Startup India Registration
startup India registration, People are very interested in starting their own businesses, but funding, confusion and ignorance have become major barriers to entrepreneurship.
The government is offering plenty of schemes, subsidies and exemptions to encourage young entrepreneurs as it gives economic growth to the nation and a good reputation among other countries.
However, ‘Start-up India’ is one such scheme provided by the Indian Government. Through this article, we will learn about the process of startup india registration and benefits of the Startup India scheme.
What is a startup India registration?
Generally speaking, in colloquial language, every new entrepreneur will mention that they are a start-up, but can we call every new organisation a start-up? The answer is no.
“Only an organisation with innovative business ideas, products or services can be called a start-up.” Typically, a startup is a person or group of friends who set up a company and develop a product by investing a small amount of money.
What is the Startup India Scheme?
The Government of India launched a new programme called Startup India in 2016. The main motto of the scheme is to create a strong economic and supportive environment to help the growth of innovative startups in India.
Startup India has 19 beneficial action points such as incubation centres, intellectual property filing schemes, tax exemptions and many more advantages.
The main motive of the Startup India scheme is to “encourage entrepreneurs”. Through this scheme, the Indian government transforms job seekers into job providers.
Many investors show interest in investing in start-ups, while they also contribute their knowledge and involvement in startup companies, therefore, it takes start-up companies to the next level.
Top 5 Benefits of Startup India Scheme
1. Tax Exemption for first 3 years:
Start-ups will be exempt from income tax for the first three years. However, this benefit is only available after certification by the Inter-Ministerial Board (IMB for short).
Intellectual property rights. Start-up companies can enjoy benefits from subsidies when applying for trademark and copyright registration. They will enjoy an 80% reduction in the cost of filing patents or Trademark Applications.
3. Incubator System:
Incubator cells help start-ups to kick start their businesses. Incubators offer many benefits to the owners of start-ups. Their offices and production space are available at below-market rates, their staff provide advice and much-needed expertise in developing business and marketing plans, and they help finance fledgling businesses.
4. Government Tenders:
Government projects are usually large and have high monetary incentives. However, it can be quite difficult to obtain one. But startup are given priority while giving orders.
The Government of India has earmarked a reserve fund of Rs 10,000 crores. The fund is managed by the Small Industries Development Bank of India and aims to provide equity funding support for the development and growth of innovation-driven businesses.
Startup India Scheme Eligibility
- It should be a Private Limited company or Limited Liability Partnership
- The company formed should be a new one and it should not be more than 10 years old
- To qualify under the scheme, the annual turnover of the company should not exceed Rs 25 crore.
- All the companies which wish to join the Startup India Scheme should get approved by the Department of Industrial Policy and Promotion (DIPP).
- The company should be based on the innovation or the development of a new innovative product or service.
- Proprietorship firm
- Unregistered Partnership firm
- Turnover more than 25 crores
- Company which is older than 10 years
Document needed for register under the startup India scheme
- Company incorporation certificate
- Brief description of the organisation
- Details about the core team
- Details about the IPR
What is the Process to register under startup India
In order to initiate the Startup Indian Registration process, there are a few preparations and procedures. We will explain this procedure to you in this section.
Step 1: Company Incorporation:
Before going for the startup India Scheme, you must first register a Private Limited or Limited Liability Partnership. Once the company is registered, you must obtain the legal compliances such as a PAN card in the name of the company, GST and other basic compliances to run the business.
Step 2: Submission of documents:
Once the company registration is complete, you can now register your company as a startup in the government’s Startup India scheme. The forms can be found on the government portal and you will need to create a login and then just fill in the form. In addition, submit the necessary documents and your business plan.
Step 3: Recognition Number:
Once you have created your login, you will now need to obtain approval by clicking the Submit button on the “Startup Recognition Form”.
Validity of the Startup India Scheme
A Startup company, on completion of ten years from the date of registration, or if the turnover of the organisation exceeds Hundred Crores then the organisation ceases the privilege of Startup.
Now you would have understood more about this topic. Thanks for reading the entire Article. Keep sharing this article to your friends who are in business or about to start their own Business.