After the Startup India scheme of the Indian government, there has been a boon of startups in the Indian market. There are different types of startups, like food startups, agritech startups, tech startups etc. are growing in the market. All the startups have been given various benefits under the Startup India scheme of the government of India. This scheme is there so that startups can grow and help the Indian economy to grow.
Startups are helping directly or indirectly to the Indian government by providing employment and solving many social and economic issues in our country. Startup India registration is mandatory to get recognised as a startup in India. The procedure for startup registration in India is online, and one can do it hassle-free with the help of a professional. It is a multi-stage registration where all the information needs to be filled in appropriately without any mistakes. The procedure for startup registration in India can be done through the online portal of the government.
What are Startups?
Any type of private limited company registered partnership firm or limited liability partnership firm that is not older than ten years and working with an innovative idea is called a startup in India. The turnover of startups cannot be more than Rs. 100 crore. They are not formed due to the split of already existing entities. They must be original entities that are doing scalable business and that have possibilities of new opportunities in the market.
Such kinds of businesses are helping the government by providing solutions to many problems like unemployment. To get the benefits or advantages under the Startup India scheme of the government, it is mandatory for all startups to complete the procedure for startup registration in India.
Eligibility to Register as a Startup in India
To complete the procedure for startup registration, one must fall under the eligibility criteria. The eligibility criteria for startups in India are given below:
- There are various types of entities in India; to take startup registration, one must be incorporated or formed as a private limited company or a partnership firm under the partnership act or an LLP.
- The age of the company matters a lot while taking startup registration in India. A company must not be older than ten years. Companies’ period of existence or operation should not be more than 10 years from the date of incorporation of the company. If a company has been working or in operation for more than 10 years then it is not eligible to complete the procedure for startup registration in India.
- The next important thing to be eligible to take startup registration in India is the annual turnover of the company. The annual turnover must not exceed Rs. 100 crore of the company for any of the financial years since its incorporation.
- The Entity must be an original and a new entity. It must not be formed through joint ventures, mergers, acquisitions, splitting of two companies, etc.
- The entity to be registered as a startup must be an innovative and scalable Company. It must have a high potential to create wealth and employment in the Indian economy.
Procedure for Startup Registration in India
The procedure for startup registration in India is a multi-stage process. To register any kind of startup in India, one must complete all the stages. Without completing the process, one cannot get a startup India registration certificate. If any startup is not recognised under Startup India registration, it cannot take the benefits of a startup given by the government.
Hence, to be a legally recognised startup in India, one must complete the procedure for startup registration in India and get certified by the Department for Promotion of Industry and Internal Trade, which is commonly known as DPIIT. Given below is the step-by-step guide to get startup registration in India:
Incorporate Your Business
The first step to registering your startup with Startup India is to choose an entity and incorporate it. To get the registration of Startup India you have to incorporate a private limited company or a partnership firm under the partnership act or an LLP that is a Limited Liability Partnership firm. Private limited companies and limited liability partnerships under the Companies Act will be incorporated through the Registrar of Companies. Both have online procedures.
On the other hand, partnership firms have to be registered through the normal registration procedure. A partnership deed will be drafted, and it has to be registered according to the jurisdiction of the business address place.
Collect All the Documents
To register as a startup in India, one must complete all the documentation. Without having the proper documents, one cannot register any kind of entity as a startup in India. Hence, to register your startup as a legally recognised entity, one must collect the documents given below:
- Incorporation certificate in case of a private limited company and limited liability partnership firm.
- Partnership deed in case of partnership firm.
- All the KYC documents like Aadhaar Card, PAN Card of the directors or partners
- One passport-size photograph of all the partners or directors
- Business address proof can be a telephone bill or gas bill or electricity bill, etc.
- Proof of funding must be there if any.
- Authority letter of the authorized signatory of the private limited company or partnership firm under the partnership act or limited liability partnership firm
- Website link, if any
- Entity’s Intellectual property details, if any
- List of awards or certificates of recognition of the entity
- PAN Card of the entity
Register with Startup India
To complete the procedure for startup registration, follow the steps given below :
- Visit the Startup India official website
- On the right side of the home page, an option of “register” will be given
- Click on the register option
- Now, create an account by filling in or providing the required information
- Login through the login and password you have created while creating an account
- After login fill in all the information regarding the startup and then click on the next button
- Fill the contact information and again click on the next button
- After the above step, select the category of the startup and fill in all the related details
- In the end, select the interest of the startup and save the information
Get DPIIT Recognition
After completing the above-mentioned procedure of startup India registration, now it’s time to get DPIIT which is Department for Promotion of Industry and Internal Trade recognition. To get DPIIT recognition, follow the steps given below:
- Visit the official Startup India website
- Login through the already created login credentials
- On the left side of the screen, you will find an option of “recognition.”
- Click on the option of “recognition.”
- A tab will be open with various options, out of which choose “Apply for DPIIT recognition.”
- Fill out the startup recognition form with all the requisite details and submit the form
- Now, the department will examine the form, and if satisfied, your Startup India registration certificate will be issued.
Benefits of Startup India Registration in India
There are many benefits of Startup India registration, but to get those benefits, one has to register its startup with the Startup India platform. Some of the benefits of Startup India registration are given below:
- Startups who have completed the procedure to start up registration and get the certificate of recognition are allowed to self-certify with the compliance of 6 labor laws and three environment laws through a simple online procedure only.
- Fast-tracking of the patent application will be available to recognised startups.
- While getting any IPR protection, facilitators will be provided to assist in the filing of intellectual property applications.
- All the facilitation fees of the application for intellectual property protection will be paid by the government.
- While filing the application for a patent, one can get up to an 80% rebate
- Tax exemption under Section 56 and Section 80 IAC of the Income Tax Act will be available
- All the startups that got recognised by the DPIIT will have an easy wind-up process
Conclusion
In India, to complete the procedure for startup registration under the Startup India scheme, your business must be less than ten years old, with an annual turnover below Rs 100 crore. You can choose to be a private limited company, partnership firm, or LLP. The registration process involves incorporating your business, collecting necessary documents, and registering on the Startup India platform.
After that, you can apply for recognition or approval from DPIIT which is the Department for Promotion of Industry and Internal Trade (DPIIT). Once recognised, your startup can benefit from tax exemptions, fast-tracked patent applications, assistance with intellectual property protection, simplified compliance, and an easier wind-up process, making it an attractive or brilliant option for aspiring entrepreneurs in India.
