Undoubtedly, start-ups are the key performance indicator of the developing economy of a country. In India, the brand like Zomato, BookMyShow, Swiggy, and Foodpanda has shown how a startup can reap tremendous popularity in a short span of time. But not all startups are blessed with adequate funding and government backing. That is the reason why most of the startups in India fail to survive in the Indian market. Keeping that disparity in view, the Indian government has launched a brand new scheme under the name- Startups India. The platform is has been established to welcome new business ideas and support aspiring entrepreneurs. In the article, we will explain everything about the Process of Startup India Registration.
What is a startup?
A startup is a new business entity that advocates innovation. These entities are more likely to rely on unique business goals, which set them apart from the competition. Nearly all startups initiate with a unique business idea, but most of them last for months due to inadequate resources.
Read our article:Benefits of Startup India Registration in India
Process of Startup India Registration
Below is the step by step guide that will let you complete the registration process for Startup India Scheme.
Step 1: Incorporate your business
Firstly, you need to turn your business into a legal entity. To do so, you need to register your business as a Private Limited Company or an LLP, or a Partnership firm. The applicant can visit an MCA portal and file an application for company registration.
Step 2: Register under Startup India
Visit the Startup India website for registering your company under the Startup India scheme. As soon as you land on this portal, you will find an application for registration. Make sure to go through the form in detail and fill it up accordingly. The application will go along with some mandatory documents in a scanned form.
Step 3: Upload documents in a PDF format
You need a recommendation letter as well as the registration form. Choose one of the recommendation letters from the following list.
- A recommendation letter ( in a format certified by the DIPP) from an incubator (Post-graduate college); OR
- A recommendation letter issued by the government-oriented incubator; OR
- A letter issued by the incubator backed by the government authority, in DIPP format; OR
- A recommendation letter issued by the angel investor or other entity registered with SEBI that advocates the innovative nature of business; OR
- A letter from the State or Central Government; OR
- A patent filed and published in the Journal of Indian Patent Office in areas affiliated with its nature was promoted.
Step 4: Provide information’s Regarding Tax Exemption
In India, startups don’t need to address any tax liabilities for the first three years. However, these benefits would only become feasible when the firm is registered under the Inter-Ministerial Board (IMB).
Step 5: Stipulates for the Self-certification
- Your firm must be registered as a Private limited company, or partnership firm, or LLP.
- Your business must be a legal entity and incorporated in the country, not before five years.
- The turnover of the business must not exceed the RS 100 Cr. mark.
- The company must advocates innovative ideas.
- Your business must adhere to the uniqueness, and it should not replicate the existing business.
Step 6: Avail Recognition Number
Upon submitting the application for registration, the portal will render the recognition number with immediate effect. You will get the registration certificate only after when authority scrutinized the uploaded documentation. Be cautious while uploading the data on the portal, as any disparities in it could lead you to a hefty penalty, which is precisely 50% of your paid-up capital or Rs 25k.
Start-ups approved by DIPP are eligible to avail IPR benefits without requiring any approval from IMB. Consult a lawyer in case if you need a patent or copyright for your business. You will need to address the legal fees. Therefore, you, obtaining an 80% reduction on the registration fees for intellectual property.
Documents Required for Startup India Registration
- Registration certification or Certificate of Incorporation of a business entity
- Copy of PAN card
- Memorandum of association or Article of Association for LLP or partnership firm.
- Particulars of the directors such as name, contact details, and photographs.
- Entity’s social profile or website link.
- IPR related information if any.
- Fund detail in case an entity avail any funding help from investors.
- List of awards or certificates of recognition, if any.
Arranging fund is probably the most challenging task for most of the startups. Due to a lack of resources, experience, and cash flow, the business owners often fail to reap FDI. Since startups are inherently more exposed to failures, they often perished in the initial stage. So in order to render fiscal support, the Indian government has set up an initial corpus of funds worth Rs 10,000 crore for a period of 4 years. However, the available fund will not be directly routed to startups. Instead, it will be accessible through SEBI registered Venture Funds.
Startups India Scheme plays a vital role in supporting the economy by creating a considerable number of jobs in all sectors. The scheme is meant to welcome contemporary and innovative business ideas from startups that unable to pursue their business due to inadequate resources. As soon as an entity is registered to this scheme, they will get access to endless government tenders and tax exemption to ensure seamless business growth. Feel free to confront out experts if you need some assistance on the Process of Startup India Registration.