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.
- The following are the procedures under the Startup India scheme to register a start-up.
- On applying all the documents in the web portal, you will get the recognition number for your business start-up.
- In order to support and encourage start-ups, the Indian Government has formulated a funding system.
- 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.
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,
- 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
- A recommendation letter by the incubator who is in relation to the project, funded by the Government of India. Or
- 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
- 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
- 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.
- 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
- Step 1: Incorporate your Business
- Step 2: Register with Startup India
- Step 3: Get DPIIT Recognition
- Step 4: Recognition Application
- Step 5: Documents for Registration
- Step 6: Recognition Number
- Step 7: Other Areas
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
- Make sure you have registered your start-up as an LLP ( Limited Liability Partnership) or a Private Limited
- 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
- Make sure your start-up turnover per year is within 25 crores.
- 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.
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.
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
The eligibility for startup India registration is registered as a limited liability partnership, a partnership firm, or a private limited company. has not exceeded Rs. 100 crores in yearly revenue in any of the fiscal years since incorporation or registration.
A sole proprietorship or a public limited corporation is cannot eligible to register under the Startup India scheme. An LLP, being a private limited company is eligible to be recognized as a 'startup'.
Yes. One-person businesses are qualified for Startup India benefits.
The Startup India registration fee will be charged at Rs. 7,499 (professional fees included). The whole registration procedure is completed in approximately 15-20 working days.
The LLP is the most viable corporate entity for start-ups because it combines the advantages of a private limited company's limited liability with the flexibility of a partnership firm.
Small businesses in India can operate without registering, but registering the company is recommended to acquire certain benefits and ensure legal compliance.
A startup may file for tax exemption under section 80 IAC of the Income Tax Act after receiving recognition. After receiving approval for tax exemption, a startup may take advantage of a tax holiday for three straight fiscal years during the first ten years following incorporation.
According to the Startup India Action Plan, a "Startup" is a distinct legal entity that must be registered with the Indian government (not earlier than five years) and whose annual turnover cannot exceed INR 25 crores in any fiscal year.
All businesses with pre-GST tax filings must comply with the GST for startups in India.
With the introduction of the GST Composition Scheme, an optional program, the new tax system will allow startups and small businesses with yearly sales of up to Rs. 1 crore to pay less in taxes.