Government Rules and Regulations for Small Scale Industries

A small scale business can be called as a project or venture which involves a small budget or is run by a small group of people. According to the definition provided by the government website for business, business.gov.in, a small scale industry (SSI) is a business setup in which the financial commitment towards infrastructure such as building & equipment, whether made as an owner or on rental or purchase basis, does not surpass Rs. 1 Crore. 

As per the rules of the government, you need not procure a license either from the state or central government to set up a small business venture anywhere in India. Nor, you need to register your small business. Registering your small scale business with the state of District Industrial Commission

Registration Process: 

• DIC is the primary registering center
• Registration is voluntary and not compulsory
• Two types of registration is done in all States. First a provisional registration certificate is given. And after commencement of production, a permanent registration certificate is given
• PRC is normally valid for 5 years and permanent registration is given in perpetuity   

Provisional Registration Certificate (PRC)

• This is given for the per-operative period and enables the units to obtain the term loans and working capital from financial institutions/banks under priority sector lending
•  Obtain facilities for accommodation, land, other approvals etc.
• Obtain various necessary NOCs and clearances from regulatory bodies such as Pollution Control Board, Labour Regulations etc.

 

Permanent Registration Certificate

•   Income-Tax exemption and Sales Tax exemption as per State Govt. Policy
•   Incentives and concessions in power tariff etc
•   Price and purchase preference for goods produced
•   Availability of raw material depending on existing policy

a small scale business can be called as a project or venture which involves a small budget or is run by a small group of people. According to the definition provided by the government website for business, business.gov.in, a small scale industry (SSI) is a business setup in which the financial commitment towards infrastructure such as building & equipment, whether made as an owner or on rental or purchase basis, does not surpass Rs. 1 Crore. - See more at: http://business.mapsofindia.com/india-business/small-business.html#sthash.VJGipu5r.dpuf