NSIC Registration for MSMEs

NSIC stands for National Small Industries Corporation, a Government of India enterprise established in 1955 to support and promote Micro, Small, and Medium enterprises (MSMEs). NSIC runs the Single Point Registration Scheme (SPRS), which allows qualified MSMEs to participate in government procurement. Through NSIC registration, a small business can access government tenders, financial support schemes, and marketing assistance.

NSIC registration is a voluntary certification under the SPRS that allows MSMEs to be listed with NSIC for government purchases. NSIC is an ISO-9001:2015-certified Public Sector Undertaking (PSU) under the Ministry of MSME. It aims to aid small businesses by providing integrated support in finance, marketing, and technology. An NSIC-registered unit can bid for government contracts reserved for MSMEs and avail of benefits like free tender sets and EMD exemption.

Is NSIC Registration Compulsory?

No. NSIC registration is not mandatory for MSMEs. It is an optional certification that businesses can obtain to gain additional benefits. However, it is highly beneficial for those wanting access to government procurement opportunities and related support programs. All applicants must first have a valid MSME (Udyam) registration; NSIC then supplements the Udyam number with its own SPRS certificate.

Registering with NSIC unlocks several key advantages for small businesses:

• More Government Business (SPRS Benefits):

NSIC's SPRS enables MSMEs to take part in state and federal government tenders. Tender sets are provided free to NSIC-registered units, saving costs on bidding documents. Registered units also get a price preference; if their bid is within 15% of the lowest price, they may be awarded up to 25% of the tender quantity at that price. Moreover, the government mandates that at least 25% of its annual procurement goes to MSEs, of which certain percentages are reserved for women and SC/ST-owned firms. Over 300 items are exclusively reserved for MSEs.

• Earnest Money Deposit (EMD) Exemption

Normally, bidders pay an Earnest Money Deposit to participate in tenders. NSIC-registered MSEs are fully exempt from EMD payment. This reduces upfront costs and encourages participation.

• Public Procurement Policy Advantages

By NSIC registration (SPRS), small businesses enjoy the Public Procurement Policy’s benefits. Along with the price-preference scheme above, they get tender fee waivers and priority in procurement.

For example: government buyers must procure 4% of their needs from SC/ST-owned MSEs and 3% from women-owned MSEs, which NSIC facilitates by maintaining a registry of such enterprises.

• Financial Support for Raw Materials and Bank Credit: NSIC runs additional schemes beyond SPRS. Its Raw Material Assistance (RMA) Scheme provides credit support for bulk purchases of raw materials. Through NSIC’s Credit Facilitation Scheme, it has MOUs with banks to offer subsidized working capital and term loans to NSIC units. NSIC also assists MSMEs in obtaining loans such as term, cash credit, and overdraft. This support makes inputs more affordable and eases cash flow.

NSIC’s Single Point Registration Scheme (SPRS) is a cornerstone program to connect small enterprises with public procurement.

SPRS is an initiative by NSIC that allows eligible Micro & Small Enterprises (MSEs) to bid for government tenders. Any MSE with Udyam (MSME) registration can apply for SPRS. Once certified, the business is listed on the NSIC portal and receives an SPR certificate, valid for 2 years. The scheme was created by the Ministry of MSME and supports the Public Procurement Policy for MSEs.

Provisional Registration: MSEs that have been operating for less than a year can apply for Provisional Registration. This is valid for 1 year, even if the business doesn’t have performance data yet.

To qualify for NSIC-SPRS registration, a business must meet certain criteria:

1. Valid Udyam (MSME) Registration: Only formally registered MSEs can enroll. You must have a current Udyam registration certificate (formerly Udyog Aadhaar) as proof of MSME status.

2. Micro and Small Enterprises (Full Registration): Only units classified as micro or small are eligible. Businesses had to have been in operation for a minimum of a year.

3. Provisional Registration for Startups: New MSMEs (startups) less than 1 year old may get provisional enlistment. These units can receive an SPRS certificate up to a maximum monetary value of ₹5 lakh for one year. This lets emerging businesses participate early. They can seek full registration after a year.

4. Entity Types: Eligible entities include Proprietorships, Partnerships, LLPs, Private Ltd and Public Ltd companies, cooperatives, etc. The enterprise must be legally registered in one of these forms.

5. Operational Business: The unit must be actively operating (producing goods or providing services). It should have audited financial statements for the last 3 years and facilities (plant & machinery) in place. A track record of business operations is required by NSIC.

• Newly established MSEs can obtain provisional NSIC registration with relaxed documentation, allowing procurement access of up to ₹5 lakh even without a 3-year operational history.

6. Compliance and Non-Blacklist: The enterprise should be compliant with statutory regulations (tax filings, GST, labor, etc.). Firms that are blacklisted by any government department or whose key personnel have criminal convictions are not allowed.

In short, any operational manufacturing or service MSE (with Udyam reg.) can apply. Traders and purely trading units, however, cannot apply (see below).

NSIC-SPRS is only for manufacturers and service providers. Certain entities are explicitly ineligible:

1. Trading Activities: Units engaged solely in wholesale or retail trade, or acting as commission agents, are not eligible for SPRS. The scheme targets production and service development.
2. Excluded Products: Enterprises manufacturing allopathic medicines and drugs are excluded. (Ayurvedic, Unani, Siddha, and Homeopathic makers are allowed).
3. Blacklisted Firms: Any MSE blacklisted by government agencies cannot register until the ban is lifted.
4. Criminal Background: If the proprietor/partners/directors have criminal convictions (e.g., fraud, economic offenses), the unit is disqualified.

Prepare the following core documents and information:

1. PAN Card: Copy of the business (or proprietor’s) PAN.
2. Udyam Registration Certificate: Copy of MSME/Udyam registration.
3. Plant and Machinery List: Details of major plant, machinery, and equipment (make, model, value).
4. Premises Proof: Ownership deed, or Lease/Rent agreement of business premises.
5. Quality Control Facilities: List of testing and quality control equipment in the unit.
6. Electricity Bill: Recent utility bill for the factory/office address.
7. Financial Statements: Audited Balance Sheet, Profit & Loss, Fixed Assets & Revenue schedules for the last 3 years (signed by CA).
8. Operating Results: Chartered Accountant certified statement of operations for the last 3 years.
9. Bankers’ Report: Bank letter reporting your financial status (as per NSIC’s proforma).
10. Declarations: Self-declaration accepting SPRS terms, and other required signed forms.

A. Additional Documents for Partnerships & LLPs

In addition to the above, a partnership or LLP must submit:

1. Partnership Firm: Partnership deed; General Power of Attorney (as per annexure).
2. LLP: LLP Agreement (Form 3); Form 4 (partners list/changes); Form 2 (registered office details).

B. Additional Documents for Private/Public Companies

Along with the common documents, companies need:

1. Company Details: Memorandum and Articles of Association (MoA/AoA);
2. Directors’ Info: List of directors and their shareholdings;
3. Board Resolution: Copy of the board resolution authorizing the application.

Tip: It helps to organize files in advance. Ensure scanned copies are clear and free of errors. Match each document to the application checklist to avoid missing any items.

Follow these simple steps to register your business with NSIC successfully.

Step 1: Get Your Udyam Registration Number

Before NSIC, the unit must obtain MSME (Udyam) registration online. Visit the Udyam portal (udyamregistration.gov.in/UdyamRegistration.aspx), and apply using your PAN and other details. Once granted, you will have a Udyam registration number. Keep this certificate handy.

Step 2: Register on the MSME DataBank Portal

After getting your Udyam registration, your business profile needs to be added to the Udyam MSME Portal.

• Visit the portal and log in using your Udyam number and PAN.
• Complete your business profile with details about your products/services, plant & machinery, and past performance. This step ensures your business is listed in the official MSME DataBank, a prerequisite for the NSIC application.

Step 3: Fill out the Online NSIC Application on the SPRS Portal

• Visit the NSIC Official Website: Go to the NSIC website and navigate to the “Single Point Registration Scheme” section.
• Select “Fresh Online Application”: Choose the option to start a new application.
• Complete the Seven-Part Form: Fill out the form with details about your business, turnover, and items you wish to register.
• Upload Scanned Documents: Attach all required documents in the specified format.
• Pay the Registration Fee: The application fee depends on your business turnover. Micro enterprises pay lower fees than small enterprises. A refundable security deposit might also be required.
• Generate SPR Reference Number: Once the application is submitted successfully, you will receive a unique SPR Reference Number for tracking your application.

Step 4: Third-Party Technical Inspection

After applying, NSIC will assign a licensed inspection agency (e.g., Rail India Technical and Economic Service Ltd. (RITES Ltd.) or Central Design and Development Corporation (CDC)) to visit your unit. They will inspect your premises, machinery, and records. Ensure all details in your application match what the inspector finds. The inspection report is crucial for approval.

Step 5: Approval and Receiving Your NSIC Certificate

Once the inspection is successful, NSIC will approve your application. You can download the SPRS certificate (NSIC enlistment certificate) from the portal. A physical certificate is also sent by post. The certificate is valid for 2 years from the date of issue.

Please note that the NSIC certificate must be renewed every 2 years to continue receiving benefits.

The NSIC registration involves three types of fees, all based on your enterprise’s turnover:

1. Government Registration Fee: For new registration, the fee is:
   • Micro Enterprises: ₹3,000 if turnover ≤ ₹1 Crore; add ₹1,500 for each additional ₹1 Cr beyond that.
   • Small Enterprises: ₹5,000 if turnover ≤ ₹1 Crore; add ₹2,000 for each additional ₹1 Cr beyond that.
   • The total fee is capped at ₹100,000.
2. Inspection Fee (Payable to the Agency): A fee of ₹2,000 (Micro) or ₹3,000 (Small) is paid directly to the third-party inspection agency (e.g., RITES) to cover the costs of their technical audit.
3. Professional Fee (NSIC's Service Charge): This is an additional service fee of ₹6,000 (Micro) or ₹8,000 (Small) charged by NSIC for facilitating and processing the inspection report.

All fees attract applicable taxes. Note: These are government fees. If you hire a consultant or agent to help, they may charge an additional professional fee. That is separate and depends on the consultant, not NSIC’s schedule.

NSIC provides fee concessions to encourage under-served groups and regions:

1. SC/ST-Owned Enterprises: Enterprises owned by Scheduled Castes or Scheduled Tribes pay only a nominal fee of ₹100 + GST for registration. (This concession applies for the financial years 2021–22 through 2025–26)
2. North Eastern Region (NER): MSEs located in India’s North East get 20% OFF the NSIC registration charges. (Inspection fees remain unchanged.)
3. Special Credit Linked Capital Subsidy Scheme (SCLCSS): This scheme offers a 25% capital subsidy on institutional finance to existing and new SC/ST-owned MSEs for purchasing plant and machinery. It helps reduce the financial burden of acquiring new equipment and expanding business operations

Once issued, the NSIC SPRS certificate is valid for 2 years from the date of registration. During this period, your business enjoys all SPRS benefits. To continue receiving these benefits, you must renew the certificate every 2 years.

• Apply Early: Renew your certificate 6 months in advance to avoid delays.
• Early Renewal Benefits: Get a 50% discount on the renewal fee compared to the fresh registration fees when you apply early.
• Required Documents: Submit updated documents (e.g., latest audited financial accounts) and pay the renewal fee based on your turnover.
• Simple Process: If there are no major changes in your business, the renewal process is straightforward and can be done online.
• Missed Deadlines: Missing the renewal deadline may require re-application as a fresh case, so it’s wise to set calendar reminders.

• Incomplete/Incorrect Documentation: One of the biggest hurdles is missing or mismatched documents.

Solution: Always double-check that each required document (PAN, Udyam, bills, financials, etc.) is present, legible, and matches the application details. Prevent this by using the NSIC checklist and having a CA review the package.

• Underestimating the Process Complexity: NSIC registration involves multiple steps and departments. Many stalls are at the MSME Databank registration or inspection stage.

Solution: To avoid delays, familiarize yourself with each step (see above), start early, and consider professional help if needed.

• Missing Renewal Deadlines: After getting certified, some businesses forget to renew on time and lose SPRS benefits.

Solution: Mark the expiry date in advance and plan renewal well before expiry.

Beyond SPRS, NSIC runs several support schemes for MSMEs:

1. Marketing Assistance Scheme

NSIC supports MSMEs by organizing trade fairs and exhibitions both domestically and internationally, often at subsidized rates. Some key highlights of the scheme include:

• India Pavilions and Technology Marts: NSIC arranges dedicated spaces for Indian businesses to showcase their products at international events, helping small firms connect with global buyers.
• Subsidized Exhibition Fees:
  • Micro units: Up to 75% subsidy on exhibition space charges.
  • Small units: Up to 60% subsidy on exhibition space charges.
  • Medium units: Up to 25% subsidy on exhibition space charges.
• Marketing Consortia: NSIC helps form marketing consortia where MSMEs can come together to bid on tenders. This collaboration boosts competitiveness and increases chances of winning government contracts.

2. Raw Material Assistance Scheme (RMA)

This provides credit-linked finance for purchasing raw materials. NSIC advances money (via BG or letter of credit) so MSEs can buy materials (indigenous or imported) for up to 90–180 days. It saves liquidity and lets MSMEs exploit bulk discounts. NSIC’s RMA scheme handles all documentation for setting up Letters of Credit for imports, further simplifying imports.

3. Technology Incubation Scheme

NSIC runs Training-cum-Incubation Centers across India. These incubators equip first-generation entrepreneurs with technical and management skills. They provide workplace labs, training on modern manufacturing techniques, and mentoring. This helps new startups or MSEs adopt new technologies and scale up production.

4. International Cooperation Scheme

NSIC helps MSMEs enter global markets. It arranges participation in international exhibitions and trade fairs (often with subsidies) and facilitates bilateral linkages. Under its export promotion efforts, NSIC provides export-related assistance and connects small exporters with overseas buyers. It also promotes joint ventures and technology transfers between Indian MSMEs and foreign partners, boosting international collaboration.

Each scheme aims to build capacity, market access, or financial strength for MSMEs beyond just procurement.

The NSIC Registration Certificate is issued under the Single Point Registration Scheme (SPRS) by the National Small Industries Corporation (NSIC). It empowers Micro and Small Enterprises (MSEs) to access public procurement benefits like EMD exemption, free tender sets, and priority sourcing.

How to Download the NSIC Registration Certificate?

To download the certificate:

• Visit nsicspronline.com/HomeNew.aspx
• Log in using your PAN and Udyam Registration Number.
• Navigate to the certificate section. If your registration is approved, a digital copy will be available for download.
• A physical certificate is also dispatched by NSIC to your registered address.

How to Check the Status of NSIC Registration Certificate?

To check your application status:

• Go to the nsicspronline.com/appCompany/CompanyStatusTrack.aspx.
• Enter your SPR reference number.
• The portal will show whether your application is under review, approved, or requires action.