NSIC Registration: Your Path to Government Support

Under the Ministry of Micro, Small, and Medium Enterprises (MSMEs), the Government of India oversees the National Small Industries Corporation (NSIC). NSIC encourages and supports MSMEs’ expansion across the country. Professionals oversee the corporation’s incubation and training programs. NSIC offers comprehensive support services across multiple domains, including technology, marketing, finance, and support services. Micro and Small Enterprises (MSEs) can participate in government procurement by opting for NSIC Registration under the Single Point Registration Scheme (SPRS).

The Indian government founded the National Small Industries Corporation in 1955. Currently, NSIC is a well-known Mini Ratna PSU with ISO 9001:2015 certification. The Government of India established NSIC to support small and expanding businesses in post-independence India. NSIC serves as a middleman, supporting small-scale industries (SSI). MSEs with NSIC registration are eligible for several government development programs, which can help them expand their businesses significantly.

Benefits of NSIC Registration

NSIC Registration brings a wide range of benefits for the entities to enjoy under the domain. A few of such benefits are as follows-

1. Free issuance of the tender sets;

2. waiver of the need to pay an earnest money deposit (EMD);

3. Participating MSEs in the tender who quote prices within the L1+15 percent price band may also supply up to 25% of the requirement by lowering their prices to L1 price, provided that L1 is made up of non-MSEs.

4. Every Central Ministry, Department, and PSU must set an annual target of acquiring at least 25% of the goods and services produced or provided by MSEs.

5. Three percent goes toward units owned by women entrepreneurs, and four percent goes toward units owned by Schedule Caste/Schedule Tribes, out of the yearly minimum of twenty-five percent procurement from MSEs.

6. 358 products are only available for purchase in the SSI Sector.

Check if you are eligible for NSIC Registration

To proceed ahead with the NSIC Registration, you need to fall into one of the five categories to qualify for the minimum eligibility criteria:

1. Registration with NSIC is open to all Micro and Small Businesses who hold an EM Part-II (Optional) or Udyog Aadhaar Memorandum (UAM).

2. For nascent businesses, Micro & Small Enterprises have initiated their commercial production but have not yet reached their first anniversary of establishment.

3. Then, Micro & Small Businesses may apply for and receive a Provisional Registration Certificate, which will be good for a year.

Note: Traders can't register under this scheme.

Challenges to experience in NSIC registration

The process of NSIC registration is a road with hurdles that are expected to face for a successful journey. A few of such hurdles are as follows:

Complex Process

The NSIC registration process is quite complex to be covered single-handedly. This becomes a problem for individuals dealing with the process without a team as the burden leads to missing important compliances, documents, and other things.

Comprehensive Documentation

The documentation required to be prepared for the NSIC registration is quite in numbers which makes the process a bit exhausting. This creates exertion for the applicant to prepare error-free documents within the specified timeline which eventually leads to committing mistakes in the process.

Exhaustive Compliances

The compliances list for NSIC operation and registration is quite long to be covered. Therefore it is a challenge to meet the compliances on your own without any external assistance. If not taken care of, it is expected to receive notice for non-compliance.

Schemes about NSIC

The following are certain schemes available under the NSIC Registration:

Single Point Registration schemes: The Government of India has directed that firms registered under the Single Point Registration Scheme of NSIC be eligible to receive benefits under the “Public Procurement Policy for Micro & Small Enterprises (MSEs) Order 2012”.

Marketing Assistance Scheme: Marketing support has long been regarded as one of the most crucial instruments for any company’s growth. In today’s fiercely competitive market, Micro, Small, and Medium-Sized Enterprises need to survive and flourish. The National Small Industries Corporation has some programs to aid businesses in promoting their products and services in both domestic and international markets. The following is a quick description of these schemes:

Associations and Bidding Promotion: When it comes to obtaining and delivering significant orders, micro, and small businesses face many challenges that prevent them from competing on an equal footing with larger organizations. To combine in their capacity, National Small Industries Corporation develops consortia of MSEs that manufacture the same or similar products or items. To obtain orders for individual micro and small enterprises or consortiums of micro and small enterprises, the National Small Industries Corporation submits tenders on their behalf. Ultimately, these orders are distributed across Micro and Small Businesses based on their manufacturing capabilities.

Technology Fairs and Exhibitions: Annual participation in National and International Trade Fairs and Exhibitions by the National Small Industries Corporation serves to highlight the key competencies of Micro and Small Enterprises in India and to leverage market opportunities. The National Small Industries Corporation provides MSEs with rents and other subsidies to make their participation easier. By taking part in various national and international events, Micro and Small Enterprises units get to know foreign business practices and enhance their business acumen.

Credit Assistance: NSIC offers credit support to the MSEs in a varied range of areas such as financing raw material procurement, marketing activities, exporting, Bill discounting, etc. National Small Industries Corporation forms strategic agreements with many commercial banks to provide working capital and long-term financing of MSEs nationwide, ensuring a seamless flow of credit to MSEs. The agreement calls for the National Small Industries Corporation to share the processing fee and submit loan applications from interested MSEs to the banks.

For more information, visit us on: https://www.registerkaro.in/