Startup India
Startup India Registration:
Get Startup India Registered With Us !
INR 4,499/-Â Â All Inclusive
INR 7,499 /- , 3,000/-Â Off
Expert Consultancy, Copmany Incorporation, Documents preparation for Startup, Submission of Document to the Startup portal, Follow up and Recognition.
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STARTUP INDIA REGISTRATION
A. About
Startup India Programme is a flagship initiative of the Government of India, aimed at building a strong ecosystem that nurtures innovation and startups in the country. This initiative helps to drive sustainable economic growth and generate large scale employment opportunities.
B. What is a Startup?
As per the Department for Promotion of Industry and Internal Trade (DPIIT), a company is considered a startup if it meets the following criteria:
- Age of the Company: The entity should not be older than 10 years.
- Type of Entity: The entity should be incorporated as a Private Limited Company, a Registered Partnership Firm, or a Limited Liability Partnership (LLP).
- Annual Turnover: Annual turnover should not exceed ₹100 crore in any of the financial years since incorporation.
- Innovative and Scalable: The entity should be working towards innovation, development, or improvement of products or processes or services, or if it is a scalable business model with a high potential for employment generation or wealth creation.
- Not Formed by Splitting: The entity should not have been formed by splitting up or reconstructing an already existing business.
C. Benefits of Startup India Registration
Registering a startup under the Startup India initiative offers several benefits, including:
- Self-Certification: Startups can self-certify compliance under six labor laws and three environmental laws to reduce regulatory burden.
- Tax Exemptions:
- Income Tax Exemption: Startups can apply for income tax exemption for three consecutive financial years out of their first ten years since incorporation.
- Tax Exemption on Investments: Investments above the fair market value are exempted from the angel tax.
- Government Grants and Funds: Access to government funds and grants under the Fund of Funds for Startups (FFS) scheme.
- Easier Public Procurement Norms: Startups get an equal opportunity to compete with larger enterprises in public procurement.
- Intellectual Property Rights (IPR):
- Fast-track and 80% rebate on patent filing.
- 50% rebate on trademark filing.
- Incubation and Industry Partnerships: Access to a network of over 400 startup incubators and industry partnerships.
- Easier Exit: Faster exit for startups with the process being completed within 90 days under the Insolvency and Bankruptcy Code.
D. Compliance Requirements
To maintain their status and reap the benefits, startups must comply with certain requirements:
- Annual Filings:
- MCA Filings: Compliance with Ministry of Corporate Affairs (MCA) requirements including annual returns and financial statements.
- Income Tax Returns: Filing of annual income tax returns.
- GST Filings: If applicable, regular filing of GST returns.
- Periodic Reporting:
- Updates to DPIIT on the startup’s progress and financial status.
- Regulatory Compliance: Adherence to various labor and environmental laws, self-certified under the Startup India initiative.
- Intellectual Property Compliance: Ensure any IPR claimed benefits are properly maintained and registered.
Related Guides
E. Registration Process for Startup India
- Incorporate Your Business: Ensure your business is registered as a Private Limited Company, a Partnership Firm, or a Limited Liability Partnership.
- Register on Startup India Portal:
- Visit the Startup India website.
- Create an account by providing details such as the name of the startup, sector, and category.
- Complete the profile by providing additional details about the startup.
- DPIIT Recognition:
- Log in to the Startup India portal and apply for DPIIT recognition.
- Fill out the application form with details such as the nature of the business, directors, partners, or owners’ information.
- Upload supporting documents, including a certificate of incorporation/registration, a description of how the business is innovative, and details of the business plan.
- Documents Required:
- Certificate of Incorporation or Registration Certificate.
- Description of the business and its innovation aspect.
- PAN Card of the business.
- Proof of funding, if any (optional).
- Submit the Application: Once the form is filled and documents are uploaded, submit the application.
- Application Review: The application will be reviewed by the DPIIT. If the application meets all criteria, the DPIIT will issue a recognition certificate.
F. How do Investors add value to Startups?
Investors particularly venture capitalists (VCs) add value to startups in a lot of ways:
- Stakeholder Management: Investors manage the company board and leadership to facilitate smooth operations of the startup. In addition, their functional experience and domain knowledge of working and investing with startups imparts vision and direction to the company.
- Raising Funds: Investors are best guides for the startup to raise subsequent rounds of funding on the basis of stage, maturity, sector focus etc. and aid in networking and connection for the founders to pitch their business to other investors.
- Recruiting Talent: Sourcing high-quality and best-fit human capital is critical for startups, especially when it comes to recruiting senior executives to manage and drive business goals. VCs, with their extensive network can help bridge the talent gap by recruiting the right set of people at the right time.
- Marketing: VCs assist with marketing strategy for your product/service.
- M&A Activity: VCs have their eyes and ears open to merger and acquisition opportunities in the local entrepreneurial ecosystem to enable greater value addition to the business through inorganic growth.
- Organizational Restructuring: As a young startup matures to an established company, VCs help with the right organizational structuring and introduce processes to increase capital efficiency, lower costs and scale efficiently.
G. General FAQ regarding Start up India Registration
To avail tax benefits, the startup must:
- Get recognition from DPIIT.
- Apply for the income tax exemption with the Inter-Ministerial Board (IMB).
- The startup should be a Private Limited Company or an LLP.
- Exemption can be availed for three consecutive financial years out of the first ten years since incorporation.
The Fund of Funds for Startups (FFS) is a scheme managed by the Small Industries Development Bank of India (SIDBI) aimed at providing funding support for the development and growth of innovation-driven enterprises. FFS does not invest directly into startups, but rather through SEBI-registered Alternative Investment Funds (AIFs).
No, only entities incorporated in India as Private Limited Companies, LLPs, or registered Partnership Firms can qualify as startups under the Startup India initiative.
Startups can exit through a fast-track process under the Insolvency and Bankruptcy Code, 2016. The process involves:
- Applying for voluntary winding up.
- Completing the winding-up process within 90 days from making the application.
Startups are provided:
- Fast-track examination of patent applications.
- 80% rebate on patent fees and 50% rebate on trademark fees.
- Facilitated assistance for filing IP applications through a panel of facilitators.
Compliance requirements include:
- Filing annual returns and financial statements with the Ministry of Corporate Affairs (MCA).
- Filing income tax returns annually.
- Filing GST returns, if applicable.
- Periodic reporting to DPIIT on progress and financial status.
- Â Adhering to labor and environmental laws under self-certification.