Introduction
In India, A startup is a newly established business usually a small business that is started by one person or a group of individuals. What differentiates it from other new businesses is that a start-up offers a new product or service which is not being given elsewhere in the same way. It is the innovation and business either develops a new product or service or redevelops a current product or service present into something new better.
Start-up India
In India, Start-ups are becoming very popular. The public power of India under the drive of PM Narendra Modi has started and promoted the Start-up India initiative to recognize and promote the start up for developing the Indian economy and attracting talented entrepreneurs. Start-up India Registration is intended at transforming India into a job provider rather than a job seeker. Start-up India can recognize only an entity that is registered as a Partnership firm or Limited Liability Partnership or Private Limited Company and only eligible entities or Partnership firms or companies can take registration under this scheme. This process can be done through the online start up India website.
Objective
The main objective of start up India is to reduce the regulatory burden on Start-ups and thereby permitting them to zero in on their centre business and keep consistency costs low.
Registration Process for start-up India
There are many steps for registration of start-up India which are given below: –
- Incorporate your business: – Firstly, you need to incorporate your business into a Private Limited Company or LLP, or Partnership Firm. You just follow the normal procedure which includes filing a form to get the registration.
- Register under Start-up India: – After that, you need to register the company or firm under the start-up India scheme of the Indian government. You fill in all the details in the form which is available on the website of Start-up India and then upload some documents as well.
- Documents you need to upload in a PDF format only: – you need a registration form along with the recommendation letter. You can get anyone’s recommendation letter which is given below:
- A recommendation letter from any post-graduate college in India or in a format that is approved by the DIPP. OR
- A recommendation letter from an incubator that the Government of India funds as a part of any specified scheme to promote innovation; OR
- A letter of funding not less than 20% in equity by an Incubation Fund, Private Equity Fund, Angel Fund, Accelerator, or Private Equity Fund which is registered with SEBI that countersign with the innovative nature of business; OR
- A recommendation later by the Central Government or any State Government of India; OR
- Registration or Incorporation Certificate.
- You need to upload the certificate of incorporation of your company or LLP or a registration certificate for a partnership company and provide a brief description of your business.
If you need tax exemption then mention it: –
Start-ups do not have to pay income tax for the first three years in India but avail of some benefits when the company must be certified by the Inter-Ministerial Board. This is where the company enrolled with DIPP gets unwinding as the enlistment is sufficient to get the advantages.
Self-certification of the following conditions
- Your company is a Private limited company or LLP or a partnership firm.
- In India, Your business must be incorporated or registered not before 5 years.
- Your company’s turnover must not be more than Rs.100Crore.
- Your business must be a fresh idea and not a breakdown or reconstruction of an existing business.
Get your recognition number
- For the registration of the application, you will get a recognition number with immediate effect. After the authority goes through all your uploaded documents when you get the certificate of registration or incorporation only.
- Now enroll your company into the Startup India scheme and reap all the benefits which are provided by the government.
Eligibility for Registration of Startup India
- Private Limited Company /LLP/Partnership Firm
- The company is offering Innovative products or service
- Registered for not more than 10 years
- Company is having a business model with a high potential of employment enervation OR
- Turnover does not exceed Rs. 100Crore
- The company is having a business model with a high potential for wealth creation
Documents required
There are some documents that are necessary for the registration of Start-up India that is given below:
- Certificate of Incorporation
- MOA & AOA
- List of Directors or Designated Partners
- Contact details of Directors/Partners
- Information related to Awards/certificates
- Subtleties are connected with measures of speculation and financial backers.
- Details of Intellectual Property Rights Registration
- Website Link/Mobile App Link
- Udyam Registration/MSME Registration
- Business Plan & Growth Plan
Advantages of Registration of Startup India
There are many advantages of registration of start-up India which are mentioned following;
Exemption from tax: Any entity registered under the start-up India Scheme can apply for income tax exemption under section 80IAC. An entity can get an exemption for 3 consecutive F.Y. out of 10 years from the date of incorporation subject to the following conditions:
- An entity should be a private limited company or LLP or partnership firm.
- It shall be incorporated between 1st April 2016 to 1st April 2021.
Self-Certification: start-ups can get self-certified for compliance under six labour laws and three environmental laws from the date of incorporation.
Rebate in Trademark and Patent filing fees: Start-ups registered under this scheme can get a rebate on the govt. fees for filing the trademark application. In the case of Patent application, an 80% rebate is available and you can get also the benefits of a fast-track patent application.
Fast exist: Start-up Registered under this scheme will be wound up on a fast track basis. According to the Insolvency and Bankruptcy Code, 2016 start-up can wound up with a simple debt structure within 90 days of applying for insolvency.
Conclusion
It concluded that Start-up India Registration is intended at transforming India into a job provider rather than a job seeker. Start-up India can recognize only an entity that is registered as a Partnership firm or Limited Liability Partnership or Private Limited Company and only eligible entities or Partnership firms or companies can take registration under this scheme. It is the innovation and business either develops a new product or service or redevelops a current product or service present into something new better.
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