Difference between NSIC and MSME

NSIC is the enterprise of the Indian Government which is created to support and promote the Indian MSMEs.  It has been created in the year 1955 and has various technical centers and offices around the country.

The mission of NSIC – The purpose of NSIC is to promote and support the MSME sector by providing them with integrated support services like marketing, technology, finance and other services.

The Vision of MSME – The vision of the MSME is to be a premier organization fostering the growth of Micro, small and medium enterprises.

MSME

The MSME sector is governed under the MSMED (Micro, small and medium enterprises Development) Act, 2006 with a perspective to support the MSME sector via various schemes, subsidies and incentives.

By the MSMED Act, 2006, following are the two categories under which the MSME Sector has been divided:

1. Manufacturing Enterprises
   
2. Service Enterprises
   

What is the difference between the MSME and NSIC in terms of Benefits?

The MSME and NSIC differ from each other in certain aspects which are listed below:

Benefits for NSIC

In terms of Marketing Benefits

The Companies registered under the NSIC can participate in International fairs organized in other countries.

• The NSIC registered companies can also participate in the trade fairs, business fairs and exhibitions organized in India.
  
• The Companies registered under the NSIC can also participate in the Tech-Mart exhibitions organized by the NSIC.
  
• The Companies who has NSIC Registration are also allowed to participate in Buyers-sellers meet with other industries and government associations.
  

In terms of Financial Support

• The companies registered under the NSIC enjoy the government assistance in obtaining the raw materials from government agencies and National and International sellers.
  
• Also, the companies registered under the NSIC get the assistance form bank in availing the credit facilities.
  

In terms of Technology Support

• The companies registered under the NSIC can also take help from the Government for new technologies and innovation.
  
• These companies can also get training in skills development.
  
• Assistance from the Government in computer-aided product designing.
  

Benefits for MSME

In terms of Financial aid –

As per the Credit Guarantee fund Scheme, the MSME registered companies can avail collateral-free loans from the banks and other financial institutions.

• The MSME companies have higher chances of getting tenders from the Government of India.
  
• They also enjoy tax benefits as per the nature of the business type.
  
• Also, the MSME companies are exempted from the Excise duty in their initial years, depending upon the business type.
  
• They also get financial advantages in terms of Octroi refunds and Stamp duty benefits.
  
• The MSME companies get concession in their electricity bills after they make an application to the Electricity Departments.
  
• The MSMEs are relieved in terms of delayed payments from their buyers. Also, they have the right to charge a rate of interest on late payments.
  
• The MSMEs get 50% subsidy on their patent certification after making an application to the concerned department with MSME Certificate.
  
• The MSMEs get the government aid in every way to expand their business on National and International platform. They are also eligible for the IPS (Industrial Promotion Scheme).
  
• Exemption of 1% on the interest rates of bank overdrafts.
  

What are the Documents required for the NSIC and MSME?

Documents needed for NSIC

• Owners Identity proof such as (Aadhar card, Voter ID and Driving License)
  
• PAN card of Directors
  
• Company’s Incorporation Certificate.
  
• Address proof the registered Office (Possession Letter and Lease Agreement)
  
• Utility Bill, in case of owned land
  
• Rent Agreement and NOC from Landlord, if applicable
  
• AOA (Article of Association).
  
• Memorandum of Association
  
• Description of Product and service for the proposed NSIC registration
  
• Banker’s Statement to specify the financial position of the Company as per Application Form Performa (F)
  
• Measures for Quality Control Standard testing installed in the Company
  
• Past three years statement of Operations, sealed by CA.
  
• Financial Statements (Profit& Loss A/C, Balance Sheet, and Trading A/C) of the Company signed by an authorized person.
  
• Copy of MSME Certificate
  
• Declaration regarding dissociation with large companies.
  
• Receipt of equipped Plant and machinery.
  
• Copy of BIS license, if any.
  
• Description regarding Human Resource in the Company
  
• Certificate of ISO 9000, optional
  

Documents Required for MSME

• Address proof of the registered office.
  
• Copy of sales and purchase bills
  
• MOA/Partnership Deed
  
• Receipts of equipped Plant and Machinery
  
• Copy of the Industrial License
  
• NICC (National Industrial Classification Code)
  
• Cancelled Cheque
  
• Identity and address proof of directors
  

What is the difference in the Procedure required for the NSIC and MSME Registration?

Procedure for the NSIC Registration

Apply online on the NSIC portal

At first, you need to register your Company online at the NSIC portal under the SPRS (Single Point Registration Scheme for Government Purchase).

Filling details along with the Document submission

The applicant has to fill the details of the following:

• PAN Number of the Company that is to be registered.
  
• Name of the Organization.
  
• Business type
  
• Udyog Aadhar Number
  
• GST Number
  
• Inspecting agency
  
• NSIC Branch preference.
  
• Major Category products
  

Branch Details

Details like the Branch name, address, timings and contacts are sent to the applicant for which the applicant has selected the NSIC Branch.

Documents Secularization

After the documents are uploaded, the applicant has to be physically present at the branch with the original documents handy for the verification purpose.

Issuance of Certificate

The NSIC authorized person will verify all the documents and the above procedures involved and the NSIC Registration Certificate will be issued then.

Procedure for the MSME Registration –

Apply online on the MSME Portal for MSME Registration:

The applicant needs to log in to the MSME portal and has to fill the 12 digits Udyog Aadhar number.

Now, the applicant needs to fill the name of the Directors and generate an OTP (By clicking on “Validate and Generate OTP”) to validate the Aadhar.

Mark the gender selection and status of physically handicapped (YES/NO).

Now, the applicant will fill the following details:

• Organization Name
  
• Organization Type
  
• PAN card details in case of Private Limited Company or LLP or partnership or Cooperative Company
  
• Plant locations or Business operations unit.
  
• Registered Company Address (Details like State, district and PIN code).
  
• Date of commencement of business operations
  
• Bank details of the current account.
  
• The category of the organization
  
• Number of Employees in the organization
  
• The worth of plant and machinery employed
  
• DIC (District Industries Center) Location.
  

Issuance of Certificate

Finally, after furnishing all the detail, the concerned ministry will issue the MSME Certificate.

Final Thoughts

Since all the MSME companies are being operated under the NSIC, firstly you need to register your Company as MSME and obtain the MSME Certificate. After that, you will register your MSME under the NSIC.

The registration process of the MSME is quite easier in comparison to the NSIC registration. One can avail various government schemes and profits if the firm is registered as MSME and NSIC.

For more information on this visit www.taxaj.com

Posted by Pooja

Team Taxaj