Through the Startup India initiative, Government of India promotes entrepreneurship by mentoring, nurturing and facilitating startups throughout their life cycle. Since its launch in January 2016, the initiative has successfully given a head start to numerous aspiring entrepreneurs. With a 360 degree approach to enable startups, the initiative provides a comprehensive four-week free online learning program, has set up research parks, incubators and startup centers across the country.
Who can register?
- Any entity which is a Private Limited Company or Registered Partnership Firm or Limited Liability Partnership who has been registered since less than 7yrs and in the biotechnology sector the period shall be up to 10yrs.
- Any entity if its turnover for any of the financial years has not exceeded INR 25 crore.
- Any entity if it is working towards innovation, development, deployment or commercialization of new products, processes or services, or if it is a scalable business model with high potential of employment generation or wealth creation.
- The entity should not have been formed by splitting up or reconstruction of a business already in existence.
- A proprietorship or a public limited company is not eligible for registration. However, a one person company, being a private limited company is entitled to be recognized as a 'startup'.
Benefits-
- Self certification and compliance under 9 environmental and labor laws.
- Up to 80% rebate in filling patents.
- Improved Bankruptcy Code, to ensure a 90-day exit window.
- 10,000 crore startup funding pool.
- Tax exemptions on income tax for 3 years.
- Tax exemptions on capital gain and on investments above fair market value.
- Freedom from mystifying inspections for first 3 years of operation.
Procedure to register-
1. Incorporate your business: You must first incorporate your business as a Private Limited Company or a Partnership firm or a Limited Liability Partnership. You have to follow all the normal procedures for registration of any business like obtaining the certificate of Incorporation/Partnership registration, PAN, and other required compliances.
2. Register with Startup India: Then the business must be registered as a startup. The entire process is simple and online. All you need to do is log on to the Startup India website and fill up the form with details of your business and upload certain documents.
3. Documents to be uploaded (in PDF format only):
a) A letter of recommendation: A letter of recommendation must be submitted along with the registration form. Any of the following will be valid-
(i) A recommendation (regarding innovative nature of business) from an Incubator established in a post-graduate college in India in a format specified by the Department of Industrial Policy and Promotion (DIPP); OR
(ii) A letter of support by an incubator, which is funded (in relation to the project) by Government of India as part of any specified scheme to promote innovation; OR
(iii) A patent filed and published in the Journal by the Indian Patent Office in areas affiliated with the nature of the business being promoted.
b) Incorporation/Registration Certificate: You need to upload the certificate of incorporation of your company/LLP (Registration Certificate in case of partnership)
c) Description of your business in brief: A brief description of the innovative nature of your products/services.
4. Answer whether you would like to avail tax benefits: Startups are exempted from income tax for 3 years. But to avail these benefits, they must be certified by the Inter-Ministerial Board (IMB). Start-ups recognized by DIPP, Govt. of India can now directly avail IPR related benefits without requiring any additional certification from IMB.
5. Finally, you must self-certify that you satisfy the conditions:
6. Immediately get recognition number: On applying you will immediately get a recognition number for your startup. The certificate of recognition will be issued after the examination of all your documents. However, be careful while uploading the documents. If on subsequent verification, it is found to be obtained that the required document is not uploaded/wrong document uploaded or a forged document has been uploaded then you shall be liable to a fine of 50% of your paid-up capital of the startup with a minimum fine of Rs. 25,000.
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