Overview of Startup India Registration

Government of India has introduced the Startup India scheme in 2016. The primary motive of this scheme is to promote the growth of start-ups in India. Under this scheme government has taken several vital steps for building a robust startup ecosystem and making India a country of job creators instead of job seekers. Department for Industrial Policy and Promotion (DPIIT) manages the programs under Startup India Scheme. The startup India registration process has broadened the scope of development by creating job opportunities in the Indian economy.

A startup is a recently settled business, normally small which is started by single or group of people. What separates it from other new organizations is that a startup offers another item or service that isn't being given somewhere else similarly. The motives are innovation development.

What is Start up?

A startup is a recently settled business, normally small which is started by single or group of people. What separates it from other new organizations is that a startup offers another item or service that isn't being given somewhere else similarly. The motives are innovation development.

Any company with the following features falls into the category of Startup and is also eligible to avail the benefits of DPIIT

• Age Of The Company

  Company’s Date of Incorporation should not exceed 10 years.

• Type Of Company

  Either your company is a Private Limited Company under the Companies Act, 2013 or is registered under Indian Partnership Act, 1932 as a Partnership Firm or is registered under the Limited Liability Partnership Act, 2008 as a Limited Liability Partnership Firm.

• Turnover Limit

  The company should have an annual turnover which shall not exceed Rs. 100 crore since its incorporation for any of the financial years.

• A New Business Entity

  The business should be new it must not be the result of split or restructure of an already existing business.

• Innovation Friendly

  The startup should be working towards innovation or development of new products or services or in the direction of improvising an existing one. The business model should be highly potential with the purpose to create wealth & generate employment.

• DIPP Certificate

  Obtaining certificate from the Inter-Ministerial Board is essentially required; the Board is set up by the DIPP (Department of Industrial Policy and Promotion).

What are the benefits from DPIIT ?

After creating the profile on the website for Startup India, the next step is to avail the recognition from Department for Promotion of Industry and Internal Trade (DPIIT). This recognition aids the startups in availing benefits which includes accessing of high-quality intellectual property services and other resources, simple winding of company, advantage of self-certification under environment and labour laws, reduction in the norms of public procurement, accessibility to fund of funds, exemption of tax for consecutive three years and exemption on tax on investment above fair market value.

DPIIT registered companies can avail the following benefits provided under Startup India Registration Scheme:

• Simplification And Handholding

  With much easier compliance and an exit process for failed start-ups, legal support has also become feasible and smooth.

• Funding And Incentives

  Exemption is provided on income Tax and Capital Gain Tax, apart from that funds are raised to infuse more capital into the startup.

• Incubation And Industry Academia Partnership

  Developing number of incubators and innovative labs, events, competition and grants.

What are the benefits of Registration under Startup India?

The various benefits of getting registration for Startup India are given below:

The government of India offers several benefits to the start-ups working under the umbrella of startup India programme. List of benefits provided under startup India Registration scheme are written below:

• Tax Benefit

  Startups working under start up India registration scheme can enjoy the benefit of exemption for three years. Income Tax Exemption benefits available under section 80IAC and section 56 for Angel Tax relief .

• Tender Participation

  Government and PSU give relaxation for Startups in various tenders. They are allowed to participate in public procurement job through tenders. Other benefit includes relaxation in previous experience, EMD or in the criteria of Turnover.

• Opportunity of Government funding-

  Through Alternate Investment Funds, the Government has allotted Rs 10,000 crore funds for investing into startups. The management of this fund is done by SIDBI. All the Startups are eligible for applying under this quota.

• Participate in various Government Scheme

  There are various Government schemes issued by the Government from day to day for motivating the startups to participate. For example: assistance of raw material, sustainable finance scheme, facilitation of bank credit, etc.

• To participate in Start- up grand challenges

  The reputed companies motivate the startup entrepreneurs and encourage them to participate in giving business solutions. This gives an opportunity to the entrepreneurs of the startup to participate in the scheme and earn more funding. Lately, these reputed companies like Whatsapp, Aditya Birla, Mahindra and many more companies has involved with the Start up enterprises to organise financial assistance scheme.

• Easy Winding up

  The process of winding up of company becomes easy and it takes 90 days to wind up under insolvency & Bankruptcy code 2016.

• Connect Networks

  The benefit of Startup is that it helps the companies in building network and look for bigger connection. These Startup companies search for various big companies and connect with them with the purpose to get mentorship. The connection with the investors and industries are really advantageous for the start up enterprises.

• Self-Certification

  Startups avail the benefit of compliance self-certification with different labour laws and nine environment laws.

• Rebate In Patent Filling

  Startups working under startup India registration scheme will get 80% rebate at the time of patent application filling.

• Rebate In Trademark Filling

  The government assures to provide 50% rebate on trademark filing to those start-ups who are working under this scheme.

• Business Opportunity

  Startup India is a platform which gives multiple opportunities, recognition and support to all the start-ups who are working hard to carve out a niche for them.

Documents required at the time of Startup India Registration Process

• Registration Certificate

  It is essential for you to upload the certificate of incorporation of your company/LLP (Registration Certificate in case of partnership)

• Email id and mobile number including contact details
• Company details which shall include the Industry, Sector of work, the category of dealing, registered Office Address etc.
• Evidence of concept like pitch deck, video, website link in case of a early traction and validation.
• The details about the Directors or Partners involved with the company which shall include their Name, Photo ID, Gender, Contact number, Email ID, Address)
• The details of the authorised representatives ( Name, contact details, Designation, Email ID)
• Revenue model and Uniqueness of the Product.
• PAN details
• A Brief Description Of Business

  Provide a quick description of the innovative nature of your business.

Eligibility for Startup India Registration

• The organization to be framed must be a private limited organization or a limited liability partnership.
• The enterprise has not completed a period of ten years from the date of incorporation or from the registration date.
• The enterprise did not have a turnover exceeding 100 crore annually for any of the financial years since its incorporation.
• The enterprise should be working towards the development, innovation or improvement of the services or processes with the purpose to generate employment or create wealth.
• The most important eligibility condition is that the Startup enterprise must not form by reconstructing or splitting up any business which is already in existence.
• The organizations ought to have gotten the approval from the Department of Industrial Policy and Promotion (DIPP).
• In order to get approval from DIPP, the firm ought to be supported by an Incubation fund, Angel Fund or Private Equity Fund.
• The firm ought to have gotten a supporter guarantee from the Indian patent and Trademark Office.
• It must have a proposal letter by incubation.
• Capital increase is excluded from income tax under the startup India scheme.
• The firm should give innovative ideas, products or services.
• Angel fund, Incubation fund, Accelerators, Private Equity Fund, Angel network should be registered under SEBI ( Securities and Exchange Board of India).

The Registration process of Startup India

A business needs to cover the journey of the below mentioned steps in order to register under the Startup India Scheme.

• Business Incorporation Stage

  This progression is for organizations that are neither incorporated nor registered under the proprietorship form of business organization.

  It is compulsory to register either as a Private Limited Company or a Limited Liability Partnership or a Registered Partnership Firm.

  Though, there is no additional registration step is needed under the Startup India program while incorporating any of the above-discussed business forms.

• Initiate The Startup India Registration Process

  Startup India registration process is available online. Applicant can execute the process of registration by visiting the website of Startup India Scheme.

  1. It is essential for startup to register their company in the portal owned by the Ministry of Labour and Employment “Shram Suvidha Portal”

  2. Register at Shram Suvidha Portal and then login.

  3. Once the login is done, click on the link “Is Any of your Establishment a Startup?”

  4. Follow the instructions to get registered.

  Also, it is mandatory for start-ups to fill the form related to business operations and future goals.

• Get the DPIIT Recognition

  After creating the profile on the website of Startup India, the enterprise is required to obtain the recognition from DPIIT. This recognition is helpful for the enterprises to avail benefits like accessing to the standard quality of intellectual property services,etc.

• Recognition Application –

  The next step would be to fill up the startup recognition form and click on submit.

• Submit the Documents for registration.
• Other Details About The Startup In Brief

  Startups require submitting a brief description of the activities their businesses are involved in, ie, product/service or both. They should provide information that proves that their business is innovative.

  Make sure that your business is comprehensively and innovatively involved in solving a problem or is working with regard to improvise the existing service or product.

  To promote and support the startup ecosystem in India, government of India has introduced the startup India program. The registration process of startup India is also easy and rationale.