas of collaboration or by identifying new export markets by attending sector-specific shows around the world.
NSIC Validity and Renewal
- The validity of the NSIC Certificate is Two Years from the registration date, the MSE units can apply for renewal six months before the certificate expires.
- Renewal under NSIC is completed in person by presenting the recommended application and the endorsed application fee to the relevant division. The expense is determined by the net sales turnover of the company.
- MSMEs that renew their SPRS certificates before expiration receive a 50% deduction on the renewal fee.
- If there are no changes from the previous certificate, MSE units can apply for renewal online.
- Applicants must possess all the documents required for NSIC registration along with the original NSIC certificate at the time of renewal.
FAQs
The full form of NSIC is National Small Industries Corporation.
Ṭhe full form of SPRS is Single Point Registration Scheme.
MSME stands for Micro, Small & Medium Enterprises. The Government of India coined the term in line with the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006. It comes under the Ministry of MSME and is engaged in entities such as the production, manufacturing, processing, or preservation of goods and commodities.
The validity of Single Point Registration Certificate or SPRS certificate is of 2 years from the date of registration and thereafter renewed every two years.
The allowable limit for investment in equipment is above Rs 10 lakh and up to Rs 2 crore.
NSIC Registration is a way of formalising your business and getting listed in the NSIC database. The Government of India set up NSIC to support people who run small businesses. The MSMEs registered with NSIC are eligible for support under many governmental developmental programs.
National Small Industries Corporation (NSIC), is a certified enterprise of the Government of India that works under the Ministry of Micro, Small and Medium Enterprises (MoMSME) that promotes the growth of Micro, Small and Medium Enterprises (MSMEs) in India. Whereas, MSME is itself a sector that comprises numerous Micro, Small and Medium Enterprises.
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