Startup Registration with Startup India
In recent years, India has witnessed a remarkable surge in the startup ecosystem. The government has proactively fostered this growth by extending support to young entrepreneurs through the Startup India initiative. This initiative recognizes and promotes startups and attracts innovative minds to contribute to the nation’s economic development. This article delves into the essential steps for registering your startup with Startup India and the benefits this recognition offers to budding entrepreneurs.
The Indian Government’s Push for Startups
Under the visionary leadership of Prime Minister Narendra Modi, the Indian government has championed the cause of startups through the Startup India initiative. The primary goal of this initiative is to invigorate the Indian economy by nurturing innovation and entrepreneurship. To begin your journey as a recognized startup, follow these vital steps:
Step 1: Incorporate Your Business
The first critical step in establishing your startup is to incorporate your business. You can choose from various business structures, such as a Private Limited Company, a Partnership firm, or a Limited Liability Partnership (LLP). This involves following the typical registration procedures, including submitting the registration application and obtaining the Certificate of Incorporation/Partnership registration.
For Private Limited Companies and LLPs, you must file the registration application with your region’s Registrar of Companies (ROC). For Partnership Firms, file the application for registration with the Registrar of Firms in your area. Ensure you submit all the necessary documents, fees, and registration applications.
Step 2: Register with Startup India
Once your business is incorporated, the next step is to register it with Startup India. The registration process is straightforward and can be completed online. Visit the Startup India website and click on the ‘Register’ button. Provide your name, email ID, mobile number, and password, and click ‘Register.’ Verify your registration by entering the OTP sent to your email and furnished additional details, such as the type of user, name, and stage of your startup. After this, your Startup India profile is created.
With your profile on the website, you gain access to many resources. This includes the ability to apply for acceleration and incubator/mentorship programs, access to funding options, government schemes, and market access.
Step 3: Get DPIIT Recognition
After creating your profile on the Startup India website, the next crucial step is to obtain recognition from the Department for Promotion of Industry and Internal Trade (DPIIT). This recognition opens the doors to various benefits, including access to high-quality intellectual property services, relaxation in public procurement norms, self-certification under labour and environment laws, tax exemptions, and more.
To obtain DPIIT Recognition, log in with your registered profile on the Startup India website and click on ‘Apply for DPIIT Recognition’ under the ‘Recognition’ tab. Follow the process on the National Single Window System (NSWS) website, where you must complete the ‘Startup Recognition Form’ with various details about your startup.
Step 4: Recognition Application
In the ‘Startup Recognition Form,’ you must provide information about your entity, including its full address, authorized representatives, directors/partners, startup activities, and self-certification. Review the terms and conditions and submit the form.
Step 5: Documents for Registration
As part of the recognition application, you will need to submit the following documents:
- Incorporation/Registration Certificate of your startup
- Proof of funding (if any)
- Authorization letter of the authorized representative
- Proof of concept (e.g., pitch deck, website link, video)
- Patent and trademark details (if any)
- List of awards or certificates of recognition (if any)
- PAN Number
Step 6: Recognition Number
After applying, you will receive a recognition number for your startup. The certificate of recognition is usually issued within two days after submitting the required documents online.
Step 7: Other Areas
Besides the aforementioned steps, Startup India provides additional support in key areas:
- Patents, Design and Trademark Registration: If your startup requires patents or trademarks, you can easily approach government-approved facilitators and benefit from an 80% reduction in fees.
- Funding: To overcome one of the major challenges faced by startups, the Indian government has introduced the Startup India Seed Fund Scheme (SISFS) to provide financial assistance.
- Self-Certification Under Employment and Labor Laws: Startups can self-certify their compliance under labour and environment laws, reducing regulatory burdens and allowing them to focus on their core business. This self-certification can last for 3 to 5 years from the date of incorporation.
- Tax Exemption: Startups are eligible for a three-year income tax exemption, but certification by the Inter-Ministerial Board (IMB) is necessary. This benefit is available to startups incorporated on or after April 1, 2016.
Key Features of the Fund of Funds
The Fund of Funds, managed by the Small Industries Development Bank of India (SIDBI) and co-invested by the Life Insurance Corporation (LIC), contributes up to 50% of SEBI registered Venture Funds. This support extends across various sectors, such as manufacturing, agriculture, health, and education.
Conclusion
Startups are a driving force for economic growth, and the Indian government’s Startup India initiative offers essential support for budding entrepreneurs. By following the registration steps outlined in this article, your startup can gain recognition, access valuable resources, and enjoy the many benefits provided by the government. Whether it’s tax exemptions, financial assistance, or intellectual property services, Startup India is a powerful platform for nurturing innovation and fostering entrepreneurship in the country. So, embark on your entrepreneurial journey and register your startup with Startup India to unlock the full potential of your innovative ideas.
Frequently Asked Questions on Startup Registration India
1. Who can register with Startup India?
Private Limited Companies, Partnership Firms, and Limited Liability Partnerships with an annual turnover not exceeding Rs. 100 crores and existence within ten years of incorporation can register.
2. What are the benefits of registering with Startup India?
Benefits include self-certification under labour and environment laws, three-year tax exemption, intellectual property services, and access to resources for protecting and commercializing intellectual property.
3. What business structure is ideal for a startup?
Private Limited Companies and LLPs are popular choices. Investors recognize Private Limited Companies, but they have stricter compliance requirements. LLPs have lower incorporation costs and relaxed compliance rules.
4. How can I attract investors to my startup?
Focus on building a stellar product with a scalable model, generate visibility, and proactively seek investors. Registering your startup with Startup India can make it more attractive to potential investors.
5. Can foreign companies register with Startup India?
Currently, the registration process is for entities with offices in India. However, the government plans to open registration to the global ecosystem.
6. What’s the difference between an accelerator and an incubator?
Incubators assist entrepreneurs in developing their businesses, especially in the initial stages. Accelerators support early-stage, growth-driven companies by providing mentorship and financial assistance over a set timeframe.
7. How long is a company recognized as a startup?
A startup remains recognized until it completes ten years from the date of incorporation/registration or exceeds an annual turnover of Rs. 100 crores.
8. Can an existing entity register as a “Startup” on the Startup India Portal?
Yes, an existing entity can register as a startup, provided it meets the prescribed criteria.
9. How do I know my registration is complete?
Upon successful recognition, you will receive a system-generated certificate of recognition, which you can download from the Startup India portal.
10. Does a startup need to be registered in India?
Yes, to avail of startup benefits, your startup must have at least one registered office in India.
