Skip to main content

STARTUP INDIA REGISTRATION

About Start-Up India Registration

An entity shall be considered as a Startup if such entity incorporated as a company or registered as a partnership firm or a limited liability partnership in India then up to 7 years from the date of its incorporation/ registration, however in the case of Startups in the biotechnology sector, the period shall be up to 10 years from the date of its incorporation/registration it may be considered as a startup subject to the other conditions as prescribed. If its turnover for any of the financial years since incorporation/ registration has not exceeded Rupees 25 crores and working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.

Provided that any such entity formed by splitting up or reconstruction of a business already in existence shall not be considered a Startup

Startup India Scheme is an initiative by the Government of India for generation of employment and wealth creation. The goal of Startup India is the development and innovation of products and services and increasing the employment rate in India. Benefits of Startup India Scheme is Simplification of Work, Finance support, Government tenders, networking opportunities.

 

Eligibility:

Ø  The company to be formed must be a private limited company or a limited liability partnership firm.

Ø  The total turnover of the company should be not exceeding 25 crores.

Ø  Registration should not be more than 5 years

Ø  It must have a recommendation letter by an incubation.

Ø  The firm must provide innovative schemes or products.

Ø  It should not be a result of splitting up, or reconstruction, of a business already in existence.

Ø  The firms should have obtained approval from the Department of Industrial Policy and Promotion.

Benefits:

Ø  Tax Exemption: Once an entity gets a Startup recognition, it can further apply for Income tax exemption benefits available u/s 80IAC and U/s 56 relief for Angel Tax relief. Startups enjoy a good amount of benefits under the Income Tax head. The government exempts their 3 years income tax post the incorporation year. But they can avail it only after getting a certificate from the Inter-Ministerial Board.

Ø  Financial Benefits: Under this scheme, the government provides 80% rebate on the patent costs and the process of patent registration and related is faster for them. Also, the government pays the fees of the facilitator to obtain the patent.

Ø  Tender Participation: Under this scheme, the startups get priority in getting government tenders. Also, they are not required to have any prior experience. In many Tenders, Govt. and PSU gives relaxation for Startups to Participation in public procurement job through tenders. Relaxation in Prior experience, EMD or Turnover criteria.

Ø  Govt. Funding Opportunity: Government allotted Rs 10,000 crores funds for investment into startups through Alternate Investment Funds. SIDBI is managing this fund. Startups can apply under this quota.

Ø  Self-Certifications: Eligible for Self-certification and compliance under 9 environmental & labor laws.

Ø  Easy Winding up:  The Windup of startups can be done only in 90 days under insolvency & Bankruptcy code 2016, which provides easy of winding up of entities over the other laws in time being force.

Ø  Connect Networks: Networking Opportunities means the opportunity to meet with various startup stakeholders at a particular place and time. The government provides this opportunity by conducting 2 startups fests annually (both at domestic as well as the international level).

Action Plan of Govt. of India on Startups:

Ø  Funding Support through fund-of-funds with corpus Rs. 10,000 crore. Challenge is that the Government Starts disbursing the Rs. 2500 crore earmarked every year.

Ø  Starting business in one day. The action plan provides entrepreneurs to register a company in one day, against 15-20 days as of now. Challenges include integration of DIN, TAN, Digital Signatures etc.

Ø  No tax on profit, inspection for three years.

Ø  Capital gains tax exemption.

Ø  Credit guarantee scheme.

Ø  No capital gain if money invested in another start up

Ø  Relaxed Norms of Public Procurement for Startups

Ø  New intellectual property rights protection,80% reduction in patent free and fast tracking patent examination

Ø  Special scheme for women entrepreneurs

Ø  Encouragement to incubation centers

Ø  Support to biotechnology start-ups.

 

Documents required for Registration:

Ø  Certificate of Incorporation in case of company or LLP, Registration Certificate and PAN in other case.

Ø  Directors/Partners Details ( Name, Photo, Gender, Mobile No. Email ID, Full Address).

Ø  Company Details (Industry, Sector, Category, Regd. Office Address etc.)

Ø  A Brief about business and products/services and notes on innovations

Ø  Details of Authorized Representative ( Name, Designation, Mobile No. Email ID).

Ø  Revenue model and Uniqueness of the Product.

Ø  Website, if any.

Inclusions in our Package:

Ø  Preparation of all Applications.

Ø  Development of business model and presentation thereof.

Ø  Submission of Applications to various departments to which the company belongs.

Ø  Tracking Status and fulfillment of all the formalities and requirements as and when required till the approval.

Ø  All other Consultancy relating to such.


Comments