Startup Registration Process Details & Benefits
Startup Registration Process Details & Benefits
India is an emerging economy with a thriving startup Registration ecosystem. To capitalize on this positive sentiment and to further promote the emerging startup culture of the country, the Startup India scheme was launched by the Government of India on January 16, 2016. This article will discuss this scheme in detail.
Develop a streamlined process for onboarding new startups
The objective of the scheme is to integrate all relevant bureaucratic processes for seamless establishment of new startups. As part of the benefits of Startup India, the government has set up various specialized cells. These cells help young entrepreneurs with startup registration, obtaining patents and other related processes related to starting and managing a startup. The government has also introduced a policy to enable new startups to start their operations within 90 days of registration under Startup India registration process on payment of Startup India registration fee.
Provide financial support to new startups
To support new startups financially, the scheme provides various grants, loans and tax benefits. These initiatives will help new startups to bring in adequate capital to ensure smooth business operations. For this purpose, the government has set up a Rs. 10,000 crore fund that will help new startups over a period of 4 years. Hence, grants to new and upcoming startups up to Rs. Will be benefited. 2500 crores every year from the government.
Startup India Scheme Eligibility Criteria
Eligibility Criteria – Startup Identity (Business Type)
Only the below mentioned business types can be registered as startup under this scheme:
- partnership firms
- limited liability partnership
- private Limited company
Eligibility Criteria – Startup Recognition
Company turnover < Rs. 100 crores in any previous financial year.
The company will be considered as a startup for 10 years from the date of its formation.
The company should provide unique products/services.
The company must generate employment or create wealth.
Companies formed after reconstruction or split of an existing business cannot be recognized as a startup.
Startup India Tax Benefits – 80 IAC Tax Exemption
Once recognized as a startup, tax exemption is available under section 80IAC of the Income Act 1961. This tax exemption is available for any three consecutive financial years out of the first ten years from the date of incorporation.
Eligibility Criteria – 80IAC Tax Exemption
Startup should get recognition from DPIIT. Approval and recognition of DPIIT is necessary to claim tax exemption.
Only private limited companies or limited liability partnerships are eligible for the tax exemption.
Startups to be incorporated after April 1, 2016.
Eligibility Criteria – Section 56 Tax Exemption (Angel Tax)
Startup should get recognition from DPIIT.
The aggregate amount of the paid-up share capital and share premium, if any, of the Startup after the proposed issue of shares cannot be > Rs. 25 crores.
Key Benefits of Startup India Scheme
A startup registered under this scheme enjoys the following Startup India benefits:
Patents for new products/services are readily available at a discount
Most startups in India are patent-based because they provide unique goods/services. Hence, patents are a necessity for many startups to start their startup journey legitimately. Startups can easily obtain a patent for a new product/service through this scheme. Startups India benefits provide rebate of up to 80 per cent of the patent cost. Patient facility is also free under this scheme.
Tax exemptions and concessions to new startups
Startup India tax benefits include various tax concessions that are made available to new startups. For example, new startups are exempted from paying income tax for any three consecutive years within the first ten years after incorporation.
Seamless Registration Process
The Startup India registration process is very simple. The government has provided various hubs to guide entrepreneurs through the entire registration process and resolve queries. Now, a startup can also do Startup India registration online, making the registration hassle free.
preference in government contracts
Getting a government contract involves following rigorous procedures and criteria. However, startups registered under the scheme are given first preference for government contracts/tenders, making it easier to secure these contracts.
Self-certification available
Self-certification is allowed to the Startups registered under the scheme. They are allowed to self-certify for six employment laws and three laws related to environmental law. This benefit is available for five years.
strong networking
The scheme organizes two startup carnivals annually. It helps entrepreneurs to network with global stakeholders and build a strong network that will give them long term benefits.
- Documents Required for Startup India Registration
- certificate of incorporation
business pan card - MSME/GST/Trademark Registration Details (if available)
- Website of the Entity
- Particulars of the company’s directors
- Particulars of revenue generated
- Startup India Registration Fee
The Startup registration India fee (including professional charges) is fixed.The whole registration process is completed in approximately 15-20 working days.
Startup India Registration Online Process
Follow the below steps for Startup India registration online:
- Visit the official website of Startup India
- After creating an account, log in
- Fill in the application form
- Enter company particulars like name, registration details, etc.
- Enter particulars of director/partner/accredited representative
- Upload supporting documents
- Undertake self-certification
- Submit the form
- Post submission, verification will be conducted by DPIIT
- DPIIT approval will be granted if all documents are in order
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