Startup India Registration – Eligibility, Documents Required, Procedure

How to Register a Startup in India?

A start-up is a business usually established by one person, two, or even a group of people. The major role of the start-up is that it should offer a new service or product that is not being offered anywhere else or provide the service in a unique way to the other existing organizations in the same domain. Since India is the third-largest country that has and getting more startups every year, here we have given the startup registration process, eligibility, and procedures to fulfill the dreams of your business start-ups on a hustle freeway.

Startup India Scheme

Startup India is a scheme announced by the Government of India in 2016 to support and motivate innovative start-ups in India. Via this scheme govt provides a wide range of options to youngsters to begin a business & the country’s economic growth also gets boosted. The following are the procedures under the Startup India scheme to register a start-up.

Eligibility Criteria for Startup Registration

• Should have incorporated as a Private Limited Company under the Companies Act, 2013 or Should possess a Limited Liability Partnership certificate under the  LLP Act of 2008.
• Yearly turnover should not exceed 25 crores, as mentioned in the Company Act 2013.
• Start-ups should be working on innovations and the commercialization of new products or services. 
• The start-up should not be older than 5 years.
• Should have got approval from the DIPP (Department of Industrial Policy and Promotion).
• The start-up must have got a patron guarantee from the IPTO ( Indian Patent and Trademark Office).
• Must possess a recommendation letter from an incubation. 

Documents Required for Startup Registration 

Here is the list of complete documents required for Startup India Registration

• Complete profile verification information for the director.
• PAN Card Number.
• Written evidence about your main website, affiliates, or presentation deck. required for speaking engagements, early momentum, or stage startups.
• Certificate of Incorporation or Registration for a startup.
• Information on patents and trademarks.
• Articles of Association or Incorporation with a Trademark
• Non-Disclosure Agreement (NDA)
• Contracts with Employees and Offer Letters
• Bylaws Shareholder’s Agreement
• Contracts for the Assignment of Intellectual Property
• Agreement Between Founders
• Plan of Business/Pitch Deck

Support / Recommendation Letter

The letter of support is a must document for registering as a start-up. The list of documents that can be used as a support letter is as follows, 

1. An incubator from an established PG college in college should provide a letter stating the original innovative concepts of your business; a format provided by the Department of Industrial Policy and Promotion ( DIPP).  Or
2. A recommendation letter by the incubator who is in relation to the project, funded by the Government of India.   Or
3. One of the recognized incubators from the Government of India must provide a support letter regarding your distinct business start-up in the format specified by DIPP.  Or
4. Any Private Equity Fund or accelerator or Incubation Fund which does not possess less than 20% equity, and is registered to SEBI,  should emphasis the innovative nature of the start-up in the prescribed format. Or
5. A funding letter from either the Central Government of India or the State Government of India to promote innovation as a part of specified schemes.
6. You are getting a promotional letter from a patent filed or a person who has published journals (Indian Patent Office) in the domain correlating to your start-up.

Steps to Register Your Startup With Startup India

1) Assimilate The Business

Initially, you must incorporate the business as either a Private Limited Company or an LLP. For doing so, you should go after the general business registration processes like getting the pvt ltd registration certificate or LLP, and PAN.

2) Register For Startup India Scheme

The next step is registering the business as a start-up in the Start-up India Scheme. This is one of the easiest processes that you can complete sitting at your home. For doing so,  Just log into the Start-up India Website, fill out the form with mandatory details and documents, and submit. 

3) Choose Tax Benefits

In general, every Start-up is income tax exempted for 3 years. Yet, to avail of this tax benefit, the start-up should have been certified by the IMB ( Inter-Ministerial Board). In addition to this, the Central Government offers this tax benefit even without the IMB certificate; if your start-up is recognized by DIPP (Department for Promotion of Industry and Internal Trade). 

4) Self Certification

1. Make sure you have registered your start-up as an LLP ( Limited Liability Partnership) or a Private Limited
2. Your business start-up should have been registered in India; Not 5 years before. Your business should not be formed by splitting up / reconstructing an existing business
3. Make sure your start-up turnover per year is within 25 crores.
4.  Your start-up should bring innovation in the domain in which the business is engaged or at least should improve the existing technologies and provide a better product or service.

5) Recognition Number

On applying all the documents in the web portal, you will get the recognition number for your business start-up. But the recognition certificate will be issued only after the successful verification of every mandatory document. 
One of the things to be considered while uploading these documents is that they should be liable if on verification found to be forged or faked, then you are subjected to pay a good amount of 50 % capital of the capital start-up with a minimum fine amount of Rs. 25,000.

6) Additional Procedures

• Patent / Trademark

To get a Patent or a Trademark for your ideas or innovation, you are subjected to approach any facilitators issued by the Government of India. Here, you need to pay only the statutory fees.

• Funds

The key challenge faced by many startups is to obtain funding. To support and encourage start-ups, the Indian Government has formulated a funding system with a beginning corpus value of 2,500 crores ₹ to 10,000 crores ₹ for 4 years, which is roughly 2500 crore ₹ a year. This fund is provided in the nature named Fund of Funds, that is, the government never directly invests in your start-up, but will invest in the capital value of SEBI venture funds.

Startup India Registration Online Procedure

1) First, log in to the Startup India Portal (https://www.startupindia.gov.in/).

2) Enter your legal entity

3) Enter the registration or incorporation number.

4) Enter the date of incorporation or registration.

5) Enter the PAN Number.

6) Enter your location, state, and PIN code.

7) Enter the Authorized Representative’s information.

8) Enter the Directors’ and Partners’ Information.

9) Upload the required documents and your self-certification in the appropriate sequence.

10) Submit the company’s Certificate of Incorporation/Registration.

Conclusion

The Indian government is currently very supportive of startups! It is the main reason why more and more Indians are starting businesses every day. After all, what could be better than knowing that someone will catch us if we fall? India is the third-largest nation in terms of entrepreneurial spirit for this primary reason.

Contact Kanakkupillai, the leading startup company registration service provider in India. Our team of experts can assist you with the entire private limited company registration process, from obtaining the necessary documents to applying with the Registrar of Companies. Contact us now and get your startup company registered hassle-free!

FAQs on Startup India

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