NSIC Registration

by CA. R. Hariharan Thangavel

April 10th, 2024

Benefits Extended to MSEs Having Valid NSIC Regigstration

Issue of the Tender Sets free of cost.
Exemption from payment of Earnest Money Deposit (EMD).
In tender participating MSEs quoting price within price band of L1+15 per cent shall also be allowed to supply a portion upto 25% of requirement by bringing down their price to L1 Price , where L1 is non MSEs.
Consortia facility for Tender Marketing.
358 items are reserved for exclusive purchase from MSEs

Every Central Ministries/Departments/PSUs shall set an annual goal of minimum 25 per cent of the total annual purchases of the products or services produced or rendered by MSEs. Out of annual requirement of 25% procurement from MSEs, 4% is earmarked for units owned by Schedule Caste /Schedule Tribes and 3% is earmarked for the units owned by entrepreneurs. SPRS registered units are integral part of the supply chain to Government

Eligibility

All Micro & Small Enterprises having Udyam Registration are eligible for registration with NSIC under its Single Point Registration Scheme (SPRS).

Micro & Small Enterprises who have already commenced their commercial production but not completed one year of existence.

The Provisional Registration Certificate can be issued to such Micro & Small Enterprises under Single Point Registration scheme with monetary limit of Rs. 5.00 Lacs

Fresh Registration Criteria

Micro and Small Enterprises (MSEs) involved in manufacturing & Services are eligible for registration.
Traders are not eligible for registration under this Scheme.
The validity of SPRS Certificate is of 2 years from the date of registration and there after renewed after every two years.
MSEs already commenced their commercial production (Start Ups) but not completed one year of existence are eligible for Provisional Registration for one year. MSEs can apply for full registration after completion of one year.

The validity of SPRS Certificate is of 2 years from the date of registration and MSE unit can apply for renewal 6 months before expiry of certificate.

Registration Fee

The registration Fee is based on the Turnover as per latest audited Balance Sheet of the Micro & Small Enterprise for the Registration, Renewal and any other amendment etc.

NSIC: Fee Calculator

Procedure for calculation & fixation of Monetary Limits of Micro & Small Enterprises

Monetary Limit indicates the value of single order that a NSIC Registered Unit can execute without paying any Security Deposit. It is therefore related to Order Value however it is fixed on the basis of a unit's Net Sales Turnover during the last three years reflected in the Audited Balance Sheets.

Monetary limit of the company is fixed on the basis of the unit's net sales turnover during the last three years reflected in the Audited Balance Sheets.

Monetary limit will be fixed on the basis of highest turnover during the last three year which may or may not be of last year provided the units installed and operating capacity has not been reduced.

In case there is no decrease in plant and machinery, then 50% of highest turnover during the last 3 years reflected in audited balance sheet will be the basis for fixation of monetary limit.

In case there is decrease in plant and machinery for more than 10%, the following will be considered: Where the turnover of the Enterprise has steadily increased over the last three years and the unit is in profit continuously, the Monetary Limit may be fixed at 50% of net sales turnover achieved in the last year.
In case the Company/Partnership concern/Proprietorship unit is in loss for one year out of past three years, their monetary limit will be fixed at 40% of their average net sales turnover.
Similarly, when the Micro & Small Enterprise is in loss for two years out of the past three years, the monetary limit will be accordingly fixed at 30% of their average net sales turnover of the past three years.
In the event of Micro & Small Enterprise being in loss throughout past three years, the monetary limit of the Unit will be fixed at 20% of the average net sales turnover of the Unit during the past three years.

The MSEs engaged in following activities are not eligible for registration under Single Point Registration Scheme

Manufacture of Medicine and drugs except MSE (unit) engaged in manufacturing and supply of Ayurvadic, Unani, Sidha and Homeopathic Medicines
Wholesale trading, Retail Trading or commission agents
The MSEs who have been black listed till expiry of such period.
The proprietor/partner/director/Karta of the MSEs has been convicted for any criminal offence.

FAQ

What is the prescribed limit for investment in Plant & Machinery for Micro Enterprise in MSMED Act?

Investment in plant & machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;

What is the prescribed limit for investment in Plant & Machinery for Small Enterprise in MSMED Act?

Investment in plant & machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees