MSME registration in Bangalore
Small scale industries play a vital role in the economic development of the nation. Small scale industries are exempted from the payment of income tax and it is allowed for a period of five years from the date of commencement.
The small scale industries can avail the tax benefits only after fulfilling the following criteria. They are:
- Small scale unit should not be formed by the reconstruction or splitting of the business which is already in existence.
- The accounts should be handled by the chartered accountant.
- Need to employ 10 or more workers in the manufacturing unit with power.
- Machinery or plant should not be transferred to the new business which has been previously used for any purpose.
Advantages of small scale industries:
Opportunities for entrepreneurship
Entrepreneurs who are with limited capital can set up the SSI which requires lower investment and less capital in machines and technology. Small scale industries are best suitable for the small entrepreneurs who can contribute greatly to the nation’s development.
Small scale industries can contribute nearly 40 percent to the industry of exports in our country. Mostly SSI is in the product manufacturing unit and the large scale industries can export the product to the SSI. Thus they can contribute directly or indirectly to the exports and can earn the valuable foreign exchange.
Contribution to industrial output:
This contributes a significant portion of the industrial output to the country. They are the ones who produce a large number of consumer goods as well as the industrial components in huge volume and satisfy the needs of the consumers. Consumer goods which are produced by SSI are very cheaper and their ultimate aim is to satisfy the requirements of the poorer section.
Small scale industries are very good in the usage of locally available resources in a productive manner. Instead of keeping the small amount of savings as idle, it can be utilised by setting up of small enterprises, this may increases the investment and the capital formation in the economy.
SSI adopts lean production method which refers as it offers the better quality and a variety of products at a lower cost. This is comparatively more cost efficient with the large scale industries.
Customers prefer products that tailored to their specific needs. They always demands for a unique product. Products have to be customised as per the consumer needs. Customisation is best suitable for the small scale industries, whereas for large scale industries, it requires large scale of production that would not be possible.
Documents required for small scale industries:
- Passport sized photographs of partners/proprietors/directors, as the case may be.
- In case of private company, copy of the Memorandum and articles of association along with the certificate of incorporation has to be submitted. One of the directors in a company needs to sign in the application form for authorising for the resolution and he/she needs to appear for an interview.
- NOC (No objection Certificate) from the landlord or the rental receipt has to be provided along with the proof of ownership.
- Consent letter has to be obtained from the pollution control committee, and then only provisional registration would be allowed in the industrial areas.
- Photocopy of the partnership deed should be produced in case of partnership unit.