Micro, Small, and Medium Enterprises (MSMEs) are the most in-demand sector in India. The Government of India set up the National Small Industries Corporation (NSIC), a Mini Ratna PSU under the Ministry of MSME, to empower and promote these enterprises. The largest scheme of NSIC is its Single Point Registration Scheme (SPRS), which helps businesses qualify for government tenders and get benefits.
NSIC registration supports MSMEs in their access to big public procurement opportunities, as well as grants several other exemptions and advantages for MSMEs under the Public Procurement Policy. This blog will help you understand NSIC registration, its legality, its eligibility, the application process for NSIC registration, and the documents required to obtain an NSIC Registration Certificate.
What is the NSIC Registration Certificate?
The certificate is issued under the single point registration scheme (SPRS) to eligible Micro and Small Enterprises (MSEs). It entitles MSEs to participate in government procurement tenders and to benefit from such facilities as exemption from payment of tender fees, EMD exemption, and priority in procurement.
It also allows for granting of government contracts under NSIC registration with an emphasis on leveling the playing field for small industries to compete with larger enterprises. This certification is valid for 2 years, at which point it can be renewed subject to ongoing eligibility and performance.
What is NSIC Registration and Why is it So Important?
The NSIC registration focuses on the MSEs and intends to provide them with a rise against more contracts in the public sector and the equal opportunity for growths in the business. Following are some major advantages of having NSIC Registration Certificate:
- Government Tenders: Exemption from EMD (Earnest Money Deposit)
- No cost issuance of tender documents DO from the government departments.
- Public Procurement Policy for giving preference to companies for awarding government contracts.
- 25% Procurement reservation for the total annual procurement by Central Government Ministries, Departments, and PSUs from the registered MSEs.
- Assistance for participation in fairs conducted by the government and publicity support schemes.
All these advantages make NSIC registration certificate a powerful tool in the hands of budding small businesses who wants to tap the public procurement market.
The Law and Governance
The NSIC Registration process is regulated by the Single Point Registration Scheme (SPRS) operationalized by the NSIC under the administration of the Ministry of Micro, Small and Medium Enterprises. The scheme is in line with the Micro, Small and Medium Enterprises Development Act, 2006 and the Public Procurement Policy for MSEs, 2012, as notified by the Government of India.
As per this policy, 25% of the total annual purchases of products and services by every Central Ministry/Department/PSU should be from MSEs. Of this, 4% has been earmarked for MSEs owned by SC/ST entrepreneurs and 3% for women entrepreneurs.
NSIC Registration Eligibility Criteria
To get NSIC registration, eligible applicants are Micro or Small enterprise units in the manufacturing/production/service agreement and have a Udyam Registration (earlier known as Udyog Aadhaar). In addition, the following eligibility requirements apply:
- Commercial production/service/activities should have commenced in the unit.
- The enterprise must possess appropriate statutory and regulatory licenses necessary to conduct business.
- The business should be registered for at least a year (in case of full registration). But for startups and an enterprise with a commercial invoice, provisional registration is applicable.
- The unit has to be “in operation” at the time of inspection by NSIC officials.
Types of NSIC Registration
There are mainly two types of registrations offered by NSIC under SPRS:
- In the conditions of MUDHRA (PMEGP), provisional registrations are given for new Micro and Small Enterprises for 1 year and rely upon project reports or commercial invoices.
- Permanent Registration—This is for units in operation for at least one year and with eligible credentials. It is valid for two years and subject to renewal.
The decision whether to apply for provisional or permanent registration will depend on the age and activity of the enterprise.
Get NSIC Registration Certificate Online: Step-by-Step Process
NSIC or its authorized agencies physically inspect the unit after the online application. Following is the step-by-step procedure for NSIC registration:
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Visit NSIC Website: Go to https://www.nsic.co.in and navigate to the “Online Registration” section under the Single Point Registration Scheme (SPRS).
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Sign Up / Login: Create an account or log in using your credentials on the NSIC Online Registration Portal.
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Fill out the Online Application Form: Complete the application with details about your enterprise, products/services, financials, and Udyam Registration number.
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Upload Required Documents: Upload scanned copies of necessary documents like Udyam certificate, audited financials, GST, PAN, etc.
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Pay the Registration Fees: Pay the applicable fees online (based on your turnover) for registration and inspection.
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Inspection & Approval: NSIC assigns a third-party inspection agency. Once your unit is verified and approved, you’ll receive the NSIC Registration Certificate online.
Essential Documents for NSIC Registration
To finalize your registration, applicants need to provide these required documents:
- Udyam Registration certificate
- GST registration certificate
- PAN card of the enterprise
- Documents of ownership of premises or lease/rent agreement
- Financial statements (audited) for the preceding one financial year (in case of full registration)
- Ordinance declaring investment in plant and machinery
- Testimonial from customers or clients
- ISO certification copy (if applicable).
- From the Banker’s Certificate or bank report on the financial status of the unit
To ensure the timely and successful filing of an application, all necessary documents should be filed correctly and in full.
Fees for NSIC Registration
NSIC has a non-refundable registration fee, which varies according to the enterprise’s annual turnover. The fees are as follows:
- For revenue margin up to ₹1 Crore: ₹5,000 + GST
- For turnover in excess of ₹1 Crore: ₹5,000 + ₹2,000 per additional crore, not exceeding ₹1 lakh + GST
Inspection costs are additional, and they vary based on the agency performing the inspection.
The validity period and the renewal process of the NSIC certificate are as follows:
The validity of the NSIC certificate is for two years from the date of issue and needs to be renewed prior to the expiry in order to avail of the benefits in procurement. Renewal includes submitting updated financial and statutory documents and a new inspection report.
The unit will be de-registered if they fail to renew on time, and lose all benefits under the procurement policy.
Conclusion
The Micro and Small Enterprises enter the Government procurement ecosystem through NSIC registration. It not only adds to credibility but also gives exemptions, preferences, and access to large-scale business opportunities.
The registration for NSIC registration certificate for the purpose of availing of government schemes or making government procurements including those from defense or other sectors is a well-defined and streamlined process which can be completed relatively easily if the application complies with eligibility and documentation criteria.
NSIC registration can be a strategic business opportunity for start-ups wanting market access and MSEs wanting to secure government contracts.
