Are SSI Certificate and MSME Certification is the Same or Different?

MSME is the short form of Micro, Small and Medium Enterprises whereas SSI stands for Small Scale Industries.

An enterprise is called a Micro Enterprise if:

• The investment done in plant and machinery does not exceed Rs.25 lacs if the business is related to manufacturing or production of goods and
• The investment in equipment does not exceed Rs.10 lacs, if the business is engaged in providing services.

An enterprise is called a Small Enterprise if:

• Small enterprise: The investment and business’s financial worth is between Rs 25 lakhs and Rs 5 crores and not exceeding the higher.

An enterprise is called a Medium Enterprise if:

• Medium enterprise: The investment and business’s financial worth is between Rs 5 crores to Rs 10 crores.

If the major activity of the business is to provide services, the MSME’s are categorized as below:

1. Micro enterprise: The investment in equipment will not be more Rs 10 lakhs
2. Small enterprise: The investment in the equipment would be between starting from Rs 10 lakhs to Rs 2 crores.
3. Medium enterprise: Rs 2 crores to Rs 5 crores.

MSME Registration is necessary for developing accountability and transparency in the Micro, Small, and Medium enterprises as well as Small Scale Industries.

After the documents necessary for MSME registration are submitted and accepted by the Government, the business will receive a document which is known as MSME Certificate/SSI Certificate.

This scheme is majorly offered to the startups and small business owners in order to support them financially.

In a developing country like India, MSME industries are known as a major contributing factor of the economy.

The Micro, Small and Medium Enterprises (MSME) play a significant role by contributing in the growth of Indian economy. The Indian economy, which is majorly dependent upon agriculture and small businesses, benefits at a major level from the Micro, Small and Medium Enterprises (MSME’s) and Small and Medium Enterprises whereas SSI stands for Small (SSI’s).

MSME is known as the backbone of the economy and is highly supported by the Government.

Small and medium enterprises fall under SSI/MSME Registration category.

The Micro, Small and Medium Enterprises Development Act, 2006 aims at facilitating the promotion, development and enhancing the effectiveness of micro, small and medium enterprises and for matters connected therewith or incidental thereto.

MSMED Act provides various procedures and methods for the successful operations, development, growth, boost, and maintenance of industry standards in the market of MSME and establishment of National board for MSME Registration.

To avail benefits, incentives, schemes, and subsidies granted by the Government, MSME entrepreneurs and business owners need to register themselves under the SSI Registration / MSME Registration Act with the concerned department.

Any enterprise that is registered under the MSME Registration / SSI Registration will avail the below mentioned benefits:

• The rate of interest charged from the enterprises will be lesser in comparison with other other interests charged.
• They can also receive tax subsidies
• capital investment subsidies and
• Other support from the Government Sector
• 1% exemption on interest rate on overdraft
• Protection against payments not done on a timely basis
• Benefits from the Industrial Promotion subsidy
• 50% subsidy on Patent registration
• Collateral fees loans from banks
• Easy sanction of loans

Certain criteria are supposed to be followed before applying for msme registration:

1. Manufacturing enterprises whose investment amount in plant & machinery is less than 10 crores can accomplish MSME registration as a MSME under MSMED Act.
2. Service enterprises that have an investment amount in plant & machinery of less than 5 Crores can do MSME registration itself as MSME under MSMED Act.
3. If the manufacturing enterprise’s investment amount exceeds the specified limit, the enterprise will not be able to avail benefits as it will no longer fall under the MSME category.

• Copy of Aadhaar card of the applicant
• Name of corporation or business.
• The kind of corporation
• Copy of PAN card
• Address proof of the registered office address
• Mobile number and Email Address
• NIC code
• Number of employees
• Amount Invested in Plant & Machinery / Equipment
• Certificate of incorporation of the enterprise
• Cancelled cheque of current account
• Main business activity of enterprise

By reading the article, it is clear that MSME Certificate is the same as SSI Certificate.