A startup can be defined as an entity that promotes innovation and development. They are more likely in support of growth with newly developed business ideas that are generally different from the existing ones in the market.
Startups can utilise seed cash-flow to put resources into research and to foster their strategies. Statistical surveying decides the interest for an item or administration, while a complete strategy frames the organisation’s statement of purpose, vision, and objectives, as well as the board and promoting techniques. In this blog, we will see the procedure for registration under Startup India Scheme.
Understanding What is a Startup
Before going into the procedure for registration under Startup India Scheme, let us understand the meaning of a startup. A startup is an emerging business entity characterised by its commitment to fostering innovation. These entities distinguish themselves through their unique business propositions that set them apart from the conventional competition. Although most startups originate from novel and inventive business ideas, a significant proportion of them experience relatively short lifespans due to challenges stemming from limited resources.
Documents Required for Startup India Scheme Registration
There are certain documents that are necessary to be gathered before going into the procedure for registration under Startup India Scheme, which aims to provide support to budding entrepreneurs and promote the growth of startups in India. The documents Required for Startup India Scheme Registration are as given below:
1. Certificate of Incorporation of the Business Entity:
A legal document that proves the formation and registration of the business entity.
2. Copy of PAN Card:
A copy of the Permanent Account Number (PAN) card of the business entity.
3. Memorandum of Association (MoA) or Article of Association (AoA):
For Limited Liability Partnerships (LLPs) or partnership firms, the MoA or AoA outlining the company’s objectives and rules.
4. Details of Directors:
Name, contact details, and photographs of the directors associated with the startup.
5. Entity’s Social Profile or Website Link:
Information about the startup’s social media profiles or official website.
6. Intellectual Property Rights (IPR) Information:
Details regarding any Intellectual Property Rights owned by the startup, such as patents, trademarks, copyrights, etc.
7. Funding Details:
If the startup has received funding from investors, provide information about the funding sources and amounts. Because funding is a significant challenge for startups, often hindered by limited experience and resources, the Indian government has recognised this hurdle and has taken proactive steps to support startups financially.
8. Awards List or Recognition Certificates:
Any awards, honours, or certificates received by the startup as recognition for its achievements.
What is the Procedure for Registration Under Startup India Scheme
Given below is the detailed procedure for registration under the Startup India Scheme:
Step 1: Business Incorporation Process
Firstly, understanding the business incorporation as LLP, private company etc. is important to start the procedure for registration under Startup India Scheme. For this, submit an application for company registration via the Ministry of Corporate Affairs portal.
Step 2: Startup India Registration
Next in the procedure for Startup India registration under Startup India Scheme, if you’re planning to enrol your business in the Startup India initiative, follow these steps:
1. Visit the Startup India website.
2. Access the registration application provided on the platform.
3. Carefully review the form and provide accurate information.
4. Attach the required scanned documents as specified in the application.
Step 3: Document Upload Process
After completing the above step in the procedure for registration under the Startup India Scheme, certain recommendation letters and documents are required. Choose one of the following recommendation letter options:
- A recommendation letter in a format certified by the Department for Promotion of Industry and Internal Trade (DIPP) from an incubator.
- A recommendation letter from a government-oriented incubator.
- A letter issued by a government-backed incubator in DIPP format.
- A recommendation letter from an angel investor or SEBI-registered entity endorsing the innovative nature of your business.
- A letter from the State or Central Government.
- A patent filed and published in the Journal of the Indian Patent Office, related to the business’s promoted area.
Step 4: Tax Exemption Information
It is important to note while discussing the procedure for registration under Startup India Scheme that startups enjoy a tax-free period of three years in India. However, this benefit becomes accessible once the company is registered under the Inter-Ministerial Board (IMB).
Step 5: Self-Certification for Startup India Scheme
Thereafter, in the procedure for registration under Startup India Scheme, ensure the following criteria are met for self-certification under the Startup India Scheme:
1. The business should be registered as a Private Limited Company, Partnership firm, or LLP.
2. The company should be a legal entity established in India, not exceeding five years of existence.
3. Business turnover should not exceed Rs 100 crore.
4. The company should be promoting unique and innovative ideas.
5. It should focus solely on promoting novelty and should not negatively impact existing businesses in the market.
Step 6: Receipt of Recognition Number
Finally, after submitting the registration application, the portal will provide you with a recognition number. It’s essential to understand that the registration certificate won’t be instantly issued and it will be granted following a comprehensive review of the uploaded documents by the appropriate authority.
When uploading data, exercise prudence, as any inconsistencies could lead to penalties amounting to either Rs 25,000 or 50% of your paid-up capital.
Final Thoughts
The procedure for registration under the Startup India Scheme is a comprehensive roadmap designed to empower innovative ventures and accelerate their growth in the Indian business landscape. Startups, characterised by their pioneering ideas and distinctiveness from existing market players, find support through this initiative to navigate the challenges of funding and growth.
The outlined steps encompass the entire process – from business incorporation to receiving the recognition number. The self-certification criteria affirm the startup’s commitment to novelty, ensuring they complement the market rather than replicate existing businesses. Overall, the Startup India Scheme’s comprehensive procedure underscores the government’s dedication to nurturing a vibrant startup ecosystem, driving economic growth through innovation and entrepreneurship.
