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Registering A Business In India: Registration Of A Small Scale And A Large Scale Business

How to Register Your Business in India

This article is going to highlight what it takes to register your business, the entire process of it, the difference in registration processes for small-scale companies and large-scale companies.

Starting a business is a dream come true for most people. Working a 9-5 job doesn’t seem appealing to most millennials these days. “Don’t confuse schooling with education. I didn’t go to Harvard, but the people who work for me did.” This is a quote from innovator and CEO Elon Musk.

Figures of business history such as Bill Gates, Elon Musk, Jeff Bezos, and Mark Zuckerberg all share the love of employing people over being employed under someone. If you’ve always had a dream of setting up your own business, you definitely might have looked up to either one of these geniuses, or you at least try to model your business in their footsteps.

But here’s the thing. How do you go about doing it all? From creating a product, analyzing markets, finalizing the structure of your business, raising finances, etc., setting up a business can be a hassle. The final piece of this puzzle is registration. Now, there’s no point in starting a company that is not officially recognized.

You will not be able to clear the legal procedures needed for the commencement of your business until you register it. So, this article is going to highlight what it takes to register your business, the entire process of it, the difference in registration processes for small-scale companies and large-scale companies. Hence, without further ado, let’s get started.

Distinction Between Industrial Scales

Now before we get started on how to register your business, let’s have a brief introduction to what small-scale industries and large-scale industries are. This is vital information for you to know to categorize your business into a small-scale business or a large-scale business. This distinction is important because the registration process for small-scale firms differs from large-scale companies.

1. Small Scale Businesses

As its name suggests, small-scale businesses are businesses that operate on a minimal and small scale. This includes your retail and provision stores, stationery shops, bakeries, etc. These businesses are usually set up and managed by members of a family. Their scale is regulated officially by the government through their capital impediments.

Small scale industries have a capital limit in contrast to large scale industries. This capital limit is different for micro, small and medium scale businesses. The latest revised capital limits for micro-enterprises are one crore and below five crore turnover; for small scale, maximum capital is ten crores and turnover less than 50 crore. For medium-scale businesses, it takes a maximum of 50 crores and turnover not greater than 250 crores.

Read more about – What is a Small Scale Enterprise? Its Types Explained

2. Large Scale Businesses

The distinction between small and large-scale businesses becomes easy when small-scale businesses are defined. Given the capital limits that regulate MSMEs, large-scale businesses are those that exceed that limit. Large-scale businesses don’t have that cap on their capital, but they are exempt from various benefits designed for MSMEs.

Registration of a Small Scale Business

Now that you know the distinction between both scales of business, if yours is a small scale business, then the guidelines below will tell you how to register your business in India –

Eligibility with DI

All small-scale businesses need to be registered with the Director of Industries as either a manufacturing or a service business. You need to register your business through SPRS or a single-point registration scheme after getting the required acknowledgment from the Entrepreneurs Memorandum.

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Application Process

The application process to register your business starts by applying for the SSI registration certificate. This is a five-year license that will help you avail of various financial aids. You can apply for this SSI certificate through different state websites or zonal websites, depending on your area of residence.

Important Documentation

Documents are necessary for the availing of your SSI registering certificate. Some of the essential documents that need to be submitted for the SSI certificate are –

  • Passport Photos
  • Copy of a partnership deed
  • All documents related to memorandum of association and private registered companies
  • Address and rent receipts for legal proof.

After all these steps, you will have to commence your business, after which you can apply for a permanent SSI certificate. You can again apply for the permanent certificate on one of the government websites or zonal websites.

Registering a Large Scale Business

It isn’t termed as registering a large-scale business, as shown by the subheading. Instead, to be more precise, it is the registry of a private limited company. Therefore the steps for registering a private limited company are –

Online Registration

All the registration for companies now takes place online. So you might have to visit government websites or zonal websites. You will have to submit digital signatures for the entire process. The portal you will be applying on is called the MCA portal ( Ministry of Corporate Affairs ).


DIN is an acronym for Director Identification Number. Since the person registering the company is naturally also the company’s director, the DIN is a unique number identifying the applicant as a company director.

Application Process

Once you get your DIN on the MCA portal, you will have to fill up the SPICe+ form. This form will take your registration to the next phase. But to arrive at this stage, the company director in the roster needs to apply on the MCA portal. Only after being cleared will he or she be able to use and avail of any other e-form on the website.


COI or Certificate Of Incorporation is an official decree that your company has been registered. To arrive at this final stage, the registrar of companies needs to greenlight your application after a thorough examination. Once you’ve been greenlit, you will be issued the Certificate of Incorporation, effectively registering your company.


The registration process of a company can be complicated if you don’t have a clear path towards the endpoint. This means a lot of legal formalities and jargon that most business owners may or may not know. This article should have been a decent outline of what to do and how to do it. If you want a clearer picture of registering your company, you can visit www.msmex.in/ask-experts or connect directly with a legal expert at MSMEx to know more.

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