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Startup India Registration

What is a Startup?

It’s a newly established Company, generally small, which is started by one or more people. The main purpose behind a startup is to grow faster & provide something to fulfill the market gap in any industry. There are no fixed parameters set for a startup, as they are totally independent to some level. Startups initiate with a product concept & strive to grow at pace. It’s not vital that all Startups make a profit during their initial stage.

Under the Startup India Scheme, eligible companies can get recognized as Startups by DPIIT, in order to access a host of tax benefits, easier compliance, IPR fast-tracking & more. Most startup companies are focused on increasing revenues and maximizing profits by various methods. However, the initial stage involves bootstrapping their organizations out of their hard-earned money. One of the ways to grow earnings is to reduce the cost. The government retains 30% of our income in form of tax which leads to higher costs. A startup is any small business commenced with the objective to solve a problem operated by the founder or a single person.

Benefits of Startup India Registration

Following are the benefits of Startup India Registration:

  • Easy Access of Funds: Rs. 10,000 crores fund is set-up by the Indian Government to provide funds to the startups as Venture Capital. The Government is also giving guarantees to the lenders to encourage banks & other financial institutions to provide Venture Capital.
  • Tax Savings for Investors: Individual investing their capital gains in the venture funds set-up by the Government will get exemption from Capital Gains and this will help all the Startups to attract more investors.
  • Income Tax Exemption: Eligible startups can be exempted from paying Income Tax for 3 Consecutive F.Y. (Financial Years) out of their first 10 years since Incorporation.
  • Easily apply for Government Tenders: Startups in India can easily apply for Government Tenders and they are exempted from the prior experience or turnover criteria applicable for normal companies answering to Government Tenders.
  • Rebate in Trademark & Patent Filing: Startups working under Startup India Registration Scheme will get 50% rebate on Trademark Filing and 80% rebate on Patent filing.
  • Easy Winding Up: The process of winding up of Company becomes very easy & it takes 90 days to wind up under IBC, 2016.

Eligibility criteria for Startup Registration in India

  • The Startup India Registration Certificate or DPIIT Certificate of Recognition is provided for the company which is registered as an LLP, Private Limited Company, or a registered Partnership Firm.
  • To get the Registration Certificate, the firm should have an annual turnover of less than Rs. 100 crores for any of the previous Financial Year.
  • The entity or company should be working towards improvement/development of a product, service, or process.
  • The entity or company should have a scalable business model with high potential for the creation of wealth & employment. The company or firm should have the capability to generate employment or create wealth.
  • The period of Company’s operations or existence shouldn’t exceed 10 years from the date of formation.
  • To get Startup India Registration Certificate or DPIIT Certificate of Recognition, the company shouldn’t have been registered by splitting up/recreating an already existing entity.
  • Applicants shouldn’t have defaulted with any financial institution in the past.

Documents required for Startup India Company Registration

Following is the documents required for Startup India Company Registration:

  • CoI or Certificate of Incorporation;
  • MoA (Memorandum of Association) & AoA (Articles of Association);
  • List of all designated Directors and Partners;
  • Contact details of all the Directors or Partners;
  • Latest Photos of all the Directors and Partners;
  • Details regarding the amount of investment and investors;
  • Details of IPR Registration;
  • Website or Mobile App link (if any);
  • Growth Plan and Business Plan;
  • Udyam Registration or MSME Registration;
  • Brief write-up on how the business is working towards (innovation in the industry, high potential for wealth creation, potential for employment generation).
 
     
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