Small Scale and ancillary units (i.e. undertaking with investment in plant and machinery of less than the government specified limit) should seek registration with the Director of Industries of the concerned State Government.
States have generally adopted the uniform registration procedures as per the guidelines.
Units would normally get registered to avail some benefits, incentives or support given either by the Central or State Govt. DIC is the primary registering centre. Registration is voluntary and not compulsory.
First a provisional registration certificate (PRC) 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.
PRC 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.
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. For obtaining the permanent registration certificate the unit has to obtain all necessary clearances whether statutory or administrative. e.g. drug license under drug control order, NOC from Pollution Control Board, if required etc.