Startup India Registration – An Overview
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The Government of India launched the Startup India Initiative in 2016, with the idea to encourage innovation, promote entrepreneurship, increase the job opportunities in india.
Under the Startup India Programme the new startups get a boost to achieve new heights. The scheme ensures to provide a strong support system, easy legal compliances and offers financial assistance and many more benefits.
What is a Startup?
A Startup is a relatively new business, usually started by one or more entrepreneurs. The main objective of a startup is to develop a unique product/service or reinvent the current product/service into something better.
Startup India Registration
In India, The Startup India Initiative is launched by the government of India to promote and support the rising entrepreneurs. This scheme gives benefits in various ways by providing Tax Exemption, Funding opportunities and global interface to the new startups, to avail these benefits it is necessary to get registered the new startups in the scheme.
Benefits of Startup India Registration
The various benefits of Startup India Registration or DPIIT Registration are as follows:
- Tax Exemption under 80IAC
Most Important benefit of registering under the Startup India scheme is the 3 year tax holiday.Startups that are recognized can enjoy tax exemption from Income tax on profits for three consecutive years within their first ten years of incorporation. - Lesser Legal Compliances
One of the benefits of the scheme is that the compliances are much easier to follow like self-certification for labor and environmental regulations. Now the new startups can focus on boosting their business instead of dealing with complex legal requirements and bureaucracy. - Recognised startups get direct access to Government Schemes:
After being recognised as a startup under this scheme, Recognised Startups can get the benefits by government schemes like credit guarantee and funding programs such as Fund of Funds for Startups (FFS) schemes. This scheme provides support by providing financial assistance to early-stage startups, which is the major stress of the new entrepreneur. - Exemption from Capital Gains Tax
A Capital Gains Tax is a kind of tax that is levied on the profit from the sale of any property or any investment. This Tax will not be applied if a startup is registered under the Startup India Registration Scheme. - Startup Patent Application & IPR Application
80% rebate in Patent fees & 50% discount in Trademark fees - Quick Winding Up of Company
Eligible startups can be wound up within 90 days of filing an application for insolvency, according to Insolvency & Bankruptcy Code, 2016.
Eligibility for Startup India Registration
Any business is eligible to get Startup India Registration or DPIIT Registration if it satisfies the following criteria:
- Private Limited/ OPC/ LLP/ Partnership Firm
- Company should be registered for less than 10 years
- Turnover should be less than Rs. 100 crores
Additional Requirements:
- The startup should by innovative and scalable. The Business must prioritize the innovation, development and improvement of product or services.
- The startup should be an original entity. It should not have been formed by dividing or restructuring an existing business.
Role of the Department for Promotion of Industry and Internal Trade (DPIIT)
The DPIIT supervises the recognition of startups under this initiative. Once the startup gets the recognition, it will get excess to the various benefits like, tax holidays, Credit guarantees and funding opportunities. DPIIT plays a crucial role, including verifying eligibility and issuing the Certificate of Recognition to Startups, which acts as a proof of registration.
Benefits of getting the startup registered under Startup India
- Strong Credibility in the Market: Startup india registration enhances the credibility of the business in the market.
- Large Networking Opportunities:This registration provides key access to industry experts, investors, and mentors.
- Global Exposure: This registration provides opportunities to participate in international startup events and programs.
Issues Faced by the Startups during the Registration Process
- Incomplete Documentation: incorrect or missing information can delay the approval.
- Unclear Business Objective : Sometimes Lack of Clarity in explaining the key innovative features of the startup may cause rejection.
- Technical Problems on the Portal: Due to error on the portal can delay the registration.
Tips for Successful Application
- Make sure that all the information is correctly filled in the application form, it is advisable to Double-check your details and documents before submission.
- By Providing precise and well described innovative features of your startup.
- Keep yourself informed about the latest Guidelines and procedures from DPIIT.
Required Documents for Startup India Registration
- Certificate of Registration/ Incorporation of the company, LLP or Partnership firm.
- Permanent account number ( PAN Card) of Company, LLP or Partnership firm.
- Intellectual Property details, like Patent and trademark details (if applicable)
- Business proposal or an overview of your startup’s innovative features.
Timeline for Startup India Registration
Generally, the registration process takes 10-15 working days from the date of submission, provided all information and documents are submitted in the correct manner as per the eligibility requirements.
Documents You’ll Get After Registration
Once your startup gets registered, you will get the Recognition Certificate from DPIIT.
Cost of Startup India Registration
The fees for Startup India Registration is Rs. 4999
Conclusion
Registering under the Startup India Initiative is a powerful step for the aspiring entrepreneurs who are keen to take their businesses to the next level and access government aided benefits. This recognition provides benefits from tax exemptions to funding opportunities and the global reach, while offering a great support system for startups to grow.