Numerous startups have mushroomed in India, and they are presently booming. The government is also helping and encouraging Indian entrepreneurs to establish startups. Startups are a superb way to boost the economy and generate employment for the country’s youth. To assist in the endeavour, the Indian government launched a scheme in 2016 named the Startup India Scheme, with the primary objective being startup promotion. DPIIT, the Department for Industrial Policy and Promotion, administers the scheme. Glance through to learn about the registration procedure for startups in India.
Startups enjoy benefits such as tax exemptions, simplified compliance, and funding, fostering innovation, economic growth, and job creation. Qualified startups (below 10 years old and having turnover under Rs 100 crore) get cost rebates on fast-tracked patent processing, IP filings, and tender access without previous experience. The Seed Fund Scheme and Fund of Funds (Monetary Support), with networking and mentorship aid in growth.
What is the Startup India Initiative?
The Startup India Scheme is one of the flagship initiatives launched by the Indian government on Jan 16, 2016, to make India look and function like a hub for idea generation and innovation. The scheme’s mission is to transform India from a country of job seekers to one of job generators. Operated by the Startup India Crew under the Department for Promotion of Industry and Internal Trade (DPIIT), it provides startups with favourable regulations, mentorship, and financial support to remove barriers and speed up growth.
Eligibility Criteria for Startup India Registration
To register a startup within India, qualify for DPIIT registration and obtain benefits from Startup India, a startup must satisfy the specified criteria:
- Age of the Startup: The startup should be at least 10 years old when it launches. Nonetheless, startups in the biotechnology segment are permitted up to 15 years.
- Business Structure: The startup must form a limited liability partnership (LLP), a private limited company, or a partnership firm.
- Annual Revenue: The startup’s yearly turnover must not surpass INR 100 Crores in any financial year since its inauguration.
- DPIIT Recognition: The startup must obtain a Startup India certificate from the Department for Promotion of Industry and Internal Trade (DPIIT).
- Innovative Approach: The startup must strive to innovate, deploy, develop, or commercialize the latest products, services, or processes driven by intellectual property or technology.
- Job Generation: The startup should either promote job creation or possess the potential to do so henceforth, allying with the Startup India Scheme’s goal to trigger employment within the nation.
- Legal Compliance: The startup must conform to all appropriate legal requirements, such as the Income Tax Act, Goods and Services Tax Act, and Companies Act. Moreover, it must keep a bank account in the business’s name and furnish these particulars during DPIIT registration.
Your company should not have been shaped by reconstructing or splitting up an already present business.
Online Process for Startup India Registration
Step 1: Include Your Business
The initial step is to integrate your business as a One Person Company (OPC), Limited Liability Partnership (LLP), Partnership firm, or Private Limited Company. It involves Business registration, like filing an application for registration and getting a Certificate Of Incorporation or Partnership registration.
Step 2: Enroll in Startup India
Once you have incorporated your entity, the next step is to enrol as a startup. It is very simple and can happen online, too. To start, visit the Startup India portal and select the ‘Register’ button. Furnish your name, mobile number, and email ID, and generate a password, then select ‘Register’. Then, key in the OTP (One-Time Password) that comes to your email and additional details will be presented, including the name, type of user, and startup stage. Choose the ‘Submit’ button to generate your Startup India profile. By finishing this Registration, your business will be identified as a startup within the Startup India scheme, rendering it eligible for different benefits and support.
Step 3: Get DPIIT Recognition
After building the Startup India website profile, the following vital step is to get recognition from the DPIIT. This recognition provides startups entry to diverse benefits, such as moderation in public procurement criteria, high-grade intellectual property services, convenient winding up of the company, self-verification for environmental and labour laws, access to Fund of Funds, and tax immunity for three consecutive years, like tax privilege on investments above commercial value. To apply for DPIIT Recognition, sign in with your subscribed profile credentials on the Startup India portal and select the ‘Apply for DPIIT Recognition’ alternative under the ‘Recognition’ tab. On the next page, select ‘Apply as Partnership Firm’ or ‘Apply as Company or LLP.’ If you click ‘Apply for Company or LLP,’ you will be rerouted to the National Single Window System (NSWS) portal. LLPs and/or Companies must be registered on the NSWS portal, and while registering, include the “Registration as a Startup” form to get in line with the DPIIT recognition process. This will officially register your startup with the DPIIT, making it eligible to avail of the suite of support & incentives under the Startup India programme.
Step 4: Present the Documents for Registration
To conclude the registration process and receive DPIIT recognition for your startup, you are required to file the specified documents:
- Approval letter of the company’s approved representative, partnership firm, or LLP.
- Proof of funding, if present
- Registration/Incorporation Certificate of your startup
- Proof of concept, such as a pitch deck, website link, or a video (relevant for early traction/ validation/ scaling stage startups)
- Record of certificates of recognition or awards, if present
- Trademark and patent details, if available
- PAN (Permanent Account Number).
Step 5: Self-Verification of Eligibility Conditions
Self-verify that your business fulfils the following conditions:
- Your business has been registered or incorporated in India for a maximum of 5 years.
- Your business is a LLP, Private Limited Company, or partnership firm.
- Your company is continuously innovating or enhancing existing systems.
- Your company’s turnover is up to Rs. 100 crore.
- Your business is founded on a new idea, not reconstructing or splitting up an existing business.
Step 6: Get Your Recognition Number
Upon registration, you will be given a recognition number immediately. The Certificate of Incorporation / Registration will be furnished only when the authority has verified all your uploaded documents. Be careful for the accuracy while uploading data, the fine can go up to half of your paid-up capital or at least Rs. 25,000 for wrong data. By satisfying the registration and eligibility criteria, your company can register for the Startup India scheme and get different benefits offered by the Government.
Wrapping Up
Kanakkupillai is the premier legal services platform for Startup India Registration, providing diverse Company Incorporation services such as Private Limited, LLP, Public Limited, Partnership, OPC, and Indian Subsidiary. Our extensive assistance helps you fulfil compliance requirements with economical fees and fashion the way for your startup’s growth and success.
