Startup India Registration
Startup India Registration :
The Startup India Scheme is a Government of India effort aimed at stimulating the development and innovation of products and services and the creation of jobs throughout the country. One of the scheme's objectives has been to make it easier for startups to register in India by lowering regulatory burdens and allowing them to focus on their core business while reducing compliance costs and providing multiple benefits, In addition to the massive networking opportunities offered by the Government of India's bi-annual startup festivals held both domestically and internationally.
The Government has initiated a Startup India scheme to promote innovations for the growth of businesses. By forming a business entity under the StartUp India initiative, startups can take advantage of several incentives provided by the DIPP registration. This strategy aims to turn India into a job provider rather than a job seeker. A startup must also be involved in activities to improve or innovate existing products or services and create jobs or money. Only an entity that meets the Government's eligibility criteria can apply for registration under the scheme by submitting an online application form using a mobile application or through a portal set up by the Government.
Eligibility Criteria Under the Startup India Scheme are –
1.This scheme is available only for these three types of business entities, namely-
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Private limited company
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Limited liability partnership (LLP)
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Partnership Firm.
2. It has been fewer than 10 years since it was incorporated/registered.
3. Since its incorporation/registration, it has never generated revenue exceeding INR 100 crores in any financial year.
4. It must have a DIPP number.
5. If it is funded by incubation fund, angel fund, or private equity fund that is registered with (SEBI) Securities and Exchange Board
of India
6. It is working on product or process or service innovation, development, or improvement, or a scalable business model with a strong potential for job creation or wealth creation.
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Benefits of Startup India Scheme:
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Income Tax
Startups in India are now eligible for an income tax exemption for three years from the date of incorporation. The startup will be exempted from capital gains tax under Section 56 of the Income-tax Act after receiving recognition from the DPIIT (Department for Promotion of Industry & Internal Trade).
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Simple Registration
Due to the onerous regulations, startup registration in India is still exceedingly complex, with incorporation and registration deemed more burdensome than operating. Startup India Hub was launched as part of the scheme, providing networking opportunities with the Government and a problem-solving window.
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Faster Exit
Startups with a simple debt structure or those meeting the criteria outlined under this scheme can achieve a complete exit within 90 days.
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Rebate in Trademark and Patent Application fees
Startups registered under this scheme can claim a rebate on the government fees for filing a patent application up to 80% rebate and 50% on trademark applications. Entire fees of Facilitators for any number of Patents, Trademarks, or Designs a Startup may file shall be borne by the Government.
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Self Certification
Startups can self-certify the compliance under 6 Labour Laws and 3 Environmental Laws for five years from the date of incorporation.
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Government Tenders
Having minimum prior experience/turnover for filing the government tender by the companies registered under the StartUp India scheme has been relaxed. While filing government tenders, startups recognized under DIPP are exempted from submitting Earnest Money Deposit(EMD).
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Interaction platform for Startups
Startups recognized under DIPP can register on Government e-Marketplace as sellers and sell their products and services directly to Government Entities.
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Funds for Startups
The Startups can raise funds and capital through a funds initiative of Startup India.
Documents required: