Startup India is Government of India initiative that aims to create an efficient system for nurturing innovation and entrepreneurs in the country in order to drive long-term economic growth and provide large-scale job opportunities. The government wants to encourage startups to develop through innovation and design through this initiative.
Startup India
India’s startup sector is growing. The government also helps young entrepreneurs start businesses. Startups support the growth of the country’s economy. A startup is a business that provides new products or services that solve a problem that society faces. A startup may also rework an existing product or service to make it better.
Starting a business is an exciting journey, and the Startup India scheme in India has given entrepreneurial adventures a new dimension. The Startup India Registration Certificate, which confirms to a company’s innovative and prospective identity, is an important aspect of this venture.
The Indian government, under the leadership of Prime Minister Narendra Modi, launched and promoted the Startup India scheme in order to strengthen the Indian economy, recognize and encourage companies, and bring in excellent entrepreneurs, innovators, businessmen and founders.
The Startup India Movement’s goals are described below. The action plan includes the following elements:
- Improved infrastructure, including establishments for incubators.
- Facilitation of intellectual property rights, including simpler patent filing.
- Better regulatory environment, including tax savings, simpler compliance, enhanced company formation, quickest process, and more.
- Increasing financing opportunities is an aim.
- Provide a large networking database for entrepreneurs and other startup ecosystem players.
What is the Startup India Registration?
Startup India Registration is the DPIIT’s (Department of Promotion of Industry and Internal Trade) registration of startups. This identification enables Startups to take use of the Government’s flagship Startup India Scheme. The Startup India Scheme, which was launched in January 2016, intends to build a strong environment for developing companies and their creative products. The goal is to achieve the long-term goals of job creation and financially growth in the country.
Key Features of Startup India Registration
Startups play a pivotal role in driving innovation and economic growth, and the Startup India Registration Certificate is a testament to the government’s commitment to fostering this entrepreneurial spirit. Let’s delve into the key features that make this registration process a game-changer for budding businesses:
1. Eligibility Criteria Clarity
The startup registration process begins with clear and defined eligibility criteria. This transparency ensures that businesses fitting the criteria can confidently pursue registration, bringing clarity to the application process.
2. Simplified Application Process
The Startup India initiative strives to make the registration process user-friendly. The application procedure is designed to be straightforward, with step-by-step guidelines, minimizing the bureaucratic hurdles that startups often face.
3. Documentation Streamlining
To ease the burden on startups, the required documentation is streamlined. This ensures that the necessary paperwork is concise and relevant, allowing businesses to focus on their operations rather than drowning in paperwork.
4. Government Scheme Access
One of the standout features of Startup India Registration is the access it grants to various government schemes and incentives. Registered startups can tap into resources and support that can significantly boost their growth trajectory.
5. Tax Benefits for Registered Startups
Tax incentives are a significant lure for startups considering registration. The certificate opens doors to a range of tax benefits, including exemptions and deductions, providing financial relief during the crucial early stages of business.
6. Credibility and Recognition
The Startup India Registration Certificate is not just a legal document; it is a badge of credibility. Registered startups gain recognition in the market, instilling confidence in investors, customers, and partners.
7. Networking Opportunities
The initiative fosters a sense of community among registered startups. Networking events, mentorship programs, and collaborative platforms provide opportunities for startups to connect, learn, and grow together.
8. Incentives for Research and Development
Recognizing the importance of innovation, the registration certificate incentivizes research and development activities. This encourages startups to invest in groundbreaking ideas and contribute to technological advancements.
9. Faster Winding Up Process
In the unpredictable world of startups, not all ventures succeed. The registration process acknowledges this reality and offers a faster winding-up process for startups that need to cease operations, allowing for a more agile approach.
10. Global Recognition
Startup India Registration extends its benefits beyond national borders. Registered startups gain global recognition, opening doors to international collaborations, partnerships, and funding opportunities.
11. Support for Women Entrepreneurs
Inclusivity is a key focus of the initiative, with special provisions and support for women entrepreneurs. The registration process actively encourages and facilitates the participation of women in the startup ecosystem.
12. Transparent Monitoring and Reporting
The initiative incorporates transparent monitoring and reporting mechanisms. This ensures accountability and allows startups to track their progress in fulfilling the obligations associated with the registration.
13. Online Application and Tracking
Embracing the digital age, the Startup India Registration process is predominantly online. This not only saves time but also provides startups with the convenience of tracking their application status in real-time.
14. Flexibility in Business Structure
Startups come in various shapes and sizes, and the registration process accommodates this diversity. It allows flexibility in the business structure, catering to the unique needs and goals of different startups.
15. Continuous Government Support
Beyond the initial registration, the government continues to support registered startups. Regular updates, communication channels, and periodic reviews ensure that startups stay informed and connected with the evolving entrepreneurial landscape.
The key features of Startup India Registration go beyond legalities; they form a comprehensive support system that empowers startups to thrive, innovate, and contribute meaningfully to the economy. The initiative not only provides a launchpad for startups but also propels them towards sustainable success.
Startup India Registration Eligibility
Startup India, a government initiative aimed at fostering innovation and entrepreneurship, has defined specific eligibility criteria for businesses seeking recognition. To qualify for Startup India Registration, a business must meet the following criteria:
Type of Entity:
The organization to be registered must be a private limited company or a limited liability partnership.
Period of Existence:
The enterprise should not have completed a period of ten years from the date of its incorporation or registration.
Annual Turnover Limit:
The enterprise must not have had a turnover exceeding Rs. 100 crore annually for any of the financial years since its incorporation.
Objective and Focus:
The primary objective of the business should be the development, innovation, or improvement of services or processes with the purpose of generating employment or creating wealth.
Origination of Entity:
The startup must not have been formed by reconstructing or splitting up any business that is already in existence.
Approval from DIPP:
The organization should have obtained approval from the Department of Industrial Policy and Promotion (DIPP).
Support from Funding Entities:
To gain approval from DIPP, the firm must be supported by an incubation fund, angel fund, or private equity fund.
Supporter Guarantee:
The firm should have obtained a supporter guarantee from the Indian Patent and Trademark Office.
Incubation Proposal:
It must have a proposal letter from an incubation facility.
Tax Benefits:
Capital increase is excluded from income tax under the Startup India scheme.
Innovative Ideas, Products, or Services:
The firm should demonstrate innovative ideas, products, or services.
SEBI Registration for Funding Entities:
Angel funds, incubation funds, accelerators, private equity funds, and angel networks supporting the startup should be registered under SEBI (Securities and Exchange Board of India).
Meeting these eligibility criteria is crucial for startups aspiring to register under Startup India. These criteria ensure that recognized startups align with the initiative’s goals of promoting innovation, economic growth, and employment opportunities.
Documents Required for Startup India Registration
Starting a business in India is an exciting endeavor, but it is complicated with documents, paperwork and laws. The Startup India Registration procedure, which is intended for encouraging innovation and entrepreneurship, necessitates careful observation of detail. It is important to gather and submit all relevant documentation in order to ensure a smooth registration process. Let’s have a look at the complete list of documents necessary for Startup India Registration.
I. Importance of proper documentation
Startup India is a government of India initiative that seeks to encourage and support aspiring entrepreneurs. Registration under this plan provides up opportunities for financing, tax breaks, and other perks.
The fundamental component of a successful startup registration is accurate and full documents. It not only speeds up the procedure but also guarantees that all legal criteria are met.
II. Basic Personal Information
A. Founder details
Provide detailed information about the founder, including name, address, and contact details.
B. Contact information
Ensure all contact details mobile and email id are active to facilitate smooth communication during the registration process.
III. Company Information
A. Name and type of the company
Choose a unique and suitable name for your company, along with specifying the type of business structure.
B. Business structure
Clearly define the structure of your business, whether it’s a private limited company, LLP, or any other form.
IV. Address Proof
A. Registered office address
Submit valid proof of your registered office address, such as utility bills or a rental agreement.
B. Utility bills or rental agreement
Provide recent utility bills or a notarized rental agreement to validate the authenticity of your office space.
V. Identity Proof
A. PAN card of the founder
Include a copy of the founder’s PAN card for identity verification.
B. Aadhar card of the founder
Submit a copy of the founder’s Aadhar card as an additional proof of identity.
C. Passport Size Photograph of the founder
Submit a copy of the founder’s photograph as an additional proof of identity.
VI. Business Plan
A. Overview of the business
Present a comprehensive business plan outlining your objectives, target market, and growth strategy.
B. Future projections and goals
Include realistic projections for the future, showcasing the potential success and impact of your startup.
VII. Memorandum of Association (MOA) and Articles of Association (AOA)
A. Explanation of MOA and AOA
Provide a clear explanation of the Memorandum of Association and Articles of Association.
B. Importance in the registration process
Highlight the significance of MOA and AOA in the startup registration process, as they define the company’s structure and operations.
VIII. Bank Statement
A. Business bank account details
Submit a recent bank statement featuring the details of your business account.
B. Minimum balance requirements
Ensure your account maintains the minimum balance required for startup registration.
IX. Intellectual Property Rights (IPR) Documents
A. Trademark registration
If applicable, provide documents related to trademark registration for your company’s brand identity.
B. Patent or copyright documents
Include any patents or copyrights associated with your products or services.
X. Incorporation Certificate
A. Proof of company registration
Attach the certificate of incorporation as proof of your company’s legal existence.
B. Issuing authority details
Include information about the authority that issued the incorporation certificate.
XI. Tax-related Documents
A. PAN card of the company
Furnish a copy of the company’s PAN card for tax-related purposes.
B. GST registration, if applicable
If applicable, provide the GST registration details for your startup.
XII. Employee-related Documents
A. Employee identification details
Compile identification details of your employees, including PAN cards and Aadhar cards.
B. Employment contracts, if any
If applicable, include copies of employment contracts to establish your workforce structure.
XIII. NOC from the Landlord
A. No Objection Certificate for using premises
Obtain a No Objection Certificate from your landlord to use the premises for your business.
B. Landlord’s contact information
Include contact details of your landlord for verification purposes.
XIV. Affidavit and Undertaking
A. Legal declarations by the founder
Provide affidavits and undertakings as per legal requirements, affirming the accuracy of the information provided.
B. Importance in legal compliance
Emphasize the importance of affidavits and undertakings in ensuring legal compliance during the registration process.
Note: We suggest submitting soft copies of documents together with the completed questionnaire we provide you. We will check the information and legal documents that you send us. Please contact us if you require any other information.
Steps to Register Your Startup With Startup India
Step 1: Incorporate your Business
You must first register your company as a Private Limited Company, a Partnership firm, or a Limited Liability Partnership. You must follow all of the standard processes for business registration, such as submitting the registration application and getting the Certificate of Incorporation/Partnership registration.
By submitting a registration application to your region’s Registrar of Companies (ROC), you can form a Private Limited Company or a Limited Liability Partnership (LLP). You can form a Partnership Firm by completing an application for registration with the Registrar of Firms in your region. Along with the registration application, you must submit the necessary papers and fees to the Registrar of Companies or Registrar of Firms.
Step 2: Register with Startup India
The company must then be registered as a startup. The entire procedure is straightforward and may be completed online. Go to the Startup India website and press the ‘Register’ button, as indicated below.
Enter your name, email address, mobile phone number, and password, then click the ‘Register’ button.
Next, input the OTP that was provided to your email, as well as additional information such as the kind of user, name, and stage of the startup, and click the ‘Submit’ button. The Startup India profile is established when these facts are entered.
After creating a profile on the website, companies may apply for different acceleration and incubator/mentorship programs, as well as get access to learning materials, funding alternatives, government schemes, and market access.
Step 3: Get DPIIT Recognition
Following the creation of a profile on the Startup India website, the next stage is to get Department for Promotion of Industry and Internal Trade (DPIIT) recognition. This recognition enables startups to benefit from advantages such as access to high-quality intellectual property services and resources, relaxation of public procurement norms, self-certification under labor and environmental laws, easy company winding, access to Fund of Funds, tax exemption for three consecutive years, and tax exemption on investment above the market value at the time.
To obtain DPIIT Recognition, log in to the Startup India website using your registered profile (account) credentials and select the ‘Apply for DPIIT Recognition’ option under the ‘Recognition’ page.
On the following screen, click the ‘Apply Now’ button. It will take you to the website of the National Single Window System (NSWS). Companies and LLPs must register on the NSWS website, complete the ‘Registration as a Startup’ form, and fill out the ‘Startup accreditation Form’ to obtain DPIIT accreditation.
Step 4: Recognition Application
You must fill out the ‘Startup Recognition Form’ with information such as the entity data, complete address (office), authorized representative details, directors/partner details, information requested, startup activities, and self-certification. Enter each part of the form by clicking on the + symbol on the right-hand side of the form.
After filling out the ‘Startup Recognition Form,’ accept the terms and conditions and click the ‘Submit’ button.
Step 5: Documents for Registration
- Incorporation/Registration Certificate of your company’s establishment
- Proof of financing, if applicable
- Letter of authorization from the authorized representative of the company, LLP, or partnership firm
- Proof of concept, such as a pitch deck/website link/video (in the event of a startup in the validation/early traction/scaling stages).
- Details on patents and trademarks, if applicable
- PAN Number, list of prizes or certificates of recognition
Step 6: Recognition Number
That’s all! When you apply, you will be assigned a recognition number for your startup. The certificate of recognition will be granted following the assessment of all of your documentation, which is normally completed within two days of submitting the information online.
Step 7: Other Areas
Patents, trademarks, and/or design registration: If you require a patent for your idea or a trademark for your firm, you may easily approach any of the government-issued facilitators. You will just have to pay the statutory fees, resulting in an 80% savings in fees.
Funding: Access to capital has been one of the most difficult obstacles for many entrepreneurs. Entrepreneurs struggle to attract investors due to a lack of experience, security, or established cash flows. Furthermore, many investors are turned off by the high-risk character of startups, as a large number fail to take off.
To give finance help, the government established the Startup India Seed Fund Scheme (SISFS) on January 21, 2021, with an outlay of Rs.945 crore to provide financial assistance to entrepreneurs over the following four years.
Self-certification under employment and labor legislation: Startups can self-certify under labor and environmental laws to decrease compliance expenses. Self-certification is available to lessen regulatory load, enabling them to concentrate on their primary business. Startups can self-certify their compliance with six labor statutes and three environmental rules for three to five years from the date of formation.
Units operating in 36 white category industries, as listed on the Central Pollution Control Board’s website, do not need permission under three environment-related Acts for three years.
Tax Exemption: Startups are free from paying income taxes for three years. However, in order to get these benefits, individuals must be validated by the Inter-Ministerial Board (IMB). Startups formed on or after April 1, 2016 are eligible for income tax exemption.
Startup India Benefits
The following are the different benefits of registering with Startup India:
The Indian government provides many perks to start-ups operating under the Startup India initiative. The following is a list of the benefits given by the Startup India Registration scheme:
Tax Savings
Startups registered under the Start Up India initiative are eligible for a three-year exemption. Income tax rebates are granted under sections 80IAC and 56 for Angel Tax relief.
Participation in Government Tenders
In numerous tenders, the government and public sector entities provide relief to startups. They are permitted to compete in public procurement jobs through tenders. Another advantage is a reduction in prior experience, EMD, or Turnover criterion.
Government financing opportunity
The government has given Rs 10,000 crore cash for investing in businesses through Alternate Investment cash. SIDBI is in charge of managing this money. Under this quota, all Startups are entitled to apply.
Participate in a variety of government schemes.
The government issues several government initiatives on a daily basis to encourage entrepreneurs to participate. For example, raw material support, a sustainable finance scheme, bank credit facilitation, and so on.
To take part in the Start-up Grand Challenges
Reputable corporations encourage and motivate new entrepreneurs to join in providing business solutions. This allows startup entrepreneurs to engage in the plan and gain additional investment. Recently, famous corporations like as Whatsapp, Aditya Birla, Mahindra, and many more have partnered with start-up organizations to organize a financial support initiative.
Easy winding up
The procedure of winding up a firm becomes simple, and it only takes 90 days under the Insolvency and Bankruptcy Code 2016.
Startup Communities Network
The benefit of Startup is that it assists businesses in creating networks and seeking larger connections. These startup enterprises look for large corporations and interact with them in order to obtain mentoring. Connections with investors and industries are extremely beneficial for new businesses.
Self-Certification
Startups can self-certify their compliance with several labor rules and nine environmental statutes.
Patent Filling Rebate
Startups registered under the Startup India initiative would receive an 80% discount on patent application fees.
Trademark Filling Rebate
The government promises to provide start-ups working under this initiative a 50% discount on trademark application.
Opportunity for Business
Startup India is a platform that provides numerous possibilities, recognition, and assistance to all start-ups working hard to carve out a place for themselves.
How We Assist in Startup India Registration Online?
Our organization offers complete support with the Startup India Registration Process. We have a professional team that will handle your application and documents. They make certain that the information supplied is accurate, up to date, and validated. We also walk our clients through the qualifying requirements to guarantee that their applications are approved without delay. With our assistance, you greatly improve your chances of obtaining DPIIT Startup Recognition quickly and at a lower cost.
Expert Guidance
We offers a team of business specialists who can help you every step of the way.
Strong Team
Our experts will evaluate your company’s eligibility compliances and can assist with company registration. They will give thorough instruction throughout the procedure.
Quick Documentation
We will assist you with filing the necessary documents and offer an in-depth representation of the Startup India plan. Contact us straight away to begin the procedure as soon as possible.
Realistic Expectation
Make sure your interactions with government personnel and the procedure run as smoothly as possible. You can contact our specialists whenever you want.
Frequently Asked Questions (FAQs) on Startup India
What is the legal definition of a startup in India?
A startup is defined as an enterprise based in India that was established less than ten years ago and has an annual revenue of less than 100 crores (US$14 million).
What is the main objective of the Startup India Scheme?
The main objective of the Startup India scheme is to encourage the growth of start-ups in India. Under this strategy, the government has taken numerous critical measures toward establishing a healthy startup ecosystem and transforming India into a country of job creators rather than job seekers.
How long does it take for a startup to be successful?
Most small businesses take at least two to three years to become profitable, and they only become fully successful after seven to ten years. Despite the rapid success achieved by companies like Facebook, most small businesses take years to become profitable.
What advantages does DPIIT provide?
The advantages of DPIIT are as follows:
Handholding and Simplifying
Incentives and funding
Incubation and Industry-Academia Collaboration
How much time is needed for setting up a private limited company in India?
It will take no more than 1-5 days if all of your documents are in order. However, this is dependent on the startup India registrar’s workload.
What is the eligibility of designated partners/partners in an LLP?
A partner can represent an individual, a firm, or an LLP. However, only one person can become a ‘designated partner’ in an LLP.
What kind of start-ups commonly register LLPs?
LLPs are typically registered by start-ups that have no plans to apply for venture capital investment. Because venture capitalists only invest in private and public limited enterprises, this is the case.
How will I know if my Startup India registration has been completed?
When the application is completed and the startup has been identified, you will obtain a system-generated Startup India certificate of recognition. You will be able to download this testimonial from the Startup India website.
Is it cheaper to run an LLP than a private limited company?
Yes, running an LLP is less expensive than running a private limited company, especially in its earliest days. This is because several compliances, such as audits, apply to LLPs only once they have a significant turnover. In their first year, most LLPs spend around half as much as a private limited company on registrations and compliance.
Why do investors put money into new startup companies?
Investing in a startup is a risky bet, but the minimal need for overhead capital combined with the huge upside potential makes it worthwhile for investors to put their money into new enterprises.
Can a existing business register as a startup in the portal?
Yes, under the legislation, a present company can register as a startup if it fits the suggested startup characteristics. They will also be able to take advantage of certain tariff and IPR incentives that are available to new businesses.
What is the difference between an accelerator and an incubator?
Startup incubators frequently serve as organizations that assist entrepreneurs in developing their businesses, particularly in the early stages.
Startup accelerators help businesses get off to a good start and grow.
Which industry is the best in India for a startup?
According to the Economic Times, the top-earning industries in India in 2020 would be financial services, transportation and support services, aerospace, defense, and security services, technology services, and health and education services.
Who is eligible to register with Startup India?
The Startup India plan is open to organizations registered as a Private Limited Company, Partnership Firm, or Limited Liability Partnership.
Can I get a certificate if my registration is successful? If so, will I be able to obtain the certificate?
Once the registration is complete, you will be able to get a system-generated verified certificate of recognition.
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