Start-up Registration
in India

What is Start-up India? Everything about Start-up India Scheme

The Government of India came up with the Start-up India scheme in the year 2016. The main aim of this scheme was to build a start-up environment in the country and encourage entrepreneurs to bring their innovative ideas to life. The goal is to turn job seekers into job providers. The key factor of this scheme is “INNOVATION.” The government aims to develop an innovative business that will build the economy of the nation by strengthening the business system and increasing employment opportunities.

A company is called a start-up for 10 years from its date of establishment. Earlier it was 7 years, but then the government changed it to 10 years. This was done to promote the start-up culture and also to help new companies use the opportunities and tax exemptions to develop further. If you want to bring your business under this scheme, then you need to do start-up registration in India.

Benefits of Start-up India Registration

The many benefits of registering as a start-up in India are:

Tax Exemption:

Start-up companies can avail of tax exemption under u/s 80IAC. If you have received funding from an Angel investor, then you can avail of U/s 56 relief for Angel Tax relief...

Government Funding:

Start-ups can apply for government funding that is being managed by SIDBI. The government has allocated Rs 10,000 crores through Alternate Investment Funds that start-ups can apply for...

IPR Govt. Fee Concession:

Start-ups can avail of 50%-80% fees concession in IPR Registration while registering a patent or trademark.

Tender Participation:

The government has provided relaxations in criteria such as turnover, EMD, and prior experience for start-ups that want to post tenders for government and PSU jobs.

Start-up Challenges:

Established companies like Mahindra, Aditya Birla, and WhatsApp conduct challenges for start-up’s and offer financial or other prizes.

Self-Certifications:

Under the 9 environmental & labour laws, start-ups are eligible for self-certification.

Easy Closure:

Under the insolvency & Bankruptcy code 2016, start-ups can wind up the company in 90 days.

Research and Innovation:

The Start-up India program encourages entrepreneurs to take up research and innovation by providing the necessary facilities and setting up research parks.

Eligibility Criteria for Start-up Registration

Companies need to meet the following eligibility criteria for start-up registration in India:

1The company needs to be registered as a limited liability partnership or a private limited company
2The company needs to be registered as a limited liability partnership or a private limited company
3The company should be less than 10 years old
4It should be funded by a private equity fund, incubation fund or Angel fund
5The company should have registered all funding details with the SEBI (Securities and Exchange Board of India
6A company remains a start-up if the turnover per year doesn’t go over the Rs 100 crore mark in any particular year, up to 10 years
7The company should have received a patron guarantee from the Indian Patent and Trademark office

The Complete Startup India Registration Process

If you are interested to know how to register a startup in India, then consider the following given steps:

1

Register the Business

The first step of setting up a business in India is to incorporate your business. You need to perform the startup India company registration, as a partnership firm, limited liability partnership, or a private limited company.

2

Register under Start-up India

To avail of the benefits and tax exemptions provided by the government, you need to register your company under the Start-up India scheme. The registration process is very simple and easy. Visit the Start-up India website and fill in all the relevant details in the form. You will also need to upload certain documents to complete the registration process.

3

Documents to upload

All the documents need to be uploaded only in PDF format. The documents that you need to upload to complete the online registration in Start-up India are:

  • 1 Incorporation or registration certificate
  • 2 A brief about your business
  • 3 Any one of the following recommendation letters in DIPP-approved format:
    • From an incubator in an established PG college about the innovative nature of the business
    • From an incubator recognised by the government of India
    • A recommendation letter describing how the business is a part of a scheme promoted for innovation by the government
    • A recommendation letter from any state government or the central government
    • A letter of funding that states that the company has 20% in equity by private funding, angel funding, private equity funding, accelerator, or incubation fund, which is registered in the SIBI
    • A patent that has been filed and published in the Journal of Indian Patent office, especially in the area where the business is being established and promoted
4

Tax Exemption

When you're filling the registration form for Start-up India, you need to mention whether or not you want to avail the tax exemption. Start-ups in India need not pay income tax for the first three years. However, you should note that the company needs to be registered with the Inter-Ministerial Board (IMB) to avail of the exemption.

5

Self-certification

The company needs to self-certify the following conditions:

  • The company is registered as a Private Limited Company, partnership firm, or LLP
  • The business was registered in India not less than 5 years earlier
  • The company’s turnover has not been more than Rs 100 crore during any of the financial years the business was operational
  • The business is based on an innovative idea and not based on any existing business
6

Recognition Number

The last step in the registration process is to get the recognition number. You will get this number immediately after all the documents have been uploaded. However, once all the documents are verified, you will receive the certificate of incorporation or registration.

Care should be taken while entering the data and uploading the files. If any discrepancy was found in the information or document, then you may have to pay a fine of Rs 25,000 or even up to 50% of your paid-up capital. To ensure that the registration process is smooth and error-free, avail the services of start-up India registration consultants.

List of Documents Required for Start-up Registration

Certificate of registration or incorporation

Details of the partners or directors of the firm (name, gender, mobile number, email ID, address, and photos)

PAN details

Any one of the following - Website details, video, pitch deck, patent

Documents of company details such as an address, registered office, industry, and sector

A brief description of the business, its innovative nature, products and services

Email ID and Mobile number

The revenue model of the business

Authorized representative details such as name, designation, contact details (phone number and email id)

The uniqueness of the product or service

Start-up India Action Plan

The key action points of the Start-up India scheme announced by the government of India are:

Why SetMyCompany for Start-up Registration?

There is a lot of paperwork and legalities involved in setting up a company in India. Also, there are many nuances in the start-up India registration process. From filling the form to uploading the document and processing the files, each step in the process of company registration in India needs to be carefully done. So, we suggest you get the assistance of professionals who have experience and expertise in the start-up India scheme.

SetMyCompany offers company registration services in India. We have a team of multi-disciplinary professionals who can guide and assist you through the entire process of setting up a company in India. Based on your business model, we recommend the type of company registration that’s best for you. Also, we will help you in the start-up India company registration process, from start to end.

If you have an innovative business idea and want professional assistance on how to start a startup in India, we will help make your idea become a reality. Contact us to know about the start-up registration fees and other details regarding the start-up India scheme

Legal Procedures for Startup Registration in India

There are a few legal aspects of a business that every start-up should be aware of. This fundamentally begins when the founder of the company has been clear about the type and nature of business; whether it is a private limited company or a sole proprietorship, etc. Upon formalizing the business structure, it is vital to get official business licenses that are applicable within India. This can be done procedurally with the registrar of India.

The company must also ensure to adhere to the standards and guidelines of various labour laws; some of them include The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, The Trade Unit Act, 1926, The Payment of Gratuity Act, 1972, The Employees’ State Insurance Act, 1948, and more.

And make sure to understand the taxation and the accounting laws, since there are various forms of taxes levied on corporations and that might vary with the type of organisation functioning as well as the sector it operates.

FAQs

Visit the Start-up India Scheme website. You need to fill the registration form and upload the document. SetMyCompany can also do it for you. Contact us to know more about start-up India company registration.

There are many financial institutes that offer business loans with or without collateral. You can also approach Angel investors to fund your business.

DPIIT recognised start-ups are eligible for various start-up India benefits. To know more details about the benefits, contact us.

You will get the recognition number immediately after submitting the form with the requisite documents. However, you will get the registration certification only after the documents have been verified. It could take a few weeks to get the certificate of recognition.

You need to do research and identify Angel investors and venture capitalists who are interested in investing in the kind of business you are planning to launch. Prepare a clear and detailed business plan and approach the investors to get them interested in your business.

You can get all the necessary details from the official page of SetMyCompany. All the information is valid, authentic, and updated as per the latest legal regulations.

It might be difficult to register a startup in India if you do not have sufficient knowledge about the forms to be filled and steps to be followed in the right order for registration. Yet, you can contact SetMyCompany, in case you need any support for the same.

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