Startup India Registration (DPIIT)
Business startups in India are both exciting and rewarding affairs. India is a huge market offering tremendous opportunities. However, registering your startup is indeed tricky due to numerous rules and regulations and a cumbersome process. Here is a simple guide to help you understand all about startup registration in India Online.
What is the Startup India Scheme?
The Startup India initiative was launched on 16th January 2016 to fast-track the growth of new businesses and job creation. It works under the Department of Promotion of Industry and Internal Trade.
Why Should You Register Under Startup India?
1. Legal Link-ups and Protection
Your company becomes a legal entity on its own. This means, you can do business, employ people, or sign contracts. It also protects the owner from personal legal risks.
2. Enhancement in Terms of Credibility
Registering your company makes it more credible to the clients or other business associates. It identify them as a serious and legal business to them.
3. Government Incentives and Programs
The registered startups can avail government benefits like tax exemption and access government programs for new businesses.
4. Funding Opportunities
A registered startup can attract investors, which is essential for growth. Investors give higher priority for investing in a legal entity.
5. Tax Exemptions
Registered startups can get tax exemption under certain sections that help in saving money and increasing profit margins.
6. Easy Exit
Selling or transferring of the entity becomes easier in the case of a registered company. The ownership structure will be clear, and the process will become smooth.
Eligibility for Startup India Registration
1. Age Requirement
Applicants must be between 18 to 65 years old.
2. Type of Entity
Your business can either be a private limited company, a registered partnership firm or a limited liability partnership.
3. Annual Turnover
Your company’s annual turnover cannot exceed Rs 100 crore. This tag can be continued for a period of up to ten years from the date when it was registered.
4. DIPP (Department of Industrial Policy & Promotion) Approval
Approval from DPIIT (Department for Promotion of Industry and Internal Trade) shall be obtained by the organization.
5. Funding
Funding from Incubation Fund, Angel Fund or Private Equity Fund should be registered with SEBI.
Steps for Registration in Startup India
1. Incorporate Your Business
Incorporate your business as either a Private Limited Company, Partnership firm, or Limited Liability Partnership. Obtain necessary documents such as PAN, certificate of incorporation, Director Identification Number, and Digital Signature Certificate.
2. Register with Startup India
Log in to the Startup India website, fill in the application form, and upload the necessary documents. Create a profile for access to programs, mentorship, and resources.
3. Upload Necessary Documents
Convert all documents into PDF format including a letter of recommendation, certificate of incorporation, and detailed business description.
4. Applying for Tax Benefits
Every startup in India is allowed to have tax exemption on their income for the first three consecutive years if certified by the Inter-Ministerial Board(IMB).
5. Self-Certification
Check whether one’s business has all the eligibility conditions, as not more than five years old and working on a new and innovative idea and legally registered in India.
6. Obtain Recognition Number
Your recognition number will be accorded once your application is complete. Be particular while uploading documents at this stage; otherwise, you end up paying fines.
Required Documents to be Kept Ready for Registration
- Certificate of Incorporation
- Memorandum of Association or Articles of Association
- Filled form
- Passport-size photographs
- PAN and company details
- Details about directors and partners
- Links to the Social Media Handles or firm Website link
- IPR-related information, if any
- Funding detail
- Awards or recognition, if any
Features of Startup India Registration
1. Simplified Compliance
Startups can self-certify compliance, which eliminates much of the paperwork and allows attention toward business matters.
2. Centralized Support Hub
A one-stop contact for the entire startup ecosystem bringing together all the stakeholders on one platform—businesses, academics, industries, incubators, accelerators, and funding bodies—to share knowledge and collaborate.
3. Digital Engagement Platform
A mobile application and portal that enables startups to engage with the government, gain access to information, and upload documents.
4. Startup Showcases
Events providing national and international visibility to startups.
5. Innovation Centres
Incubation and research facilities at National Institutes leading to a culture of innovation.
6. Research Parks
Joint research and development parks, which close the gap between academia and industry even further.
Government Schemes for Start-Ups
- ATAL Innovation Mission (AIM)
- Pradhan Mantri Mudra Yojana (PMMY)
- Startup India Seed Fund Scheme (SISF)
- Venture Capital Assistance VC
- Credit Guarantee Trust Fund for Micro and Small Enterprises CGT-MSE
- Credit Linked Capital Subsidy CLCS
- Multiplier Grants Scheme MGS
- New Generation Innovation & Entrepreneurship Development
Conclusion
Registering a startup in India involves several steps and requires careful planning. Make sure to choose the right business structure, obtain necessary licenses, and comply with all regulations. Consulting legal and financial professionals can help you navigate the process smoothly. With proper guidance, you can successfully register your startup and enjoy the benefits provided by the Startup India program.
Kickstart your entrepreneurial journey with confidence with Vedkee Associates. They make sure that you have a seamless experience while registering your startuo under Startup India. Contact us to kick-start your business venture and convert your innovative ideas into a successful business.
Call us at (+91 981-023-8067
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