Small Scale Industries are ones that use small machines and small labour to manufacture, produce, and deliver services. These businesses must follow the rules set forth by the Indian government like The principles of SSI registration, SSI certification, and the function of SSI in the Indian economy. These companies make a one-time investment of up to Rs. 10 crores in machinery, plant, and equipment and have an annual turnover of less than Rs. 50 crore.
Steps Required for SSI Registration
The State Government’s Directorate of Industries administers SSI registration on behalf of the Ministry of Micro, Small, and Medium Enterprises. The main reason for SSI registration is to establish new SSI firms in India. SSI registration allows the firm to be eligible for a variety of government benefits. We can also register for SSI/MSME online using Udyam Registration.
1. Go to the Udyam Registration site and choose "For New Entrepreneurs who are not yet MSME registered or have EM-II."
2. Enter your "Aadhaar Number" and "Entrepreneur's Name" and then click "Validate and Generate OTP."
3. SMS will be sent to your phone with an OTP. The PAN validation screen appears after you enter OPT. Click "Validate PAN" after entering your PAN number.
4. The registration page for Udyam will be made available. Click the "Submit and Get Final OTP" button after filling out all of the required personal and industrial information, such as industry name, address, bank account information, and some other common data.
5. The MSME registration procedure is now complete, and you will receive a message verifying success along with a reference number. Following registration verification, the MSME Registration Certificate is issued.
Small-scale industry features
1. Ownership- Typically, these businesses are sole proprietors or, in exceptional situations, partnerships. This usually means that the company is controlled by a single person.
2. Requirements for the Workforce- These industries rely largely on personnel to carry out manufacturing activities due to the lower capital investment required in comparison to large-scale industries.
3. Management- One of the most distinguishing features of SSI is that owners have complete ownership and management of their enterprises. As a result, the owner is involved in the day-to-day operations of the company.
4. Flexible -These industries are particularly vulnerable to unanticipated business shifts due to their small size. In the face of shifting business conditions, they are more nimble.
5. Resource Utilization at Its Best- Small businesses make the most of what they have since they don't have a lot of them, and they don't waste anything.
6. Operational Restrictions- The bulk of small businesses is located in a small geographical area. As a result, they only operate on a local or regional scale.
Role of Indian Economy in Small Scale Industries
1. Employment-They rely largely on labour and people to carry out their production activities due to a lack of technology and resources.
2. In terms of total output, these companies account for more than 40% of India's total product and service output. They play an important role in the economy's expansion and strengthening.
3. The most effective manifestations of the Make in India idea are the SSIs. They intend to manufacture in India and sell their items all over the world. This also aids in the expansion of worldwide demand.
4. Contribution to exports: These small businesses make about half of the commodities exported from India (45 per cent to 55 per cent)
The public's wellbeing
5. These industries are vital for our country's social growth and development, aside from economic considerations. These businesses are usually started by people from the lower or middle classes. They have the ability to gain fortune while also employing others. It helps with economic distribution and promotes social progress.
