The Indian government’s flagship initiative, Startup India, seeks to promote innovation and entrepreneurship by giving would-be business owners a platform to fulfil their aspirations, generate employment, stimulate the economy, and gain access to resources, advice, and assistance from the government. This in-depth manual offers a thorough rundown of the Startup India Registration method, including eligibility requirements, advantages, and a step-by-step guidance.
Join the Growing Community of Entrepreneurs
Register with Startup India to become a part of the constantly expanding network of prosperous business owners! IndiaFilings is here to help you through the Startup India Registration process quickly and easily so you may start down the path to success.
What is Startup India?
The Indian government is working to support and foster the development of entrepreneurs in the nation through an initiative called Startup India. The programme was introduced in 2016 with the goal of making India one of the world’s most active startup ecosystems. Startups can avail various advantages by enrolling in the Startup India programme, such as cash aid, tax exemptions, and incubator access.
Objectives of the Startup India Scheme
Creating a vibrant startup culture and a strong, inclusive ecosystem that promotes innovation and entrepreneurship in India are the main goals of the Startup India Scheme. The management of the Startup India Scheme’s projects and programmes is mostly the responsibility of the Department for Industrial Policy and Promotion (DPIIT).
What is a Startup?
A startup is a company that creates novel goods or services to fulfil societal demands or solve current issues. Startups reimagine current goods and services, providing superior solutions via original concepts and inventive methods. Startups set themselves apart from other emerging businesses with unique items or services that aren’t found anywhere else. Innovation and the desire for expansion and improvement are what propel startups.
Innovative & Scalable
The startup should have a strategy for generating or enhancing a good, procedure, or service, as well as a scalable business plan with a strong chance of making money and hiring people.
Additional Conditions
Entrepreneurs are required to put forth effort to create, implement, or market any good or service that is fueled by cutting edge technology or intellectual property. In order to increase consumer value or workflow, they must also seek to develop new products or enhance already-existing ones.
Approval from DPIIT
Startups need clearance from the Department for Promotion of Industry and Internal Trade (DPIIT) in order to register and receive funding letters from the government, as well as endorsements from accredited incubators and published patents.
Tax Exemption
For the first three fiscal years following their incorporation, recognised startups are exempt from income taxes for the first ten years following their recognition. In accordance with Section 56 of the Income Tax Act, they may also petition for exemption from angel tax.
Patent Application and IPR Services
Startups that have earned DPIIT recognition benefit greatly from processing patents and other IP rights services at a much reduced cost. Startup India offers a 50% reimbursement for trademark applications and an 80% reimbursement for patent applications.
Access to Funding
Startup India offers two funds to support registered startups:
- Fund of Funds for Startups (FFS)
- Startup India Seed Fund Scheme (SISFS)
Easier Public Procurement Norms
Ministries, departments, and public sector organisations are permitted to loosen regulations in any public procurement for startups that have been approved by DPIIT.
Incorporate Your Business
Forming your company as a Limited Liability Partnership (LLP), Partnership Firm, or Private Limited Company is the initial stage. Obtain the Certificate of Incorporation or Partnership registration by following the usual procedures for business registration, which include submitting the registration application.
Register with Startup India
The next step after incorporating is to register your company as a startup. To create a password, go to the Startup India website, select the “Register” button, and enter your name, email address, and mobile number. To create your Startup India profile, enter the OTP (One-Time Password) that was sent to your email, add more information about yourself, including your name, startup stage, and user type, and click “Submit.”
Obtain DPIIT Recognition
The Department for Promotion of Industry and Internal Trade (DPIIT) recognition is a critical step to follow after building your Startup India profile. Startups that receive this recognition can take advantage of a number of advantages, including access to Fund of Funds, tax exemption for three years, self-certification for labour and environmental laws, relaxation of public procurement regulations, and high-quality intellectual property services.
Applying for DPIIT recognition is as simple as logging in to the Startup India website using your registered credentials and selecting the ‘Apply for DPIIT Recognition’ option found under the ‘Recognition’ page. To start the DPIIT recognition procedure, select “Apply as Company or LLP” or “Apply as Partnership Firm” and follow the directions.
Submit the Documents for Registration
To complete the registration process and obtain DPIIT recognition, submit the following documents:
- Incorporation/Registration Certificate of your startup.
- Proof of funding, if any.
- Authorization letter of the company’s authorized representative, LLP, or partnership firm.
- Proof of concept, such as a website link, a pitch deck, or a video.
- Patent and trademark details, if any.
- List of awards or certificates of recognition, if any.
- PAN (Permanent Account Number).
Self-Certification of Eligibility Conditions
Self-certify that your business meets the following conditions:
- Your business is a Private Limited company, LLP, or partnership firm.
- Your business has been incorporated or registered in India for no more than five years.
- Your company’s turnover is not more than Rs. 100 crore.
- Your company is constantly innovating or improving existing systems.
- Your business is based on a fresh idea, not splitting up or reconstructing an existing business.
Obtain Your Recognition Number
As soon as you apply to be registered, you will be assigned a recognition number. Once the government has reviewed all of the documents you uploaded, the certificate of registration or incorporation is issued. When uploading data, be sure it’s accurate because mistakes can result in fines.
If your company meets the qualifying and registration requirements, it can become a member of the Startup India programme and get government-sponsored advantages.
Patents, Trademarks, and Design Registration
Get an 80% cost reduction by approaching any facilitator on the government’s list if your startup needs a patent for an invention or a trademark for commercial purposes.
Funding Support
The government has set up a fund with an initial capital of Rs. 2,500 crore and a total corpus of Rs. 10,000 crore over four years to solve the difficulty in obtaining financing. By sharing in the capital of SEBI-registered venture funds, the fund functions as a fund of funds and obliquely lends money to start-ups.
Self-Certification Under Employment and Labour Laws
Startups can cut compliance costs by self-certifying compliance with labour and environmental rules. Startups may self-certify that they are in conformity with six labour regulations and three environmental legislation for a period of three to five years following the date of incorporation.
Environment-Related Acts Exemption
According to information on the Central Pollution Control Board website, units falling under one of 36 white category industries are exempt from clearance requirements for a period of three years under three environment-related Acts.
Tax Exemption
For three years, startups are immune from income tax. They need to receive Inter-Ministerial Board (IMB) certification in order to be eligible for this benefit.
Final Thoughts
Startup India is a revolutionary programme that provides aspiring Indian businesses with an extensive network of support. You may use the Startup India programme to help your startup succeed by being aware of the requirements, advantages, and registration process. With prompt Startup India registration, professional support, and a seamless and effective registration procedure, IndiaFilings can help you register your startup. Seize the chance and become a part of the thriving Indian startup ecosystem right now!
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