A Brief Introduction of Small Scale Industries
Table of Contents
What are small scale Industries?
Small scale industries is a type of industry that engage in services of micro, small scale manufacturing and production, providing services. Small scale industries provide employment and make use of local physical resources too, hence they are necessary for economy. These are the industries that manufacture and provide services using a certain amount of limited investment. These include industries like candles, paper bags, school products, small toys , beauty parlor etc. To avail the services offered by GOI, Small scale industry shall be registered.
Registration process for Small Scale Industries:
- Apply for provisional registration – In order to provide working capital to Small-Scale Industries, the certificate is given in pre- operative period. , a provision registration is given without physically inspecting the place of business.
- Start a business: A provisional certificate remains valid for 5 years. It is to be made sure that the operations of firm are being run during this time.
- Application for permanent certificate registration: If after this 5 years, the firm remains operational, the firm can apply for permanent certificate from ministry of Micro, small and medium enterprise.
ELIGIBILITY CRITERIA FOR SSI
Following are two types small scale Industries
Manufacturing
| Micro | The investment in plant and machinery shall be less than 25 lakh. |
| Small | The investment in plant and machinery can be 25 lakh or above but should not be greater than 5 crore. |
| Medium | The investment in plant and machinery can be Rs.5 crores or above but not exceed Rs.10 crores |
Services
| Micro | The investment in the equipment shall be less than 10lakhs. |
| Small | The investment in the equipment can be more than or equal to 10 lakh but does not exceed 2 crore. |
| Medium | The investment in the equipment can be more than 2 crore but less than 5 crore. |
| Revised MSME Classification | |||
| Conditions/Criteria | Micro | Small | Medium* |
| Investment & Annual Turnover | < Rs.1 Cr & < Rs.5 Cr | < Rs.10 crore & < Rs.50 crore | < Rs.50 crore & < Rs.250 crore |
Merits of registering your SSI
- The raw material is accessed easily.
- The credit is easily accessible
- Loans are offered at low rate of interest
- The incentives are given by state government
- Units of SSI can carry forward MAT for up to 15 years.
- Favor for government license and certificate.
DOCUMENTS REQUIED FOR SSI REGISTRATION
- Partnership deed, AOA and MOA.
- Address proof
- NOC by pollution control committee
- Bill copies of machinery and raw material and other things.
SOME DEMERITS OF SMALL SCALE INDUSTRIES
- Managerial issue
- Shortage of Raw material
- Inadequate finance
- Hassle in import and Export
- Scarce infrastructure
- Shortage of technology upgrade
- Shortfall in market support.
GOALS OF SMALL SCALE INDUSTIRES
- It gives the statistics of the units of SSI working in India.
- Generate various opportunity for employment
- Solves unemployment problems
- Equal distribution of wealth and income
- Improves standard of living of people
- Be self alliant
- Have lower regional imbalance
CHARACTERSTICS OF SMALL SCALE INDUSTRIES
- Short-range: These industries do not function on a significant scale.
- Ownership: these are mainly owned by a sole proprieter or a partnership
- Resources: these industries are mainly located where resources are available without much difficulty, saving the cost of transportation for utilization of resources.
- Flexibility: The dynamic environment doesn’t really affect these small scale Industries.
List of small scale Industries
- Repair services
- Leather products
- Hosiery and garments
- Metal products
- Rubber and plastic products
- Non-metallic mineral products
- Transport equipment and parts
- Repair services
- Miscellaneous manufacturing industries
- Electrical machinery and parts
- Food products
- Paper products and printing
- Cotton textiles
- Basic metal industries
- Jute, hemp, and Mesta Textiles
- Wool, Synthetic Fiber, silk textiles
- Machinery and parts for electrical goods
- Beverages and tobacco products
Various products supplied by Small scale Industries
- Hosiery goods
- Paints and Varnishes
- Preserved vegetables and foods
- Safety matches
- Domestic utensils
- Stationery items – Detergents and Soaps
- Plastic and rubber goods
- Leather and leather goods
- Toothpaste and toothpowder
- Sheet metal goods
- Ready-made garments
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