DE-REGISTRATION

A Micro, small and medium Enterprises can violate the regulations in the following ways which will make it liable for de-registration:

• It crosses the investment limits.
• It starts manufacturing any new item or items that require an industrial license or other kind of statutory license.
• It does not satisfy the condition of being owned, controlled or being a subsidiary of any other industrial undertaking.

The following Factors form Basis of Evaluation

• The unit has obtained all necessary clearances whether statutory or administrative. e.g. drug license under drug control order, NOC from Pollution Control Board, if required etc.
• Unit does not violate any locational restrictions in force, at the time of evaluation.
• Value of plant and machinery is within prescribed limits.
• Unit is not owned, controlled or subsidiary of any other industrial undertaking as per notification.

PROCEDURE FOR REGISTRATION

Features of the present procedures are as follows:

• A unit can apply for PRC for any item that does not require industrial license which means items listed in Schedule-III and items not listed in Schedule-I or Schedule-II of the licencing Exemption Notification. Units employing less than 50/100 workers with/without power can apply for registration even for those items included in Schedule-II.
• Unit applies for PRC in prescribed application form. No field enquiry is done and PRC is issued.
• PRC is valid for five years. If the entrepreneur is unable to set up the unit in this period, he can apply afresh at the end of five years period.
• Once the unit commences production, it has to apply for permanent registration on the prescribed form.

PERMANENT REGISTRATION CERTIFICATE

Enables the unit to get the following incentives/concessions:

• Excise exemptions
• Income-Tax exemption and Sales Tax exemption as per State Govt. Policy.
• Incentives and concessions in power tariff etc.
• Price and purchase preference for goods produced.
• Availability of raw material depending on existing policy.

PROVISIONAL REGISTRATION CERTIFICATE (PRC)

• This is given for the pre-operative period and enables the units to obtain the term loans and working capital from financial institutions/banks under priority sector lending.
• Obtain facilities for accommodation, land, other approvals etc.
• Obtain various necessary NOCs and clearances from regulatory bodies such as Pollution Control Board, Labour Regulations etc.

FEATURES OF THE SCHEME

Features of the scheme are as follows:

• DIC is the primary registering centre
• Registration is voluntary and not compulsory.
• Two types of registration is done in all States. First a provisional registration certificate is given. And after commencement of production, a permanent registration certificate is given.
• PRC is normally valid for 5 years and permanent registration is given in perpetuity.

OBJECTIVES OF THE REGISTRATION SCHEME

They are summarised as follows: - To enumerate and maintain a roll of small industries to which the package of incentives and support are targeted. - To provide a certificate enabling the units to avail statutory benefits mainly in terms of protection. - To serve the purpose of collection of statistics. - To create nodal centres at the Centre, State and District levels to promote MSME.