Brief of Start-up India Registration
In 2016, the Indian government launched the Start-up India programme. The primary goal of this programme is to encourage the creation of new businesses in India. Under this initiative, the government has taken a number of important efforts toward establishing a strong start-up ecosystem and transforming India into a country of job creators rather than job seekers. The Startup India Scheme is managed by the Department of Industrial Policy and Promotion (DPIIT). By establishing work prospects in the Indian economy, the startup India registration process has extended the scope of development.
A startup is a newly established business, usually tiny, that is launched by a single person or a small group of people. What sets it apart from other new businesses is that it provides a unique product or service that isn't available anywhere else. The motivations are for the advancement of innovation.
What exactly is a start-up?
A startup is a newly established business, usually tiny, that is launched by a single person or a small group of people. What sets it apart from other new businesses is that it provides a unique product or service that isn't available anywhere else. The motivations are for the advancement of innovation. Any company that meets the following criteria is classified as a startup and is eligible for DPIIT rewards.
The Company's Age
The date of incorporation of the company should not be older than ten years.
Type of Business
Either your organisation is a Private Limited Company as defined by the Companies Act of 2013, or it is a Partnership Firm as defined by the Indian Partnership Act of 1932, or a Limited Liability Partnership Firm as defined by the Limited Liability Partnership Act of 2008.
Limitation on Turnover
Since its establishment, the company's yearly turnover should not have exceeded Rs. 100 crores in any of the financial years.
A New Legal Entity
The company must be brand new; it cannot be the outcome of a merger or reorganisation of an existing company.
Friendly to Innovation
The startup should be focused on product or service innovation or development, or on improving an existing product or service. The business idea should have a lot of potential in order to generate income and jobs.
Certificate from the DIPP
The Inter-Ministerial Board, which is established up by the DIPP, is primarily required to obtain a certificate (Department of Industrial Policy and Promotion).
What are the advantages of DPIIT?
The next stage is to obtain recognition from the Department for Promotion of Industry and Internal Trade after creating a profile on the Startup India website (DPIIT). This recognition assists startups in obtaining benefits such as access to high-quality intellectual property services and other resources, ease of company winding up, benefit of self-certification under environmental and labour laws, reduction in public procurement norms, access to fund of funds, tax exemption for three years in a row, and tax exemption on investment.
Companies that are DPIIT registered can take use of the following Startup India Registration Scheme benefits:
Handholding and Simplicity
Legal assistance has become more possible and easier as a result of considerably easier compliance and an exit mechanism for failed start-ups.
Incentives and funding
Income tax and capital gain tax exemptions are offered, and funds are generated to invest fresh money into the firm.
Partnership Between Incubation and Industry and Academia
The number of incubators and inventive labs, as well as events, competitions, and grants, is growing.
What are the advantages of registering with Startup India?
The following are some of the advantages of registering for Startup India: The Indian government provides many perks to start-ups operating under the Startup India programme. The following is a list of benefits granted under the Startup India Registration scheme:
Benefit from Taxes
Startups registered under the Start-up India scheme are eligible for a three-year tax exemption. Angel Tax relief is offered under section 80IAC and section 56 of the Internal Revenue Code.
Participation in Tenders
Startups are given special consideration by the government and public sector in numerous tenders. They are authorised to compete in tenders for governmental procurement jobs. Relaxation in past experience, EMD, or Turnover criteria are also advantages.
Government Funding Opportunity
The government has set aside Rs 10,000 crore in Alternate Investment Funds to invest in businesses. SIDBI is in charge of the fund's management. Under this quota, all startups are able to apply.
Participate in a variety of government programmes.
The government issues several government programmes on a daily basis to encourage startups to participate. For example, raw material support, a sustainable finance programme, and bank credit facilitation, to name a few.
To Take Part in Start-Up Competitions
Reputable companies motivate and encourage beginning entrepreneurs to join in providing business solutions. This allows the start-up’s entrepreneurs to engage in the plan and gain additional funding. Recently, well-known firms like as Whatsapp, Mahindra, and others have partnered with start-up businesses to arrange financial aid schemes.
Simple Winding Up
The process of winding up a business becomes simple, and it only takes 90 days under the Insolvency and Bankruptcy Code of 2016.
Networks should be connected.
The benefit of a startup is that it aids businesses in forming networks and seeking larger connections. These startup companies look for and connect with several large companies in order to receive mentorship. The ability to interact with investors and sectors is extremely beneficial to new businesses.
Startups can self-certify their compliance with nine distinct labour rules and nine different environmental laws.
Eligible for a Patent rebate
Startups registered under the Startup India scheme would receive an 80 percent discount on patent application fees.
Trademark Filling Rebate
The government promises to provide start-ups participating in this scheme a 50% discount on trademark filing fees.
Possibility for Business
Startup India is a platform that provides several possibilities, recognition, and assistance to all start-ups who are attempting to carve out a place for themselves.
Registration Certificate Documents Required During the Startup India Registration Process
It is critical that you upload your company/certificate LLP's of incorporation (Registration Certificate in case of partnership)
- Email address and phone number, as well as contact information.
- Details about the company, such as the industry, sector of employment, category of dealing, registered office address, and so on.
- In the event of early traction and validation, evidence of concept such as a pitch deck, video, or website link is required.
- The information about the company's Directors or Partners, including their name, photo ID, gender, phone number, email address, and address).
- The names and contact information for the authorised representatives ( Name, contact details, Designation, Email ID).
- The revenue model and the product's uniqueness.
- Details on the PAN.
- A concise summary of the company.
Give a brief summary of your company's innovative character.
Startup India Registration Eligibility
- The framed entity must be either a private limited company or a limited liability partnership.
- The company has not been in operation for ten years from the date of establishment or registration.
- Since its inception, the company has never had a revenue exceeding Rs 100 crore in any of its financial years.
- The business should be focused on the development, innovation, or improvement of services or processes in order to generate employment or wealth.
- The most crucial eligibility requirement is that the Startup company cannot be formed by reorganising or dividing up an existing business.
- The Department of Industrial Policy and Promotion should have given their approval to the organisations (DIPP).
- In order to receive DIPP approval, the company must be backed by an incubation fund, an angel fund, or a private equity fund.
- The Indian Patent and Trademark Office should have given the company a backer assurance.
- By incubation, it must have a proposal letter.
- Under the Startup India scheme, capital gains are exempt from income tax.
- Innovative ideas, goods, or services should be provided by the company.
- SEBI should register angel funds, incubators, accelerators, private equity funds, and angel networks (Securities and Exchange Board of India).
Startup India's registration process
In order to register under the Startup India Scheme, a company must complete all of the requirements listed below.
This step is for businesses that are neither incorporated nor registered as a sole proprietorship.
Registration as a Private Limited Company, a Limited Liability Partnership, or a Registered Partnership Firm is required.
While incorporating any of the above-mentioned business forms, there is no further registration step required under the Startup India programme.
Begin the registration process for Startup India.
The registration process for Startup India is available online. By accessing the Startup India Scheme website, applicants can complete the registration process.
- It is mandatory for startups to register their business on the “Shram Suvidha Portal,” which is run by the Ministry of Labour and Employment.
- Create an account on the Shram Suvidha Portal and log in.
- Once you've logged in, go to the "Is Any of Your Establishment a Startup?" link.
- To register, simply follow the on-screen instructions.
Additionally, filling out the form relevant to business operations and future goals is required for start-ups.
Obtain DPIIT Certification
Following the creation of a profile on the Startup India website, the company must apply for DPIIT recognition. This recognition allows businesses to take advantage of benefits such as access to high-quality intellectual property services.
Application for Recognition
The next step is to complete the startup recognition form and submit it.
Submit the required paperwork for registration.
Submit the listed paperwork required for the registration process.
Other Information About the Business
In a nutshell, startups must provide a brief explanation of the activities that their company engage in, such as product/service or both. They should show evidence that their company is forward-thinking.
Ascertain that your company is actively engaged in solving an issue or striving to improve an existing service or product in a comprehensive and inventive manner.
The government of India has launched the Startup India programme to develop and assist the startup ecosystem in India. Startup India's registration process is likewise simple and straightforward.
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Frequently Asked Questions
The major goal of the Startup India programme is to encourage the creation of new businesses in India. The government has taken several important steps under this strategy to create a strong startup environment and turn India into a country of job producers rather than job seekers.
The startup India plan can be used by organisations that are registered as a Private Limited Company, Partnership Firm, or Limited Liability Partnership.