The Make in India Certificate is not only required for manufacturers, but also for service providers. The Make in India Certificate was launched by the Indian government in 2014 to promote manufacturing in the country. It plays an important role in the growth of India's economy, employment, and foreign investments because it contributes significantly to the service sector, which contributes more than 50% of the country's GDP. The IT sector, finance sector, healthcare sector, tourism sector, education sector, consulting sector, and professional services sector have all received significant policy support under this initiative. It provides a number of tax benefits, as well as attracting more foreign investment, regardless of whether you are a small business owner or a reputable service provider. In this article, you will get about eligibility criteria, document list, process, and fees associated with Make in India certificates.
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The Make in India Certificate is an official document that indicates product manufacturer in India. It is an important requirement for OEMs (Original Equipment Manufacturers) which helps businesses to participate in government tenders and public procurements by several portals like GEM, NICSI and others. This certification assures that the concerned OEM has manufactured Indian products that encourage the government’s initiative of Make in India.
The Make in India Certificate mainly has three types depending upon the local material used to manufacture the product such as:
The eligibility for Make in India Certificate is mentioned here:
1. The company should be under Indian ownership and must be registered in India under the applicable law. Foreign companies are also eligible but only when they set up subsidiaries or joint ventures in India.
2. To obtain an MII certificate, the business must be engaged in manufacturing within India. Importers reselling goods by labeling “Make in India” will not qualify.
3. For obtaining a Make in India Certificate, a certain percentage of value addition must be done in India, whether it is processing, assembly, packaging, etc. It is mandatory by the government that products have minimum domestic value addition for public procurement.
There are many advantages to obtain Make in India Certificate, some of them mentioned here:
The complete documents for Make in India Certificate is listed below:
Stepwise process for Make in India Certificate is as follow:
Step 01: Before going with the process of Make in India Certificate, the applicant must calculate the amount of local content. This content calculation helps to determine the eligibility for this certification. According to this calculation the goods or service categories in different classes such as - Class 1 supplier, Class 2 Supplier and non-local supplier.
Step 02: After the content calculation, gather all the important documents to proceed with the registration process. This documentation aids to validate criteria of the applicant for the certification.
Step 03: Once the applicant is done with the gathering the documents must undergo verification by a company auditor or a practicing CA. Here, the CA verifies the financial invoices and records to justify % of local content.
Step 04: when CA verifies, the application goes to the DPIIT (Department for Promotion of Industry and Internal Trade) which is the relevant authority for Make in India Certificate. Here the department reviews the application and examines each document and also conducts inspection for manufacturing process verification.
Step 05: At the last stage, the authority will issue the MII certificate if they do not find any fault and issue. This certification allows it to showcase its compliance with the make in India initiative and also helps in many government tenders and improves brand credibility.
The fees for Make in India Certificate is as follow:
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1. What is the Make in India Certificate?
A Make in India Certificate verifies that a product is primarily manufactured in India, helping OEMs participate more effectively in government tenders and procurements.
2. Who is eligible for the MII Certificate?
Only Class 1 and Class 2 local suppliers are eligible, according to the local content % their products.
3. What are the classifications of local suppliers for MII certification?
For MII certification, local suppliers are classified into class 1 suppliers whose local content exceeds 50%, class 2 suppliers whose local content falls between 20% and 50%, and class 3 suppliers with local content below 20%.
4. Why is the Make in India Certificate important?
Make in India certificate offers a preference to businesses in government tenders and contracts.
5. What documents are required for an MII Certificate?
GSTIN, GeM bid details, OEM certificate, product list with local content percentage, and manufacturing facility details are some documents which are required for an MII Certificate.
6. How is local content calculated for Make in India certification?
For a Make in India certificate, local content is determined by subtracting imported content from the total item value and representing it as a percentage of the total item value.
7. Is verification by a CA or auditor necessary for the Make in India Certificate?
For procurements exceeding Rs.10 crores, a certificate from a a statutory auditor or a practicing CA is required to obtain the Make in India certificate.