Small Scale Industries in Bengaluru, Karnataka have been playing a crucial role in the socio-economic development of the country. They have not only generated employment opportunities but have also helped in the infrastructure building, skill-training, alleviation of poverty, protection of cultural heritage and have significantly increased exports in the country. Their total contribution is around 8% of the country’s total GDP, with around 45% of the total manufacturing output in the country, and accounts for 40% of the country’s exports and are known as the ‘Backbone of the Indian economy.’
Recognizing the importance in the growth & development of the country, the Government of India has set up the National Small Industries Corporation (NSIC) for providing necessary assistance, encouragement, and support to the Small Scale Industries (SSI) in Bengaluru, Karnataka by acting as an intermediary between the Ministry of Micro, Small &Govt. of Bengaluru, Karnataka and SSIs. As a result of which there are as many as 6.3 Crores, SSIs registered in India to date
Karnataka has successfully been able to establish itself as a nucleus of the Knowledge, innovation and research in the Asian region, with more than 400 super technologically equipped R&D centres functioning here perfectly. It is the largest exporter of software in India, which makes it the principal in the technological sector in the country. This became the first ever state to roll out its Aerospace policy as a result now aircrafts and space craft ventures based here contribute about 65% of aerospace linked exports from Indian region. It could develop Hi-tech Defence and Aerospace Park in a sprawling area of 1,214 ha equipped with superior infrastructure adjacent to Kempagowda International Airport, Bengaluru which includes 102 ha area of Aerospace SEZ. Country’s first private Aerospace SEZ of 121 ha area which is developed and established by the headquarter office of Aequs Global at Karnataka.
The state is well looped with all the central markets of the world with the help of 2 international airports. 300 km of coastline stretched on the eastern part of the state along with a major port at Mangaluru provides exposure to the sea route as well. It is privileged to come under Chennai-Bengaluru Industrial Corridor and Bengaluru-Mumbai Economic Corridor and gain all the supplementary benefits of the crossover. With strong infrastructural base of Pavagada Solar Park which is the largest in the country with an installed capacity of 2000 MW, however till now only 1400 MW is operational, i.e. still there is a scope for further expansion.
In totality Karnataka is a most enduring destination for investments for a variety of sectors like heavy machinery, auto-electronics, textile industries and food processing industries. Coffee is the state product and makes it the largest producer of coffee in India. Karnataka is the fourth largest contributor in the national export basket amounting to around $17.4 bn in 2018-19 i.e. approximately 5.3% of the total export corpus of the country. The exorbitant privileges of the state and steep growth in each and every sector brought inflow of $40.7 bn FDI during 2000 to 2019 which makes it the third highest.
Investment opportunities in Karnataka value nearly $719.97 bn, comprising of 936 projects out of which 22 are private and 914 are owned by the Government, with 177 promoters involved, spread across 31 districts which makes Karnataka a lucrative choice among investors in the commercial, technological and industrial segments.
However, for the purpose of recognition and becoming eligible to receive benefits specifically made available for SSIs in Bengaluru, Karnataka, the SSIs must obtain NSIC registration. Apart from the above–mentioned functions, the NSIC offers the following to SSIs in Bengaluru, Karnataka-
- Offering Single Point Registration system to SSIs for ensuring their participation in government purchases;
- Running Developmental Schemes for MSMEs for better competitiveness;
- Integrated support services to MSMEs concerning financing facilities, marketing & technology;
- Offering programs for skill development through training to SSIs;
Eligibility Criteria for NSIC Registration in Bengaluru, Karnataka
- Micro and Small Enterprises (MSEs) in Bengaluru, Karnataka involved in manufacturing & Services are eligible for registration. The revised definition of MSME under the Micro, Small & Medium Enterprises Development Act 2006, provides for the following –
- Micro Enterprises- Enterprises in Bengaluru, Karnataka holding an investment in Plant & Machinery up to Rs. One crore and an annual turnover up to Rs. Five crores.
- Small Enterprises- Enterprises in Bengaluru, Karnataka holding an investment in Plant & Machinery up to Rs. Ten crores along with an annual turnover up to Rs. Fifty crores.
- Medium Enterprises- Enterprises in Bengaluru, Karnataka possessing an investment in Plant & Machinery up to Rs. Fifty crores along with an annual turnover up to Rs. Two hundred Fifty crores.
- Traders shall be ineligible for registration under the NSIC Scheme.
- Such SSI must have already initiated their commercial production but shouldn’t have completed one year from the date of commencement shall qualify for SSI provisional registration after which such SSI will eligible for obtaining full registration.
Process of NSIC Registration in Bengaluru, Karnataka
- Offline Process of Registration in Bengaluru, Karnataka-
As the first point for the NSIC registration process, the applicant shall be required to either download the ‘Point of Interest’ form by accessing the website www.nsicspronline.com or get the application from the local NSIC Zonal/Branch/Sub Branch and Sub Office/Extension office of NSIC, along with the prescribed documents and requisite fee which will depend upon the net sales turnover as per the latest audited financial statements of the MSME for SSI registration & renewal purposes.
Once the application is submitted, such application shall be forwarded to the inspection authority along with a duplicate copy of the G.P. registration application form along with documents and inspection charges remitted in favor of the inspection agency along with a formal request for undertaking and completing the technical inspection of the applicant enterprise and forwarding their opinions in this matter.
Finally, the NSIC authority gets satisfied with the application contents and the opinions made by the Inspection authority, the NSIC authority may grant Single Point Registration Certificate (SPRS) to such application.
Online Process of Registration in Bengaluru, Karnataka-
Provided below is the step-by-step process of the NSIC registration in Bengaluru, Karnataka-
- Firstly, the applicant SSI will be required to obtain the unique Udyam registration in India, by getting themselves registered under the MSME portal by accessing https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.html.
- Once a unique Udyam Aadhaar number is obtained, such MSME will be required to get themselves on the NSIC portal by providing PAN number and the unique Aadhaar number (UAM), under the Single Point Registration System.
- Click the application form fill in the requisite details and attach all required documents with prescribed documents in pdf form.
- Submit the requisite fee dependent upon the net sales turnover as per the latest audited financial statements of the MSME for SSI registration & renewal purposes and submit the form.
- On verification of the application and the attached documents, the NSIC authority may accept the application and the certificate could be downloaded from the portal online and will also be sent by post.
Benefits of NSIC registration in Bengaluru, Karnataka
- Availment of Government Benefits for SSIs in Bengaluru, Karnataka-
MSEs who are registered under the NSIC registration in Bengaluru, Karnataka become eligible to seek benefits as offered under the “Public Procurement Policy for MSEs (2012)”, as directed by the Government of India.
- Allotment Of Tenders Free Of Cost
Obtaining registration in Bengaluru, Karnataka under NSIC allows the MSEs to be allotted tenders without any applicable costs;
- No requirement of Earnest Money Deposits
MSMEs who have acquired NSIC registration in Bengaluru, Karnataka have been exempted from the requirement of making payment of Earnest money deposits, which is generally required from the bidder to assure his seriousness towards the tender contract.
- Helps in the Growth of SSI business in Bengaluru, Karnataka
For ensuring the growth and development of the MSEs, the NSIC has reserved as many as 358 items to be purchased from them only.
- Assistance in Fair Tender Allotment to the SSIs
NSIC allows fair tender bidding to SSIs for the allotment of tenders at lesser prices.
- Quota Reservation for SSIs in Bengaluru, Karnataka-
To benefit SSI units involving SC/STs, a total of 4% supplies have been reserved out of the total 20% annual supplies requirement from the MSEs
- Overall Growth & development of the SSIs in Bengaluru, Karnataka
To provide encouragement and necessary training assistance to the MSMEs in Bengaluru, Karnataka, the NSIC undertakes various programs for resolving problems such as Marketing, Technology, Finance, and other similar fields.
- Validity of NSIC Registration in Bengaluru, Karnataka
The NSIC registration certificate granted under the Single Point Registration System shall be valid for two years after a careful review and continuous verification of the Commercial & Technical Competencies (CTC) of such registered MSME.
MSMEs who have obtained an MSME certificate in Bengaluru, Karnataka but have not completed one year from the date of commencement of their commercial production will be issued a provisional certificate under SPRS with a monetary limit of 5.00 lakh and will be valid for 1 year.
NSIC SPRS Registration Fees in Bengaluru, Karnataka
NSIC registration & renewal fees in Bengaluru, Karnataka will vary depending upon the annual turnover and the latest audited balance sheet and shall not include the inspection fee charged by the inspection authority and shall be levied as follows-
| Purpose | Turnover Limit | Fee |
| 1. For Fresh Registration of Micro & Small Enterprises
For Micro Enterprises |
i. Turnover Up to 100 lakh
ii. Turnover above 100 lakh |
Every Micro Enterprise- Rs. 3000/-
Every Small Enterprise- Rs 5000/-
For Micro Enterprise Rs. 3000 plus Rs. 1500 for every additional turnover above Rs. 100 Lakh;
For Small Enterprise Rs. 5000 and Rs. 2000 for every additional turnover over Rs. 100 Lakh |
| 2. For amendments/changes in stores in terms of quality or quantity, or the purpose of issuance of change in the monetary limit or any other changes in NSIC certificate | 50 % of the proposed changes in Step i. for MSME, with a maximum limit of Rs. 50,000. | |
| 3. Renewal of the G.P. certificate issued with a validity period of two years | 50 % of the proposed changes in Step i. for MSME, with a maximum limit of Rs. 50,000. | |
| 4. For MSE’s located in North-Eastern Regions in Bengaluru, Karnataka | 20% concession in Fee. |
Note- Such fee charged shall be exclusive of the GST payments and shall not be above the value of Rs. 1 Lakh in any case.
Documents Required for Registration in Bengaluru, Karnataka
- Copy of self-attested documents (in duplicate) such as PAN, Udyog Aadhaar Memorandum, and the details of the MSE;
- Declaration by the MSE that such entity has obtained registration under the MSME portal;
- Copy of the proof of ownership of the business premises, and other important items such as Plant& Machinery , Equipment’s, and other tools;
- Copy of the performance statement as provided under Annexure F;
- Copy of the self-attested copy of ownership documents of the registered premises of the business entity;
- Copy of sale deed (where applicable)
- Copy of declaration from the directors of the MSE they do/do not have any link with large-scaled units;
- Further, the documents provided below must be signed by the authorized person of the MSE-
- Copy of the PAN & Aadhaar number of such person;
- Copy of latest electricity bills;
- Copy of the proof of the existence of business at least since last three years;
- A list of the total number of employees working in production/services of the MSE;
- Details on the quality control measurement practiced by the entity;
- Copy of the latest audited balance sheet & P&L statement of the organization;
Process of Renewal in Bengaluru, Karnataka
On the expiry of the NSIC registration in Bengaluru, Karnataka after the expiry of two years (one year in case of provisional registration), the entity will be eligible to apply for the renewal of registration either through online mode or by directly contacting the local NSIC office in Bengaluru, Karnataka.
Where the applicant makes an application for renewal of registration before the expiry of the SPRS certification, he/she will be eligible to get up to 50% concession on the renewal fee.
On completion of the process, the renewed certificate will be available on the NSIC portal and a copy of the physical certificate will be sent through post to the MSE in Bengaluru, Karnataka.
Conclusion
Thus, the NSIC registration is an important and beneficial registration for the MSEs which provided them with multiple benefits and necessary assistance from the Government such as training, finance and marketing assistance, free tender allotment, etc. and many more, which can also help in the ultimate growth of the MSE into a bigger corporation.