DEFINITION OF SMALL SCALE INDUSTRIAL UNDERTAKING
Industrial undertaking in which the investment in fixed assets in plant and machinery, excluding land and building whether held on ownership terms or on lease or on hire purchase, does not exceed rupees one crore.

 STATUS OF SMALL SCALE INDUSTRIAL UNDERTAKING

• Ancillary industrial undertaking:
  An industrial undertaking which is engaged or is proposed to be engaged in the manufacture or production of parts, components, sub-assemblies, tooling or intermediates, or the rendering of services and undertaking supplies or proposes to supply or renders not more than fifty percent of its production or services, as the case may be, to one or more other industrial undertakings and whose investment in fixed assets in plant and machinery, whether held on ownership terms or on lease or on hire purchase, does not exceed rupees one crore.

• Tiny industries:
  All Small Scale units wherein investment on plant and machinery(excluding land and building) upto Rs. 25 lakhs are classified as tiny industries.

• Export oriented units:
  All small scale units which exports more than 50% of their output is classified as Export Oriented Units.

 DEFINITION OF SMALL SCALE SERVICE BUSINESS ENTERPRISES (SSSBE)
Industrial related service/business enterprises with investment on plant and machinery upto Rs. 10 lakhs excluding land and building is registered under SSSBE.

 SPECIFIED ACTIVITIES ELIGIBLE FOR SSI REGISTRATION UPTO Rs.5 CRORES
There are certain types of industries/activities wherein investment on plant and machinery upto Rs.5 crores can also be registered under SSI category and such list of industries are available in Info-help.
Note 1 : No Small scale or ancillary industrial undertaking referred to above shall be subsidiary of, or owned or controlled by any other industrial undertaking.
Explanation : For the purposes of this note. "owned" shall have the meaning as derived from the definition of the expression "owner" specified in clause (1) of Section 3 of the said Act. "subsidiary" shall have the same meaning as in clause (47) of section 2 read with section 4, of the Companies Act 1956 (1 of 1956). "controlled by any other industrial undertaking" means as under:-

• where two or more industrial undertakings are set up by the same person as a proprietor, each of such industrial undertakings shall be considered to be controlled by the other industrial undertaking or undertakings.

• where two or more industrial undertakings are set up as partnership firms under the Indian Partnership Act 1932 (1 of 1932) and one or more partners are common partner of partners in such firms, each such undertaking shall be considered to be controlled by the other undertaking or undertakings.

• where industrial undertakings are set up by companies under the Companies Act, 1956 (1 of 1956), an industrial undertakings shall be considered to be controlled by other industrial undertaking if:-

  • the equity holding by other industrial undertaking in it exceeds twenty total equity; or

  • the management control of an undertaking is passed on to the other; industrial undertaking by way of the Managing Director of the first mentioned undertaking being also the Managing Director or Director in the other industrial undertaking or the majority of Directors on then Board of the first mentioned undertaking being the equity holders in the other industrial undertaking in terms of the provisions of the following items(a) and (b) of sub-clause (iv);

• the extent of equity participation by other industrial undertaking or undertakings in the undertaking as per sub-clause (iii) above shall be worked out as follows:

  • the equity participation by other industrial undertaking shall include both foreign and domestic equity;

  • equity participation by other industrial undertaking shall mean total equity held in an industrial undertaking by other industrial undertaking or undertakings, whether small scale or otherwise, put together as well as the equity held by persons who are Directors in any other industrial undertaking or undertakings even if the person concerned is a Director in other Industrial Undertaking or Undertakings;

  • equity held by a person, having special technical qualification and experience, appointed as a Director in a small scale industrial undertakings, to the extent of qualification shares, if so provided in the Articles of Association, shall not be counted in computing the equity held by other industrial undertaking or undertakings even if the person concerned is a Director in other industrial undertaking or undertakings

  • where an industrial undertaking is a subsidiary of, or is owned or controlled by, any other industrial undertaking or undertakings in terms of sub-clauses (i); (ii); or(iii) and if the total investment in fixed assets in plant and machinery of the first mentioned industrial undertaking and the other industrial undertaking or undertakings clubbed together exceeds the limit of investment specified in paragraphs (1) or (2) of this notification as the case may be, none of these industrial undertakings shall be considered to be a small scale or ancillary industrial undertaking.

 TYPES OF SSI REGISTRATION
There are two types of Small Scale Industries Registration Certificates issued by the Department of Industries and Commerce as per guidelines issued by Development Commissioner (Small Scale Industries) New Delhi, Government of India., as mentioned below:

1. Provisional Small Scale Industries Registration Certificate to the proposed units.
2. Permanent Small Scale Industries Registration Certificate to the established SSI units after commencement of production.

 ON LINE PROVISIONAL SSI REGISTRATION
The online service for Provisional SSI Registration is introduced mainly to help the new entrepreneurs to get the Provisional SSI Registration Certificate at his door step without contacting the respective DICs and Regional Joint Director, Chennai. Further it is informed that this online service is introduced by the Department of Industries and Commerce with good intention that entrepreneurs shall furnish the correct and true details to generate on-line provisional SSI Registration certificate.

• Instructions to Browsing Centres
  The Browsing Centre shall ensure that as soon as the Online SSI Provisional Registration application with Certificate is generated, one more copy of the generated application with certificate shall be taken and signature of the applicant unit shall be obtained in the marked place in the original as well as copy of generated applictons as a Self-certification of the details given.

  The Browsing Centre shall ensure that the name of the operator with signature and date, who has generated the online certificate and the receipt of Self-certified copy of the application along with the name of Browsing Centre is mentioned in the space provided at the bottom of both Online Certificates.

  The Browsing Centre shall ensure that only after the receipt of Self-certified copy of the application, the generated Online Provisional SSi Certificate is handed over to the applicant.

• Instructions to Applicant
  This Online Certificate shall be valid only if the annexed application is Self-certified by the applicant and also the receipt of Self-certified copy of the generated Online application is acknowledged by the approved Browsing Centre as listed in the website at the space provided in the bottom of the certificate.

  In case, Self-certified copy of the generated application is not received by the General Manager., District Industries Centre/Regional Joint Director of Industries and Commerce, Chennai within one month from the date of generation of the Certificate by the Browsing Centre, this Online Certificate will be cancelled by the General Manager., District Industries Centre/Regional Joint Director of Industries and Commerce, Chennai and displayed in the website, under intimation to the applicant unit and Browsing Centre.

• General Instructions
  In respect of those who furnish wrong information and do manipulations in the online Application Form the penal action will be taken by the Department and simultaneously online provisional certificate will be automatically cancelled and displayed in the website.
  

  The provisional registration is subject to any or all conditions that may be imposed by the Registering Authority.
  

  Based on the Online Certificate the unit is not entitled to import raw materials, to get advance license and allotment of indigenous raw materials.
  

  Prior clearance from Pollution Control Board is COMPULSORY in respect of Line of Activity given below.
  

Prior clearance from Pollution Control Board is COMPULSORY in respect of the Units for the following Line of Activity

• Distillery
• Animal and Vegetable Plantations & Processing (Tannery, Sago, Starch)
• Fertilizers
• Paper and Paper Pulp
• Chemical Industries
• Petroleum Refineries
• Textile Processing, Dyeing and Bleaching
• Iron Melting, Electroplating, Heat Treatment
• Refractories
• Thermal Power Stations
• Cement
• Drug and Pharmaceuticals
• Paints and Varniches
• Solvent Factories
• Pesticides and Insecticides
• Asbestos Industries
• Foundry
• Aromatic Chemicals
• Petro Chemical Industries
• Man Made Fibre units
• Photo Film Manufacturing