What is a Single Point Registration Scheme?

The promotion and development of small and upcoming businesses has always been on the agenda of the Government of India. Keeping this in view, the government has launched multiple initiatives like Start-up India, Stand-up India, Make in India, Skill India and Digital India, to name a few.

Several PSUs assist the government in the development of micro and small-scale units in India. The National Small Industries Corporation (NSIC) is one such PSU. It has been working closely with the government for the last 6 decades to strengthen units in the Micro, Small & Medium Enterprises (MSME) sector and give them a boost.

Among the multiple schemes available on obtaining an NSIC registration that allows entrepreneurs to attain growth, the Single Point Registration Scheme (SPRS) is an important and attractive scheme. It is a developmental scheme by NSIC that helps registered MSEs receive full exemption under the Earnest Money Deposit (EMD) for government purchases.

What is EMD?

Earnest Money Deposit is the money a bidder pays before any bid, as a security or guarantee. It is taken as a confirmation of the bidder’s intention towards the acceptance of work as per the terms and conditions of the tender.

NSIC registration in SPRS, however, exempts the bidder from paying EMD during government bids.

Understanding Single Point Registration Scheme

As the government is the single largest buyer of a variety of goods, it decided to help the small-scale sector by increasing its share of purchases from them. In simpler words, the government wanted to increase the percentage of purchases it makes from the small-scale sector. NSIC, on the other hand, is just a tool that the government is using to get the Micro and Small Enterprises (MSEs) registered so that they can benefit from the Government Stores Purchase Programme, launched in 1955-56. The Single Point Registration Scheme (SPRS) is the scheme that allows the MSEs to participate in the purchases made by the Government/ Government purchases.

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Why should you register for the Single Point Registration Scheme?

Under the “Public Procurement Policy for Micro & Small Enterprises (MSEs)”, the businesses registered for SPRS of NSIC are eligible to get the following benefits:

1. All registered and eligible MSEs are issued Tender Sets for free.

2. These firms get an exemption from paying under the Earnest Money Deposit (EMD) scheme.

3. When bidding for a Government tender, MSEs are allowed to supply 25% of the total requirement of goods, provided  they have quoted in the least level price band of L1+15%. Although, for this, the MSEs may have to reduce their quoted price to match the L1 price band. Here, the L1 purchasers are usually  medium or large scale units.

4. The government also gives MSEs the provision of pooling for tender marketing, so that they can  enlist under the Consortia & Tender Marketing scheme. .

5. The government, under the SPRS scheme, has earmarked 358 categories of goods for purchase from the small scale sector only.

6. As defined under this scheme, a minimum of 25% of the total annual purchases of goods and services made by the Union Ministries, Departments, and PSUs has to be from MSEs only.

7. In the 25% limit, 4% of the total supplies are reserved for purchase from enterprises owned by the SC/STs. As mentioned under the scheme, a 3% reservation  has been made for purchases from enterprises run by women.

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Who is Eligible for the Single Point Registration Scheme?

• All Micro and Small Enterprises with either Udyog Aadhaar Memorandum (UAM), Udyam Registration, or EM Part-II are eligible  for registration with NSIC for the Single Point Registration Scheme (SPRS).
• The scheme is also open for Micro & Small Enterprises who have not yet completed one year of existence, but their commercial production has started. Such enterprises are issued a provisional Registration Certificate with a monetary limit of five lakh rupees.
• If the MSE has more than one factory in the same state, or outside the state, all the factories will be registered at one branch only. The application for only one branch is considered under SPRS.

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Who is not eligible for registration under the Single Point Registration Scheme?

• The manufacturers of medicine and drugs are exempted from this scheme. Only the MSE (unit) engaged in manufacturing and supply of Ayurvedic, Unani, Sidha, and Homeopathic medicines can register.
• Wholesale trading, retail trading or commission agents are also barred from the scheme.
• The MSEs who have been blacklisted do not meet the eligibility for the SPRS till the expiry of such period.
• The SPRS also bars the MSEs whose proprietor/partner/director/Karta has been convicted for any criminal offence.

Who falls under the MSE category?

All enterprises with a limited investment in the business, generally small, are termed as MSEs.

The enterprises are classified as micro or small based on their investment and turnover:

• A Micro Enterprise is one whose investment in plant and machinery does not exceed one crore rupees, and turnover does not exceed five crore rupees.
• The enterprise whose investment in plant and machinery does not exceed ten crore rupees, and turnover does not exceed fifty crore rupees is termed as a Small Enterprise.

Note: Only the Micro and Small Enterprises (MSEs) involved in manufacturing and services are eligible for registration under SPRS.

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What is the validity of the Single  Point Registration Scheme?

The NSIC Registration Certificate under Single Point Registration Scheme is valid for two years from the date of registration. A committee, after thorough verification of continuous Commercial and Technical Competence (CTC) of the registered MSEs, will renew the certificate.

MSEs are allowed to apply for renewal of their registration six months prior to the expiry date. The government offers a discount of 50% for those MSEs who apply for renewal before the expiry of the SPRS certificate.

For those MSE units that do not register a change in their composition from the previously issued certificate, the renewal application can be made online.

List of Necessary Documents

The list only mentions the general documents required for registration under SPRS. The requirement of documents may vary for different business units.

1. PAN Card
2. UAM / Udyam Registration
3. Details of Plant and Machinery
4. Copy of ownership document of the premises/ copy of lease deed/rent  Deed
5. List of quality control equipment and available testing facility.
6. Latest Electricity Bill Copy
7. (i)Face of Audited Balance Sheet, (ii) Profit and Loss Accounts, (iii) Schedule of Fixed Assets, (iv) Schedule of Revenue from Operations (For the last 3 years, duly signed by the authorised person under his seal.)
8. A statement which shows the results of operations for the last 3 years, duly signed by a chartered accountant by indicating UDIN.
9. Bankers’ Report giving details of the financial status of the applicant firm as per Performa
10. Signed declaration to accept the conditions of registration as per Annexure D.

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How to Register for Single Point Registration Scheme Online?

Anyone can easily register for the Single Point Registration Scheme online. Follow these steps for easy registration:

• To register for SPRS, MSEs need to have an Udyam Registration Number. If you do not have one, visit the  Udyam Registration website.
• The next step is to get the MSE registered in the MSME Data Bank using the UAM number and PAN number.
• Fill the online form available on the website of NSIC.
• Once you have completed the form, the fee is charged based on the unit enterprise category (Micro or Small).
• A third-party inspection will inspect store items. Therefore, MSEs get to choose an inspection agency according to their domain expertise and jurisdiction.
• Once your request for registration is accepted, the final SPRS certificate is uploaded online for use. A physical copy of the same is also sent by post.

The Single Point Registration Scheme is the Government’s initiative to help businesses grow, especially MSMEs, in India. For all those waiting for a life-changing opportunity to set up their businesses, this is an excellent provision made by the government.  If your MSE is eligible, you must register your unit under SPRS today following these simple steps!