Startup India is India’s flagship initiative for innovation and entrepreneurship. Startup India aims to provide a platform for young entrepreneurs to realize their vision, generate employment opportunities, promote economic development, and leverage government resources, mentorship, and support.
The Startup India Scheme aims to create a vibrant startup ecosystem and create a strong and inclusive space for innovation and business in India.
What is a Startup?
A start-up is a new-age business entity that brings in new ideas for solving existing problems available in the market using their products and services. A startup tries to provide more comprehensive services.
What sets it apart from other companies is that a startup provides a new product or service that isn’t available in the same way anywhere else. Startups are primarily motivated by innovation and the desire to achieve growth and progress.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), the classification of the startup is broken down as follows.
1. Company Age
The duration of the company's existence and activities should not exceed 10 years from the date of incorporation.
2. Company Type
Under the Companies Act 2013, the business firm must be incorporated as one of the entity types listed below.
- Private Limited Company
- Partnership Firm
- Limited Liability Partnership
3. Annual Turnover
The annual turnover of the company should not exceed Rs. 100 crore for any of the financial years since its incorporation date.
4. Original Entity
Entity should not be created by tearing down or building on an existing business.
5. Innovation and Scalable
The most important factor for any business is the scalability and innovation of the idea. The scalability & innovation of the idea is the most important factor for the business. DPIIT prioritizes the scalability & innovation factors before the startup India recognition.
Process for Startup India recognition under DPIIT
1. Incorporation of the business
Before seeking recognition from Startup India, the applicant must ascertain their eligibility. The applicant's organization must be duly established as a legal entity under the provisions of the company registration act, falling under the specified category.
- Private Limited Company
- Partnership Firm
- Limited Liability Partnership
2. Creation of a profile on the startup India Portal
The next step is to register for an account on the portal by completing an online form and providing the necessary information, including an OTP and email address, to confirm one's identification. Following the completion of the profile creation, the applicant will be qualified for the following.
- Pro-bono Services
- Website Challenges
- Government Schemes
- State Policies for Startups
- Incubator/mentorship programs
- Learning and Development Program
3. DPIIT recognition for Startups
The startups must apply for DPIIT recognition after creating their profile. Go to the startup recognition form from the dashboard to apply for recognition. To finish the procedure, you must enter the requested information, such as the firm data.
Documents required for Startup India Registration
The documents are must be submitted by the entities for recognition of Startup India by DPIIT are given below.
- Certificate of Incorporation
- Companies P.A.N. Card
- Director's Aadhar & P.A.N. card
- Passport-size photograph of the directors
- Website or company profile deck (if available)
- Photo & video of products/services
- Authorization Authorization Letter
- Brief write-up on how the business is working towards:
- Innovation in the industry
- High potential for wealth creation
- High potential for employment generation
- Other certificates, if available
- G.S.T. registration
- MSME registration
- Trademark registration
- Copyrights registration
Startup India Registration Fees
The cost for obtaining DPIIT recognition under the Startup India initiatives is a mere 3,999 rupees, and the entire process is expected to be completed within 20-25 business days.
Benefits of Startup India Registration
The Startup India scheme provides many benefits after registering the Startup India scheme.
1. Self Certification
Startups can self-assess their compliance with 6 Labour Laws and 3 Environmental laws through a straightforward online process.
2. Tax Exemption
Acknowledged startups have three straight fiscal years of income tax exemption for the first ten years following their incorporation. By Section 56 of the Income Tax Act, they may also petition for exemption from angel tax.
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3. Easy winding up of the Company
You can close your business within 90 days of submitting your application.
4. Patent Application and IPR Services
Startups that are recognized by the DPIIT get substantial benefits while handling patents and other IPR services at a fraction of the cost. Startup India offers an 80% discount on patent filing and a 50% discount on trademark filing.
5. Access to Funding
Startup India provides two types of startup funds: a. The FSF (Fund of Funds for Startups) b. The SISFS (Startup India Seed Fund Scheme).
6. Easier Public Procurement Norms
Government Ministries, Departments, and Public Sector Undertakings (PSUs) have been given the green light to waive the rules in all public procurement for DPIIT-recognized startups.
Conclusion
Startup India Scheme has helped over 90,000 companies grow since its launch. Your business can grow too if you follow the process carefully submit all the required startup registration documents and wait for your startup India certificate.
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