A startup is basically a newly formed small business started by a group of people or one individual. The main difference between a startup and other businesses is that it introduces new services or products that are not sold by existing businesses in the same manner. So, innovation is the key to success for a startup. The company either offers customers a completely new service or product or redevelops an already available product in the market. Today we’ll discuss in detail about startup India registration.
Let’s become a part of India’s biggest digital platform through startup India registration.
A brief history of Startup India:
At present, startups are emerging in large numbers in India. They are also becoming excessively popular. To strengthen the Indian economy and attract competent entrepreneurs, The Central Government of India, under the guidance of Narendra Modi, the Prime Minister of India, has made an incredible decision. It has created ‘Startup India’, a flagship initiative to encourage a startup culture in India and build an inclusive and robust ecosystem for entrepreneurship and innovation.
Guidelines for registering your startup:
Follow these simple steps for startup India registration online:
- Incorporate the business- The first important step is to incorporate the business of yours as a Partnership Firm that is a Private Limited Company or a Limited Liability Partnership. You have to go through the usual procedures like getting the Incorporation Certificate and PAN required for your business’s startup India registration.
- Register- The second step is to ensure that the business is registered as one of the startups. The whole process is online and simple. All you require to complete is visit the official website of Startup India and fill up the correct details in the form.
- Upload documents- Uploading documents is the third step. So, you have to ensure that you have all the documents to avoid the last-minute rush. You’ll also get to know about which documents are essential for startup India registration.
- Opt for tax benefits- All startups in India are exempted for the first three years from income tax. But, for availing these benefits, you need certification from the Inter-Ministerial Board, abbreviated as IMB. But, startups acknowledged by DIPP, the Indian Government can directly claim IPR benefits without worrying about IMB certification.
- It would be best if you self-certify that you fulfill certain conditions-
- You have to register your company or business as a Partnership Firm, a Limited Liability Partnership, or a Private Limited Company.
- Your new business must be based on India, registered not before a period of 5 years.
- Turnover has to be under 25 crores.
- Your startup business must not be the outcome of a reconstruction or splitting up of some existing business.
- You have to be innovative.
- Get your recognition number- As soon as you submit the online application for startup India registration, you will get a unique recognition number for your business. The recognition certificate will only be provided to you after a thorough examination of all documents submitted by you. However, you should be careful while you upload your documents. If the concerned authorities find out during the time of investigation that you have forgotten to upload a particular document or one of your documents is forged, there’ll be consequences. You may have to pay a fine equivalent to 50 percent of the capital you have paid for the startup.
- Other areas- Some other areas demand your attention during the startup India registration process.
- Trademarks, patents, and design registration- Once you complete the startup India registration, there are several Government-issued facilitators to assist you if you need a business trademark or a patent for innovation. You’ll get an 80 percent reduction in the original fees by paying the statutory fees only.
- Funding- One of the biggest challenges that startups face is managing finances due to lack of experience and investors and lack of customers. After startup India registration, the Govt. will give you funding support.
Relevant documents you have to upload:
These are the documents you must upload for startup India registration:
- Registration or Incorporation Certificate – Along with your form, you have to upload your independent business/company’s incorporation certificate. In the case of a shared partnership, the Registration Certificate will be sufficient.
- Business description (in brief) – You also have to describe your business plans and services or products in short for startup India registration. A recommendation letter – Any of the recommendation certificates mentioned below will be accepted:
- Recommendation from any Incubator established in any Indian post-graduate college, in the correct format (the format specified by DIPP- Department of Industrial Policy and Promotion).
- A recommendation letter clarifying the innovative nature of the business from any Incubator approved by the Indian Government
- A recommendation letter by any Government-funded incubator
- A funding letter by any State Government or the Central Government of India as part of a particular scheme for promoting innovativeness
- A funding letter with equity of at least 20 percent, by an Incubation Fund/ Private Equity Fund/Angel Network/Angel Fund that endorses innovative businesses.
- A patent published by the Indian Patent Office in the Journal mentioned the areas affiliated with the promoted business’s nature.
(Note: Upload all documents only in PDF format)
Who are eligible for registering with startup India?
- Any entity integrated as a Partnership Firm, a Limited Liability Partnership, or a Private Limited Company is eligible for startup India registration. The yearly turnover of one such business should not be more than 25 crores.
- The company should be in existence for ten years after the registration/ incorporation.
- Companies applying for startup India registration are expected to work towards improvement and innovation of processes, services, or products.
Conclusion: We hope that you have received all the information required for startup India registration. So, what are you waiting for? Follow the steps mentioned above on startup India registration and fulfill your dream of having an independent business.