Choosing your form of Business Organisation

Provisional Registration Of The Unit In The Concerned State / Union Territory

Provisional Registration enables a party to take the necessary steps to bring the unit into existence. It should after providing satisfactory proof of the unit having come into existence be converted into a regular registration later. Application for Provisional Registration is submitted to the District Industries centre (DIC).

The issue of provisional registration is normally automatic and is given within seven days on the receipt of the Application, unless the proposed industry is one which needs raw materials which have been declared as not available to new units because of their acute scarcity. The Development Commissioner, Small Scale Industries from time to Time, circulate the list of industries for which raw materials are in scarcity.

The initial validity of the provisional registration is six months, it may be renewed for a further period of six months on submission of satisfactory proof that the party has taken effective steps to establish the unit but could not complete the same. When all the steps to establish the unit have been taken i.e. the factory building is ready, power connection is given, the machinery is installed, and Application may be made for the conversion of provisional Registration into permanent registration.

New enterprises to be located in the four major metropolitan cities of Bombay. Calcutta, Madras and New Delhi, where there is no DIC should obtain provisional certificate from the Directorate of industries or the designated offices in these cities.

The provisional registration may entitle a party to :

(i) Apply for a shed in an Industrial estate/developed site for construction of a shed to construction of a shed as the case may be
(ii) Apply to corporation / municipal / panchayat/ the local authorities for permission to construct the shed to establish the unit
(iii) Apply for power connection
(iv) Apply for financial assistance to SFC / Nationalised Banks / other financial institutions on the basis of Project Report as may be required by them
(v) Apply to NSIC/ SSIC / other institutions for procuring machinery on Hire purchase basis.
(vi) Make firm arrangements for working capital resources with Banks and other institutions
(vii) Obtain other registrations whenever required, for sales tax, excise duties etc.
(iii) Apply for import of raw materials
(ix) To take other steps necessary to establish industrial units