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The Government of India initiated the Startup India Scheme under the leadership of PM Narendra Modi. The Startup India Registration Process was introduced to nurture and encourage the growth of startups in India.
This scheme offers numerous benefits to the startups that register under it.
The scheme has a broad vision of development of the economy along with the creation of job opportunities in the country.
The eligibility criteria for startup India program is as follows;
The business must be registered under any of the following forms of business organization in India;
a) As a Private Limited Company under the Companies Act, 2013
b) Registered as a Partnership Firm under the Indian Partnership Act, 1932
c) Registered as a Limited Liability Partnership under the Limited Liability Partnership Act, 2008.
The turnover of the business must be less than 25 crores per year
The age of business from the date of registration must not be of more than 5 years
The business must not be a result of split or restructure of an existing business
The startup must be involved in innovation or development of new products, services or processes or significantly improving an existing one. Creation of wealth or employment is also an eligibility criterion.
It is mandatory to obtain certification from the Inter-Ministerial Board as set up by DIPP (Department of Industrial Policy and Promotion). This document is needed to certify the innovative functioning of the business.
The government offers multiple benefits to startups under the umbrella of startup India programme. The following benefits are available under this Scheme
Income Tax exemptions for three years
Startups get the benefit of self-certification of compliance with nine labour laws & environment laws.
Startups will be provided 80% rebate when they file for patent application.
The government will provide a 50 % rebate on trademark filing to startups under this scheme.
The platform provides support and recognition to new startups and made them able to compete with established business houses.
A Startup that aims to register under the Startup India Scheme needs to walk through the following steps;
This step is for businesses that are not yet incorporated or registered under the proprietorship form of business organisation.
It is mandatory to register as a Private Limited Company or a Limited Liability Partnership or a Registered Partnership Firm.
However, there is no extra registration step for the Startup India program while incorporating any of the above-discussed business forms.
The process of registration in startup India is online. This process is executed on the website of Startup India Scheme.
The startup needs to fill a form comprising questions related to business operations and future goals.
Additionally, certain documents are required to be uploaded to complete the process.
A recommendation letter must be submitted along with the registration form.
Any of the following will be accepted as a letter of recommendation
a. A letter from an incubator established at a post-graduate college in India
b. A letter of funding of not less than 20 % in equity by any angel investor, incubation or angel fund, angel network duly registered with SEBI
c. Letter of funding from government (Central or State)
d. A patent filed and already published in the Indian Patent Office Journal
Startups applying for this scheme need to upload the certification of incorporation or registration of their business.
The startup needs to provide a brief description of business activities, i.e. product/ services or both.
The startup should give information to prove that the business is innovative.
Such an entity must be solving a problem innovatively or making a significant improvement in pre-existing services or products.
The startup India program is a vital step taken by the government to support the startup ecosystem in India.
The startup India registration process is also simple and rationale for entrepreneurs to execute.
However, it is advised that one must ensure that they take Business Consultancy from industry experts to avail the maximum benefit from the scheme.