Small-Scale Industries (SSI) are the pillar of the Indian economy. These industries have an investment of a maximum of Rs. 1 crore and an annual turnover of a maximum of Rs. 10 crores. They operate on a small scale and are largely labor-intensive. Since SSIs are an integral cog of the Indian economy, the Government of India has launched various schemes for this sector that can help it grow, avail a business loan at a lower interest rate, enjoy subsidies, and more. However, to do so, it is important to register your company.
There are many benefits of registering for a small-scale company. Read on to know what these are.
Benefits of small-scale industries registration
- Subsidy on ISO certification: Upon registration, businesses under SSI can get ISO certifications like ISO 9000 and ISO 14001 at a subsidized cost. Registered companies can get a reimbursement of charges paid for acquiring certifications like ISO-9000 and ISO-14001 up to a total of 75%, subject to a maximum limit of Rs.75,000.
- Better business loan deals: Registered companies can avail of collateral-free business loans under the Credit Guarantee Fund Scheme for Micro and Small Enterprises. This scheme was launched to help the small sector get collateral-free loans with ease. This is particularly helpful for new companies as they may not have any assets to show as collateral. Registered companies can also get a low business loan interest rate for high loan amounts on their loans.
- Low electricity bills: Small scale companies can get a concession on the electricity bill for their business space. All they need to do is submit an application to the electricity board of the area along with a copy of their registration.
- Subsidy on bar code: Every product requires a unique bar code, and small-scale businesses can get a subsided bar code for their products if they have been registered. The government offers a subsidy of 75% of the one-time registration fee and another 75% of the annual recurring fee for the first three years. This can be a significant saving for small businesses.
- Subsidized rates for trade fairs: To promote small companies and their products and services, the National Small Industries Corporation Ltd. provides exhibition space to businesses registered under SSI at subsidized costs. This can help companies cost-effectively reach customers. It also helps in marketing.
To sum it up
From a low business loan interest rate to reduced costs on bar codes, exhibition space, and certifications, SSI registration can provide businesses with an edge over others and help them succeed. Moreover, with lowered costs, businesses can use the savings to grow further and expand their company. So, go ahead and register your business and start benefiting from the various government schemes.