A Complete guide to Startup India Registration

Introduction

Are you starting your own business in India? The Startup India initiative is your go-to guide for endless opportunities. This guide breaks down the process, highlighting the key steps laid out by Startup India.

Understanding of Startup India

Before we delve into the guidelines, let's gain a clear understanding of what Startup India stands for. It's not just a program; it's a transformative initiative by the Government of India to boost innovation and entrepreneurship.

The Startup India Initiative began on January 16, 2016, with the goal of supporting entrepreneurs and building a strong startup ecosystem. The initiative aims to transform India into a place where people aren't just looking for jobs but are also creating them. The dedicated Startup India Team, under the Department for Industrial Policy and Promotion (DPIIT), oversees these efforts.

What is Startup India Registration

Following submission, the application undergoes a comprehensive evaluation, and upon successful assessment, the startup attains official recognition. This recognition grants access to a range of advantages, including tax exemptions and increased visibility within the entrepreneurial landscape.

Who is Eligible for Startup India Registration?

• The organization must be either a private limited company or a limited liability partnership or a Registered Partnership.
  
• Established Limit: The Company's Age Must Not Exceed 10 Years from the Date of its Incorporation.
• The annual turnover should not surpass Rs 100 crore in any of the ten years to maintain startup status.
• The startup must showcase innovative ideas and schemes.

Benefits of Startup India Registration

Tax Benefits

• Section 80 IAC Exemption: After approval, startups can enjoy a tax holiday for 3 consecutive financial years within the first 10 years of incorporation.
  
• Angel Tax Exemption: Section 56 of the Income Tax Act grants startups tax exemption on Angel Tax.

Self-Certification

• Labour Laws: No inspections for 5 years, inspections initiated only on a credible written complaint.
  
• Environmental Laws: 'White category' startups (Pollution Index up to 20) can self-certify compliance, with random checks.

Patents

• 80% rebate in filing patents for startups.
• Fast-tracked examination of patent applications.
• Central Government covers facilitators' fees for patent, trademark, or design filings.

Easy Winding Up

• Startups with simple debt structures or meeting specific income criteria can wind up within 90 days of insolvency application.
• Insolvency professional appointed for efficient closure, asset sale, and creditor repayment.

Public Procurement Norms

• Exemption from prior experience criteria in the manufacturing sector.
• No need for Earnest Money Deposit (EMD) in government tenders.
• Startups can list products on the Government e-Marketplace (GeM), facilitating procurement for government departments.

 What are the steps of startup India Registration

The process of Startup India registration involves several key steps to avail of the benefits and recognition offered by the program. Here's a concise overview:

1. Incorporate Your Company- Start by incorporating your company as a private limited company or a limited liability partnership.
2. Create Your Profile on NSWS Portal- Create a profile on the Startup India portal, also known as the National Startup Welfare Scheme (NSWS) portal.
3. Apply for DPIIT Recognition- Submit an application for recognition by the Department for Promotion of Industry and Internal Trade (DPIIT).
   
   
4. Recognition Application- Fill out the recognition application form with accurate details about your startup.
   
   
5. Documents for Registration- Provide necessary documents, including the certificate of incorporation, details of directors, and other relevant information.
   
   
6. Get Recognition Certificate After Approval- Upon approval, you will receive a recognition certificate from DPIIT, officially acknowledging your startup.
   
   
7. Recognition Number- Obtain a unique recognition number assigned to your startup for identification.

Startup india Portal

Explore a wealth of resources and support through Startup India's comprehensive offerings. Access pro bono services, knowledge modules, and insights into government schemes. Leverage the Idea Bank and engage with active programs designed to accelerate the growth of startups and aspiring entrepreneurs.

Visit the Startup India website (www.startupindia.gov.in) to unlock a myriad of opportunities and benefits, empowering you to navigate the dynamic landscape of the competitive startup world more effectively.

Conclusion

In conclusion, eligibility for Startup India registration is a pivotal step for aspiring entrepreneurs and startups. Meeting the specified criteria, including being a private limited company, Registered Partnership or limited liability partnership, remaining within the ten-year timeframe post-registration, and maintaining a turnover below Rs 100 crore per year, ensures continued recognition as a startup. 

Approval from the Department of Industrial Policy and Promotion (DIPP), funding from recognized sources, a patron guarantee from the Indian Patent and Trademark office, and adherence to SEBI registration for funding details are crucial aspects. By fulfilling these conditions, startups can avail themselves of various benefits and contribute to India's vibrant entrepreneurial landscape.