Startup India Registrations

Startup India is a Government of India project started of by India’s Prime Minister Narendra Modi, to develop the economy of India and attract talented entrepreneurs. He first revealed the initiative during his Red Fort speech on 15 August 2015 in New Delhi.

Including action plans based on these three pillars:

Simplification and Handholding.

Funding Support and Incentives.

Industry-Academia Partnership and Incubation.

So here is the process to register yourself under this amazing initiative ‘Startup India’ of Indian government to bring ‘Ache Din’.

Step 1: Incorporate your business

At first, you will register your company as a Private Limited Company or Corporation or Limited Liability Partnership. You will meet the standard registration requirements for any company, such as receiving the Incorporation / Partnership Registration Certificate, PAN and other necessary compliances.

Step 2: Register with Startup India

The business must then be licensed as a start-up. The whole process is online and quick. All you need to do is sign in to the website of Startup India and fill in the form with your company information and upload some documents.

Step 3: Documents to be uploaded

a) A letter of recommendation/support

A letter of recommendation with the registration form must be sent. All below will be valid-

  • A recommendation (on the creative nature of business) from an Incubator in a post-graduate college in India, in a format defined by the Department of Industrial Policy and Promotion (DIPP); OR
  • A letter of funding from an incubator that is funded by the Government of India (in relation to the project) as part of any particular invention promotion scheme; OR
  • A letter of recommendation (in terms of business creative nature) from an Incubator recognised by the Government of India in a format stated in DIPP; OR
  • A letter of funding of not less than 20 percent in equity from any Incubation Fund / Angel Fund / Private Equity Fund / Angel Network, duly registered with SEBI, endorsing the business ‘ innovative nature; OR
  • A letter of funding by Government of India or any State Government as part of any specified scheme to promote innovation; OR
  • A patent issued by the Indian Patent Office and published in the Journal in fields specific to the nature of the business being promoted.

b) Incorporation/Registration Certificate

You need to submit the company / LLP registration certificate (Partnership Compliance Certificate)

c) Description of your business in brief

A brief description of your products / services ‘ creative design.

Step 4: Answer whether you would like to avail tax benefits

For 3 years, startups are exempt from income tax. Yet in order to take advantage of these benefits, the Inter-Ministerial Board (IMB) must approve them. DIPP-recognized start-ups, Govt. In India, IPR-related benefits can now be directly available without requiring additional IMB certification.

Step 5: Eventually, you need to be self-certified to meet the following criteria

  • You may declare the new company as a private limited company, joint corporation or partner company.
  • A turnover of less than 25 crores per year is expected.
  • Innovation is a must– the business must strive to invent something innovative or to dramatically improve the existing technologies used.
  • The breakup or restoration of an existing company must not interfere in your business.

Step 6: Immediately get recognition number

When you apply, you will receive a recognition number for your startup immediately. Upon checking all your papers, the certificate of acknowledgement will be given.

Be careful, though, when uploading the documents. If it is found on subsequent verification that the required document is not uploaded / wrong document uploaded or that a forged document has been uploaded, you will be liable for a fine of 50% of your paid-up start-up capital with a minimum fine of Rs. 25,000.

Step 7: Other parts to keep in mind

a) Patents, trademarks and/or design registration

If you need an innovation patent or a trademark for your business, you can easily access any one from the government’s list of facilitators. You will only have to bear the statutory fees and thus receive a fee reduction of 80 percent.

b) Funding

Access to funding was one of the key challenges encountered by several start-ups. Entrepreneurs fail to attract creditors due to lack of experience, stability or current cash flows. In fact, many creditors are compensated by the high-risk aspect of companies as a significant percentage of failure to take off.

Government has established a fund with an initial corpus of INR 2,500 crore and a total corpus of INR 10,000 crore over a 4-year period (i.e. INR 2,500 crore per year) to provide funding support. The Fund is in the nature of Fund of Funds, meaning it will not invest directly in Startups, but will participate in SEBI’s registered Venture Funds capital.

Well to conclude with the help of various government programs, it is very easy to register as a startup nowadays.  Nonetheless, you should concentrate on your key area while there are many supporting websites to help you get your startup recognition right from start to finish. 

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