What is Single Point Registration Scheme (SPRS)?

The Single Point Registration Scheme (SPRS) is an essential initiative by the National Small Industries Corporation (NSIC) aimed at facilitating the participation of Micro and Small Enterprises (MSEs) in government procurement processes. Under this scheme, MSEs can register themselves to avail various benefits that ease their access to government tenders and promote business growth. One of the significant advantages of SPRS is the exemption from payment of Earnest Money Deposit (EMD), which significantly reduces the financial burden on MSEs while applying for government tenders. Additionally, registered enterprises receive tender document cost exemptions and may also benefit from price preference policies, which give them a competitive edge over larger businesses.

Moreover, SPRS allows MSEs to be enlisted in the Government Purchase Program, enabling them to receive procurement orders from various government departments and public sector undertakings. This scheme also supports MSEs by promoting their products through national and international trade fairs, exhibitions, and buyer-seller meets, thereby enhancing their market visibility. For startups and newly established businesses that have commenced production but are yet to complete one year of operations, provisional registration is available with a monetary limit of Rs.5 lakh, valid for one year. This helps them gain initial traction and participate in limited procurement processes until they are eligible for full registration.

With the help of enrolling in the SPRS, MSEs not only enhance their business credibility but also gain easier access to lucrative government contracts, financial support, and market opportunities. The process of registration requires meeting eligibility criteria, such as possessing a valid Udyam Registration and ensuring compliance with statutory regulations. For businesses seeking to strengthen their market presence and expand their operational capacity, SPRS is a strategic initiative that offers tangible growth prospects.

Benefits of NSIC Registration for MSEs (Micro and Small Enterprises)

The following are the benefits of NSIC Registration in India for MSEs:

Access to Government Tenders

One of the most significant benefits of NSIC registration for Micro and Small Enterprises (MSEs) is simplified participation in government tenders through the Single Point Registration Scheme (SPRS). Registered MSEs are exempt from paying the Earnest Money Deposit (EMD), which reduces the upfront financial burden. Additionally, they enjoy price preference in tenders and receive assistance in developing and submitting competitive bids. This registration increases their chances of securing government contracts, ensuring better business opportunities and growth in the public sector market.

Financial Assistance and Credit Support

NSIC-registered MSEs gain easier access to financial assistance from banks and financial institutions. They can avail of collateral-free loans under various government schemes and enjoy preferential lending rates. NSIC also facilitates financial support for procuring raw materials and for the expansion of operations. This financial assistance is critical for ensuring smooth cash flow, enabling MSEs to maintain consistent production, meet client demands, and invest in scaling their business.

Marketing Support for Business Growth

Marketing is essential for business success, and NSIC provides registered MSEs with extensive support in this area. It helps businesses participate in national and international trade fairs, exhibitions, and buyer-seller meets, offering them a platform to showcase their products and services. NSIC also facilitates promotional activities and provides financial assistance for marketing efforts. This exposure not only enhances brand visibility but also helps businesses forge new partnerships and increase their customer base.

Access to Raw Materials at Competitive Prices

NSIC registration allows MSEs to procure essential raw materials in bulk at competitive prices, thanks to NSIC’s agreements with various government and private sector organizations. This facility ensures that MSEs have a consistent and cost-effective supply of materials like steel, aluminium, chemicals, and machinery, helping to reduce production costs and increase profitability. Additionally, NSIC extends financial assistance to MSEs for raw material procurement, ensuring they can maintain uninterrupted production processes.

Technological and Skill Development Support

To promote innovation and efficiency, NSIC provides registered MSEs with technical support, advisory services, and skill development programs. MSEs receive assistance in modernizing their production processes, improving product quality, and adopting advanced technologies. NSIC also facilitates training for employees and entrepreneurs in areas like business management, quality control, and financial management. These initiatives enhance operational efficiency and enable MSEs to stay competitive in their respective industries.

Enhanced Business Credibility and Market Opportunities

Having an NSIC registration certificate significantly boosts the credibility and market reputation of an MSE. It serves as a mark of reliability and compliance, helping businesses build trust with clients, suppliers, and financial institutions. This registration opens doors to new business opportunities, especially within the government sector, and enhances the overall market positioning of the enterprise. Being an NSIC-registered unit also encourages partnerships with larger corporations that prefer dealing with certified and compliant MSEs.

Eligibility for NSIC Registration

To be eligible for NSIC registration, the following criteria must be met:

Udyam Registration Requirement for NSIC Registration

For Micro and Small Enterprises (MSEs) to be eligible for registration under the National Small Industries Corporation (NSIC)'s Single Point Registration Scheme (SPRS), it is mandatory to have a valid Udyam Registration Certificate. Udyam Registration, introduced by the Ministry of Micro, Small and Medium Enterprises (MSME), serves as the primary proof of business existence and classification as an MSE. It ensures that the enterprise is officially recognized as a Micro or Small Enterprise under government regulations. Once the Udyam registration is completed, MSEs can apply for NSIC registration, which offers various benefits such as exemption from Earnest Money Deposit (EMD) in government tenders, marketing support, and access to financial assistance schemes. Therefore, Udyam Registration is not only a regulatory requirement but also a gateway for MSEs to access the broader benefits available under NSIC.

Provisional NSIC Registration for Startups

Startups that qualify as Micro or Small Enterprises and have already commenced commercial production but have not yet completed one year of existence are eligible for Provisional NSIC Registration under the Single Point Registration Scheme (SPRS). This provisional registration is designed to support emerging businesses in their initial stages by granting them access to government procurement opportunities. However, this certificate comes with a monetary limit of Rs. 5.00 lakhs and is valid for one year from the date of issue. To obtain this provisional registration, enterprises must submit the necessary documents and pay the applicable registration fee. After successfully completing one year of operations, these enterprises can apply for full NSIC registration, which offers greater benefits and unlimited monetary limits. The provisional registration helps startups establish credibility, access initial business opportunities, and prepare for full-scale participation in government tenders once they complete their first year of operations.

Eligibility Based on Business Entity Type

To qualify for NSIC registration, the business entity must be formally registered under recognized structures such as Proprietorship, Partnership, Limited Liability Partnership (LLP), Private Limited Company, Public Limited Company, Cooperatives, or Societies. These formal structures ensure that the business is legally recognized and accountable under Indian law, thus making it eligible to benefit from NSIC’s schemes and services. Proper registration also establishes the entity's credibility, which is essential for participating in government procurement processes.

Active Operational Business Requirement

NSIC registration is specifically designed for businesses that are actively engaged in manufacturing, production, processing, or service sectors. The entity must be operational and contributing to economic activity through the delivery of goods or services. This criterion ensures that only genuinely active and functional businesses benefit from the various financial and developmental schemes offered by NSIC, including access to raw materials, government tenders, and financial assistance.

Compliance with Legal and Regulatory Requirements

For successful NSIC registration, the business must be in full compliance with all applicable laws and regulations, including tax laws, labor laws, environmental regulations, and industrial standards. This includes having valid GST registrations, adhering to labor welfare regulations, and ensuring proper filing of taxes. Compliance is critical as it reflects the enterprise’s legal standing and credibility, which is a key requirement for availing government benefits and participating in procurement processes.

No Pending Defaults with Financial Institutions or Government Agencies

A fundamental eligibility criterion for NSIC registration is that the business must not have any pending defaults with banks, financial institutions, or government agencies. This condition is in place to ensure that only financially responsible enterprises benefit from the schemes. Any pending dues or defaults may disqualify a business, as NSIC aims to support only those entities that maintain financial discipline and integrity.

Traders Not Eligible Under SPRS Scheme

It is important to note that trading entities are not eligible for registration under the Single Point Registration Scheme (SPRS) of NSIC. The scheme specifically targets manufacturers and service providers, as the primary goal is to promote indigenous production and service development. Trading businesses, which are primarily involved in buying and selling without contributing to manufacturing or service development, are excluded from this scheme to ensure that the benefits are directed towards businesses adding real economic value.

Eligibility for Manufacturing and Service Sector MSEs

NSIC registration is specifically available to Micro and Small Enterprises (MSEs) that are actively engaged in manufacturing and service sectors. This ensures that businesses contributing directly to production and service industries can leverage the benefits, such as easier procurement processes, financial assistance, and marketing support. The registration encourages MSEs to enhance their production capabilities, adopt new technologies, and expand their service portfolios for sustainable growth.

Meeting these eligibility criteria is essential for MSEs to successfully obtain NSIC registration and benefit from the schemes designed to empower businesses in India. If you need expert assistance with the eligibility requirements or completing the registration process, reach out to Compliance Calendar LLP. Connect with our experts at info@ccoffice.in or Call/WhatsApp at +91 9988424211 for personalized support.

Documents Required for NSIC Registration

For a smooth NSIC registration process, the following documents are required:

1. Business Identity Proof:
• PAN Card of the business.
• Aadhaar Card of the authorized signatory.
• GST Registration Certificate (if applicable).
• Incorporation Certificate or Partnership Deed.
2. Address Proof:
• Utility bill (electricity or water) of business premises.
• Rent agreement or ownership documents.
3. Financial Documents:
• Audited Balance Sheet and Profit & Loss Account for the last 3 years.
• Income Tax Returns for the last 3 years.
• Banker’s report regarding the financial status of the business.
4. MSME Registration:
• MSME certificate or Udyog Aadhaar certificate.
5. Product or Service Details:
• Detailed list of products or services offered.
6. Quality Certifications (if applicable):
• ISO certificates or any other quality compliance documents.
7. Specific Scheme Documents:
• For SPRS, proof of one year of business existence and self-certification of product quality.

NSIC Registration Process

The NSIC Registration process under the Single Point Registration Scheme (SPRS) is a structured approach that helps Micro and Small Enterprises (MSEs) gain access to government procurement opportunities and other benefits. The process begins by ensuring that the enterprise meets the eligibility criteria. The business must be registered as a Proprietorship, Partnership, LLP, Private Limited Company, Public Limited Company, Cooperative, or Society. Additionally, the enterprise should be actively engaged in manufacturing, production, or service-related activities. It is also mandatory to have a valid Udyam Registration Certificate and ensure compliance with all statutory requirements such as tax and labor laws. Importantly, the enterprise should not have any pending defaults with financial institutions or government bodies. Notably, trading entities are not eligible for registration under the SPRS scheme.

The next step involves preparing all the necessary documents. These include the Udyam Registration Certificate, GST Registration Certificate, PAN Card, bank account details, proof of ownership or lease agreement for the business premises, list of plant and machinery, balance sheets and profit & loss statements for the last three years, and details of products or services offered. If applicable, copies of ISO certificates and purchase or work orders must also be submitted. Having these documents organized and verified ensures a smoother application process.

Once the documentation is ready, the application can be submitted online through the official NSIC portal  or offline at the nearest NSIC office. For online submission, applicants need to create an account, fill out the registration form accurately, upload the necessary documents, and pay the prescribed registration fee. For offline applications, the completed form along with all supporting documents and the applicable fee must be submitted in person. The registration fee is determined based on the company’s annual turnover and the type of registration (provisional or full).

Following submission, NSIC officials will conduct a verification process to ensure the authenticity of the submitted documents. If necessary, an on-site inspection may be conducted to validate the operational status of the business and verify details related to manufacturing capacity, product quality, and compliance with regulations. Any discrepancies found during this stage may require the applicant to provide clarifications or additional documents.

Upon successful verification and inspection, NSIC will issue the NSIC Registration Certificate. For newly established startups that have commenced production but have not yet completed one year of existence, NSIC provides a Provisional Registration Certificate with a monetary limit of Rs. 5 lakhs, valid for one year. This allows startups to participate in limited government procurement processes while they establish themselves. After completing one year, these businesses can apply for full registration to enjoy complete benefits under the SPRS scheme.

Once approved, applicants can download their NSIC Registration Certificate from the official portal by logging in with their registered credentials. It is advisable to keep both digital and physical copies of the certificate for reference, especially while applying for government tenders or financial assistance. The registration is valid for two years and must be renewed upon expiration. The renewal process involves re-verification of documents and payment of a nominal renewal fee, ensuring that the enterprise continues to meet the eligibility criteria and compliance standards.

By following this registration process, MSEs can significantly enhance their market presence and gain access to valuable government schemes and procurement opportunities.

Validity and Renewal of NSIC Registration

The validity of NSIC Registration under the Single Point Registration Scheme (SPRS) is an essential aspect for Micro and Small Enterprises (MSEs) to understand for maintaining their eligibility and continued access to government procurement benefits. Once an enterprise successfully obtains the NSIC Registration Certificate, it is initially valid for a period of 2 years from the date of issuance. To ensure uninterrupted benefits, MSEs must apply for renewal before the expiration of the registration certificate. The renewal process involves re-verification of documents and operational status to confirm that the enterprise continues to meet the eligibility criteria and complies with applicable laws.

For newly established MSEs or startups that have commenced production but have not yet completed one year of operations, NSIC provides a Provisional Registration Certificate. This provisional registration is issued with a monetary limit of ?5 lakh and remains valid for one year from the date of issue. The primary purpose of this provisional certificate is to allow emerging businesses to participate in limited government procurement processes and establish credibility. Once the enterprise successfully completes one year of operations, it becomes eligible to apply for full NSIC registration, which grants extended benefits and a broader scope for participation in government tenders.

It is important to note that the renewal process for NSIC registration requires submitting updated financial documents, such as audited balance sheets, profit & loss statements, and compliance certificates, to verify the enterprise's continued eligibility. If the enterprise fails to renew the registration before its expiry, it may lose its eligibility for government tenders and other NSIC benefits. Therefore, timely renewal is crucial to ensure that the MSEs continue to enjoy the advantages of NSIC registration, including EMD exemption, tender participation, and financial support schemes.

For expert assistance with NSIC registration, provisional registration, or renewal processes, reach out to Compliance Calendar LLP. Our experts offer end-to-end support, ensuring a smooth and hassle-free experience. Connect with us at info@ccoffice.in or Call/WhatsApp +91 9988424211 for personalized guidance.

NSIC Registration Fee Structure Under Single Point Registration Scheme (SPRS)

The registration fee for obtaining an NSIC certificate under SPRS is determined based on the latest audited turnover of the Micro and Small Enterprises (MSEs). This fee structure applies to fresh registration, renewal, and any amendments to the registration certificate. Below is the detailed and structured fee format to help MSEs to know the applicable charges.

Fee for Fresh Registration of Micro & Small Enterprises (MSEs)

The fee for fresh NSIC registration is categorized based on the annual turnover of the enterprise.

• (a) Turnover Up to Rs. 100 Lakh:
• Micro Enterprises: Rs. 3,000 + GST
• Small Enterprises: Rs. 5,000 + GST
• (b) Turnover Exceeding Rs. 100 Lakh:
• Micro Enterprises: Rs. 3,000 + Rs. 1,500 for every additional Rs. 100 Lakh turnover (with a maximum cap of Rs. 1 lakh for all categories).
• Small Enterprises: Rs. 5,000 + Rs. 2,000 for every additional Rs. 100 Lakh turnover (with a maximum cap of Rs. 1 lakh for all categories).

Fee for Amendment in Stores (Qualitative & Quantitative Changes)

When MSEs request amendments regarding the quality or quantity of stores, the fee is:

• 50% of the fresh registration charges applicable for Micro and Small Enterprises, respectively.
• Maximum cap: Rs. 50,000 (exclusive of taxes).
• Applicable taxes will be added as per government guidelines.

Fee for Renewal of the Registration

NSIC registration under SPRS is valid for 2 years. The renewal fee structure is the same as the fresh registration fee based on the enterprise’s turnover, as outlined in point 1.

Fee for Renewal and Amendment When Applied Together

If an MSE applies for both renewal and amendment simultaneously, the fee will be:

• 50% of the combined charges for registration and amendments applicable for Micro and Small Enterprises.
• Maximum cap: Rs. 50,000 (exclusive of applicable taxes).

Inspection Charges

• These charges are exclusive of the registration fee.
• They are decided by the inspecting agency and are borne by the enterprise undergoing inspection.
• The amount and payment terms are determined based on the nature and extent of the inspection.

Grace Period for Renewal

• MSEs are provided with a one-month grace period after the expiration of their NSIC enlistment certificate.
• During this grace period, the regular renewal fee applies without any penalties.
• Renewal After Grace Period: If the renewal is applied after the grace period but before two years from the expiry date, the enterprise must pay the full fresh registration fee applicable for its category.

Special Concessions and Discounts

1. Nominal Fee for SC/ST Enterprises:
• Enterprises owned by individuals belonging to Scheduled Castes (SC) and Scheduled Tribes (ST) can avail of nominal registration fees set at Rs. 100 + GST.
• This concession is applicable for the financial years from 2021-22 to 2025-26.
2. Concession for North Eastern Region (NER):
• MSEs located in the North Eastern Region (NER) of India are entitled to a 20% fee concession on the registration charges.
• However, the inspection charges will remain the same as applicable for other regions.

Important Points to Remember

• Taxes: The mentioned registration and amendment fees are exclusive of applicable taxes. Relevant taxes (like GST) will be added during payment.
• Cap on Charges:
• The maximum cap for fresh registration and amendments is Rs. 1 lakh for all enterprise categories.
• For amendments alone, the fee cap is Rs. 50,000 for Micro and Small Enterprises.
• Inspection Charges: These charges are separate from the registration fee and are decided by the inspecting agency. The unit is responsible for paying these charges.

Amendment in NSIC Enlistment Certificate under SPRS

Micro and Small Enterprises (MSEs) registered under the Single Point Registration Scheme (SPRS) with NSIC can apply for amendments to their enlistment certificate through the official NSIC portal. Before initiating the amendment process, it is advisable for applicants to thoroughly review the Checklist and Download section on the portal. This section provides detailed information regarding the required forms, annexures, and supporting documents necessary for the amendment process. To ensure a smooth and quick submission, it is recommended that all necessary documents be organized in a dedicated folder on the desktop for easy uploading during the online application process.

The amendment fee is calculated based on the enterprise's category—Micro or Small—and is equivalent to 50% of the fresh registration fee, similar to the renewal fee structure. Once the amendment is successfully processed and approved, the final amended certificate will be made available online through the portal for easy download. Additionally, a physical copy of the amended certificate will be sent to the registered address by the respective NSIC office via post. For any correspondence regarding the amendment, it is essential to quote the registration number mentioned on the NSIC certificate for prompt and accurate communication.

Types of Amendments Allowed

MSEs can request amendments to their enlistment certificate for the following changes:

1. Change in Name of the Company or Office Address – If the company undergoes a name change or relocates its registered office.
2. Change in Factory Address – For enterprises shifting their manufacturing or production facilities to a new location.
3. Change in Partners or Directors – Any change in the ownership or management structure, including addition or removal of partners or directors.
4. Amendment in Monetary Limit – To increase or modify the monetary limit associated with the registered MSE.
5. Inclusion of Additional Items (Stores) – When enterprises expand their product range or service offerings and need to include additional items in their certificate.
6. Change in Category (SC/ST and General) – If an enterprise needs to update its category based on social classification, such as SC/ST or General.

Activities Not Eligible for NSIC Registration under SPRS

Certain types of enterprises and activities are ineligible for NSIC registration under the SPRS scheme, including:

1. Manufacture of Medicines and Drugs – Except for MSE units engaged in the manufacturing and supply of Ayurvedic, Unani, Siddha, and Homeopathic medicines. Enterprises producing allopathic medicines and drugs are not eligible.
2. Trading Activities – MSEs involved in wholesale trading, retail trading, or acting as commission agents are not eligible for NSIC registration. The scheme is strictly meant for manufacturers and service providers.
3. Blacklisted Enterprises – Any MSE that has been blacklisted by a government agency is ineligible for registration until the blacklisting period expires.
4. Criminal Convictions – Enterprises where the proprietor, partner, director, or Karta has been convicted for any criminal offence are barred from obtaining registration under the SPRS scheme.

Procedure for Calculation and Fixation of Monetary Limits for Micro & Small Enterprises (MSEs)

The monetary limit for Micro and Small Enterprises (MSEs) under the NSIC Single Point Registration Scheme (SPRS) is determined based on the net sales turnover of the enterprise as reflected in the audited balance sheets of the last three financial years. This monetary limit is essential as it determines the extent of participation an MSE can have in government procurement processes.

The primary basis for fixing the monetary limit is the highest turnover achieved by the enterprise during the last three financial years. This turnover may or may not pertain to the latest financial year. However, the monetary limit is only considered valid if the installed and operating capacity of the unit has not been reduced. Any reduction in the capacity or machinery may directly impact the monetary limit calculation.

If there is no decrease in the plant and machinery, then the monetary limit will be fixed at 50% of the highest net sales turnover achieved during the last three years, as per the audited balance sheets. This approach ensures that enterprises with stable production capacity and consistent operations are rewarded based on their best performance.

However, in situations where there is a decrease in plant and machinery by more than 10%, additional considerations come into play. If the enterprise has demonstrated a steady increase in turnover over the past three years and has been consistently profitable, then the monetary limit will be fixed at 50% of the net sales turnover achieved in the last financial year. This approach acknowledges the consistent performance of the enterprise despite the reduction in operational capacity.

Conversely, if the enterprise has incurred a loss in any one year out of the past three years, the monetary limit will be more conservative. In such cases, the limit will be fixed at 40% of the average net sales turnover achieved over the last three years. This takes into account the financial instability reflected in the business operations.

In instances where the enterprise has faced losses in two out of the past three financial years, the monetary limit will be reduced further and fixed at 30% of the average net sales turnover for the same period. This approach ensures that the monetary limit aligns with the financial health and operational consistency of the enterprise.

In more adverse situations where the MSE has incurred continuous losses throughout the past three years, the monetary limit will be fixed conservatively at 20% of the average net sales turnover over these three years. This stringent approach is adopted to mitigate risk and ensure that enterprises with poor financial performance are given monetary limits reflective of their actual capacity.