Single Point Registration Scheme

Small businesses or companies falling under the Micro Small Medium Enterprises (MSME) category may be willing to work with government departments and enterprises and offer manufacturing and services. But before them persists the problem of filling and applying forms and fees and then paying for Earnest Money Deposit (EMD). To solve this problem, National Small Industries Corporation (NSIC) introduced a scheme called the Single Point Registration Scheme (SPRS) certification program. The Single Point Registration Scheme was introduced in 1976 with the objective of avoiding multiple registrations. Under this certification scheme, the company can avail of two major benefits. This includes exemption from the tender fee in government tenders and exemption from Earnest Money Deposit (EMD). Micro and Small Enterprises are eligible for exemption in the manufacturing and the service sector. This facility is not available for trading activities.

Definition of MSME: It is a branch of the Government of India and constitutes the apex executive body responsible for the formulation and administration of rules, regulations and laws related to MSMEs in India.

Micro Enterprise (Manufacturing): Investment in plant and machinery up to Rs 25 lakh.

Small Enterprise (Manufacturing): Investment in plant and manufacturing up to Rs 5 Crore.

Micro Enterprise (Service): Investment in equipment up to Rs 10 lakh.

Small Enterprise (Service): Investment in equipment up to Rs 2 Crore.

SPRS: Single Point Registration Scheme is a developmental programme introduced by NSIC to assist micro-small enterprises. Small business and micro-business units carrying NSIC registration schemes get exemption from Earnest Money Deposit (EMD) in government tenders and purchases.

EMD: EMD or Earnest Money Deposit is the money taken before any bid from the bidder as a security deposit in order to ensure seriousness about the deal. However, if a company is NSIC registered in the SPRS, then the bidder will be exempted from the EMD during a government bid.

NSIC Registration for SPRS

Micro and small enterprises both have different criteria and registration under SPRS.

Micro Enterprises – Rs 3000 for turnover up to Rs 100 lakh.

Small Enterprises – Rs 5000 for turnover up to Rs 100 lakh.

For companies having a turnover of more than 1 Crore-

Micro Enterprises – Rs 3000+ Rs 1500 for every additional turnover of Rs 100 lakh.

Small Enterprises – Rs 5000 + Rs 2000 for every additional turnover of Rs 100 lakh.

The maximum fee cap for any category of enterprises is Rs 1 lakh.  

The objective of SPRS

The main objective of the single point registration scheme is to increase government purchases from small business units and micro-business units. Following are the objectives of single point registration scheme-

1. Government is the largest buyer of goods and services.

2. The government launched the Store Purchase Programme from 1955 to 1956 to increase the government purchases from the small scale business units.

3. Under the Store Purchase Programme, the government took the initiative to avoid multiple registrations of business companies and launched the SPRS in 1976, which was further revised in 2003.

Eligibility Criteria of SPRS

On the basis of public procurement policy under SPRS, the government purchases services and products from the registered micro and small business units. If a company is under the MSME and wants to work with the government enterprises, then the company must have a single point registration. With this registration, a company can quote or apply for the government tenders and purchases and also will be eligible for exemption from the forms, fees and EMD.

There are some listed criteria to get exempted from both the issues of filling forms, paying fees and EMD. These are-

1. MSME Registration

2.Memorandum, part II (EM-II)

3. In case any startup or MSE has commenced production but has a business tenure of less than one year, then NSIC provides a Provisional Registration Certificate in a single point registration scheme.

4. The validity of SPRS is two years. The company is eligible for full registration after completion of 1 year. Renewal of SPRS  is 6 months from the date of expiry.

Benefits of SPRS

Micro and Small Enterprises must have Udyog Aadhaar MSME registration. Only then can a company register for SPRS under the NSIC site to avail of all these facilities. The major benefits include-

1. Exemption from the tender fee in the government tenders and purchases

2. Exemption from EMD (Earnest Money Deposit)

3. Small Micro Enterprises quoted price within a price band of L1+15% shall also be allowed.

4. In view of public procurement policy, government departments and PSUs have to purchase a minimum limit of 25% of goods and services from micro-small enterprises.

5. Out of this 25% limit, SC/STs owned 4% units of supplies and 3% was reserved for women enterprises.

Conclusion

The government of India has taken several measures to foster the growth of small industries and made several investments to promote new startups and entrepreneurs in India under the umbrella programmes like Make in India, Skill India, Digital India, and Startup India Standup India. Indian PSUs helped the government by assisting and developing the MSME sector. NSIC, or National Small Industries Corporation, is one such PSU that took the initiative to uplift the small scale industries in India by introducing the attractive scheme called Single Point Registration Scheme. Startups and small scale businesses registered under SPRS get exempted from the EMD during participation in government tenders and purchases.