Small Scale Industries are not subjected to compulsory licensing. Registration with the State Directorate of Industries is also not mandatory.
Registration, however, helps in many ways as the unit becomes eligible to obtain all facilities and assistance from government. Registration of Small Scale unit units is done in two stages.
	A. Provisional Registration - EMI Part I B. Permanent Registration - EMI Part II
Provisional Registration is granted at the District Industries Centres level the same day on receipt of application and enables the entrepreneur to be eligible for facilities such as
	. Allotment of factory sheds/plots in industrial estates . Water connection . Power connection . Liberalized financial assistance . Machinery on hire purchase  etc. from Central/state govt. organizations like NSIC, State Small industries Corporations.
Once the unit has obtained all clearances and has taken all steps to commence production, it can apply for permanent registration.