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Startup India Registration

What is Startup India ?

Govt. of India in 2016 came up with the Startup India Scheme Initiative with an objective of promotion of startups, generation of employment and wealth creation. It was started with an ambition to create a robust startup ecosystem and transforming India into a country of job creators. Startup India programs are managed by the Department of Industrial Policy and Promotion (DPIIT). The Govt. has provided a fund of around Rs. 2500 crore for startups as well as a credit guarantee fund of Rs. 500 crore rupees. The major objectives of Startup India Schemes are:

• To build a strong ecosystem for promoting innovation and startup in the country.
• To encourage sustainable economic growth and create large scale employment opportunities.
• To reduce the regulatory burdens of startups and allow them to focus on their core business and keep compliance cost low.

Who can register with Startup India

Though only newly formed entities are eligible for startup India registration, still there are some eligibility criteria to be considered before going for a startup India Registration.

• The incorporated entity must be a Private Limited Company, Limited liability Partnership or a Registered Partnership Firm.
• The entities not older than 10 years from the date of incorporation/registration (not before 1st April 2016) are only eligible for Startup India Registration.
• The total turnover of the company should be not exceeding 100 crores rupees since incorporation/registration.
• The company is having a business model with high potential of employment creation.
• The company is having a business model with high potential of wealth creation.
• The company is offering innovative products or services.

However, an entity formed by splitting up or reconstruction of a business already in existence shall not be considered as startups.

Benefits that made Startup India Registration a unique one

Through Startup India Recognition, an entity can avail a bunch of benefits through different schemes and rebates. Some of the major benefits are:

• Startup India recognized entities are eligible for 3 consecutive years tax exemption fron Income Tax department under 80IAC.
• Eligible startups can avail funding for their business under FOF Scheme (Funds of Funds for startup scheme)
• Exemption from prior experience or turnover criteria and security deposit for filing tenders and listing startup products on Government e-marketplace.
• Startups are allowed to self-certify compliance for 6 labour laws through a simple online procedure.
• Fast tracking benefits for startups for patent applications. Upfront 50% rebate on trademark fees and 80% rebate on patent filing fees.
• Recognized startups can avail loans from non-resident Indians through simple RBI compliance mechanism.
• Eligible startups can avail different schemes and benefits from state governments specially announced for DPIIT recognized startups.
• DPIIT recognized Private Limited companies can take deposits from its members for a period of five years from the date of incorporation of the company.
• DPIIT also ensures easy winding up of company for eligible startups to encourage entrepreneurs to experiment with new and innovative ideas without facing complex exit processes.

Minimum Documentation for getting your DIPP Certificate

• Certificate of Incorporation or Partnership Registration Certificate
• Partnership/LLP or MoA for the company.
• PAN Card of the entity & Aadhar Card of Authorised Signatory
• Brief on how the company is working towards innovation, employment and wealth creation.

• Website details or Company Profile

• IT returns for last three financial years.

 

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