Who are eligible for Startup India Registration?

Startup India Scheme
Startup India Scheme is a flagship initiative of the Authorities of India, supposed to construct a robust eco-system for nurturing innovation and Begin-ups within the nation that can drive sustainable financial progress and generate giant scale employment alternatives.

Begin-up India Scheme is applied by means of the Division of Industrial Coverage & Promotions (DIPP), Authorities of India.

A enterprise can be recognised as a ‘Begin-up’ below this scheme solely after acquiring a Certificates of Registration from Begin-up India Hub.

Situations for recognition as a ‘Begin-up’
To get recognised as a Begin-up below the Startup India Scheme, a enterprise entity should full fill the next situations:

1. The enterprise have to be registered have to be registered as a

Personal Restricted Firm below Firms Act, 2013
Restricted Legal responsibility Partnership below the Restricted Legal responsibility Partnership Act, 2008
Partnership Agency below the Partnership Act, 1932
2. The turnover of enterprise for any of the monetary years since incorporation/ registration has not exceeded Rupees 25 crores

3. The Enterprise is working in direction of innovation, improvement or enchancment of merchandise or processes or companies, or if it’s a scalable enterprise mannequin with a excessive potential of employment era or wealth creation

4. The enterprise can be recognised as Begin-up is for a interval of seven years from the date of its incorporation/ registration; nonetheless, within the case of Begin-ups within the biotechnology sector, the interval shall be as much as ten years from the date of its incorporation/ registration. Any entity shaped by splitting up or reconstruction of a enterprise already in existence shall not be thought-about a ‘Begin-up’.

Strategy of Recognition as a Begin-up
1. Register the enterprise as a Personal Restricted Firm / Restricted Legal responsibility Partnership / Partnership Agency

2. Acquire PAN for the Enterprise

3. Acquire MSME Registration for the Enterprise

4. Make a short writeup on the next:

• What’s the drawback the startup is fixing?
• How does the startup suggest to unravel this drawback?
• What’s the uniqueness of answer by the startup?
• How does the startup generate income?
• Particulars of any awards/recognition obtained by the startup

5. File software at www.startupindia.gov.in with supporting paperwork reminiscent of Certificates of Incorporation / Registration

Begin-Up India Hub will evaluation the appliance and if the appliance fulfils the Begin-up India tips and situations, will grant recognition as a Startup and can difficulty the Certificates of Recognition.

Advantages for recognised ‘Begin-up’
Asper the rules of DIPP, a recognised start-up will get the next advantages:

• Self-Certification: For Compliance below 9 environmental & labour legal guidelines
• Tax Exemption: Earnings Tax exemption for a interval of three consecutive years and exemptions on capital good points & investments above Honest Market Worth.
• Straightforward winding up of firm: Inside 90 days below insolvency & Chapter code 2016.
• Startup Patent Software and IPR safety: Quick observe & as much as 80% rebate in filling patents.
• Simpler Public Procurement Norms: Exemption on EMD and minimal necessities. Get listed as a vendor
• SIDBI Fund of Funds: Funds for funding into startups by means of Alternate Funding Funds.
• Observe: All of the above advantages are topic to respective tips and situations as could also be prescribed by the Authorities of India once in a while

IMPORTANT NOTES
The enterprise entity shall stop to be a Begin-up on the next situations:

On completion of seven years from the date of its incorporation/registration
if its turnover for any earlier 12 months exceeds Rupees 25 crores.
Nevertheless, in respect of Begin-ups within the biotechnology sector, an entity shall stop to be a Begin-up on completion of ten years from the date of its incorporation/ registration or if its turnover for any earlier 12 months exceeds Rupees 25 crores.

Exemption of Earnings Tax for Startups (80-IAC)*
After acquiring the popularity as a ‘Begin-up’ below the Begin-up India Scheme, a Personal Restricted Firm or a Restricted Legal responsibility Partnership included on or after 1st day of April 2016 however earlier than 1st day of April 2021 can apply for exemption of earnings tax for 3 consecutive years below Part 80-IAC of the Earnings Tax Act.

After evaluation of software and paperwork and knowledge, info and if deem match, the Division will difficulty a Tax Exemption Certificates to the Begin-up. Solely after acquiring the Certificates, the Begin-up can avail the exemption of Earnings tax.

Exemption from Angel Tax *
After acquiring the popularity as a ‘Begin-up’ below the Begin-up India Scheme, a Personal Restricted Firm who complies sure particular situations can apply for exemption of Angel Tax (Tax on Share Premium) Beneath Part 56(2)(viib) of Earnings Tax Act.

After evaluation of software and paperwork and knowledge, info and if deem match, the Division will difficulty a Tax Exemption Certificates to the Begin-up. Solely after acquiring the Certificates, the Begin-up can avail the exemption of Earnings tax.