Startup India Registration
- Enhanced Infrastructure, including incubation centers
- IPR facilitation;
- A goal to increase the funding opportunities;
- Provide an extensive networking database for the entrepreneurs
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India’s startup ecosystem is thriving, with a growing number of young entrepreneurs emerging each year. With a supportive government backing, startups contribute significantly to the nation’s economic growth. These ventures introduce innovative solutions to societal challenges, often redefining existing products or services. Beyond promoting startups, this initiative drives employment opportunities and wealth creation.
The Startup India Initiative, championed by the Indian government, aims to nurture aspiring entrepreneurs. The accompanying Startup India Scheme provides crucial financial and mentoring support for the growth and expansion of startup companies.
Objectives of Startup India Movement
The Startup India Movement aims to create a robust ecosystem for innovation and entrepreneurship in India. The key objectives of this initiative include:
- Enhanced Infrastructure, including the establishment of incubation centers to support startups in their early stages.
- Facilitation of Intellectual Property Rights (IPR) to help startups protect their innovations efficiently.
- Increased Funding Opportunities by providing financial support, venture capital access, and government-backed funds.
- Comprehensive Networking Support, offering an extensive database for entrepreneurs and stakeholders within the startup ecosystem.
- A Simplified Regulatory Environment, including tax benefits, easier compliance processes, streamlined company registration, and fast-tracked approvals
Benefits of Startup India Registration
The Startup India Registration offers several benefits to new businesses, making it easier to start, operate, and grow.
Below are the key advantages:
1. Easy Access to Funds
- The Indian Government has set up a ₹10,000 crore fund to provide venture capital to startups.
- Additionally, the government provides guarantees to lenders, encouraging banks and financial institutions to fund startups.
2. Tax Benefits for Investors
- Investors investing their capital gains in government-backed venture funds will receive exemptions from Capital Gains Tax.
- This makes startups more attractive to investors, boosting funding opportunities.
3. Income Tax Exemption
- Eligible startups are exempt from Income Tax for 3 consecutive financial years within the first 10 years of incorporation.
- This helps startups reinvest their earnings into growth.
4. Ease of Applying for Government Tenders
- Startups can easily apply for government tenders without needing to meet the prior experience or turnover criteria that regular companies must fulfill.
5. Rebates on Trademark & Patent Filing
- Startups registered under the Startup India Scheme receive:
→ 50% rebate on trademark filing fees
→ 80% rebate on patent filing fees, making intellectual property protection more affordable.
6. Easy Winding Up of Business
- Under the Insolvency and Bankruptcy Code (IBC), 2016, startups can wind up operations within 90 days in case of business closure, reducing lengthy legal processes.
Eligibility Criteria for Startup India Registration
The Startup India Registration Certificate or DPIIT Certificate of Recognition is granted to startups that meet the following criteria:
1. Legal Entity Type
- The entity must be registered as a:
→ Private Limited Company (PLC)
→ Limited Liability Partnership (LLP)
→ Registered Partnership Firm
2. Annual Turnover Limit
- The startup must have an annual turnover of less than ₹100 crores in any of the previous financial years.
3. Innovation & Development
- The entity should be working towards the development, improvement, or innovation of a product, service, or process.
4. Age of the Startup
- The entity should be working towards the development, improvement, or innovation of a product, service, or process.
5. No Splitting or Reformation
- The startup should not be formed by splitting up or restructuring an already existing business.
6. Financial Compliance
- The applicant must not have defaulted with any financial institution in the past.
DOCUMENT REQUIRED
The following documents are required for Startup India Registration or DPIIT Certificate of Recognition:
1. Company Incorporation/Registration Certificate
- Proof of business registration as a Private Limited Company (PLC), Limited Liability Partnership (LLP), or Registered Partnership Firm.
2. Proof of Funding (If Applicable)
- Documents showing any financial backing received from investors, venture capitalists, or government schemes.
3. Authorisation Letter
- A signed letter from the company’s authorized representative approving the registration.
4. Proof of Concept (PoC)
- Any evidence showcasing the startup’s business model, such as:
→ Website link
→ Pitch deck
→ Video demonstration of the product/service
5. Patent and Trademark Details (If Applicable)
- Copies of filed or granted patents/trademarks, proving the startup’s intellectual property rights.
6. List of Awards or Certificates (If Any)
- Any recognitions, startup competition wins, or government-backed awards supporting the startup’s credibility.
7. PAN (Permanent Account Number)
- The company’s PAN card issued by the Income Tax Department.
1. Incorporate Your Business
To qualify as a startup, your business must be legally registered under one of the following structures:
- Private Limited Company (PLC) – Register with the Registrar of Companies (ROC) under the Ministry of Corporate Affairs (MCA).
- Limited Liability Partnership (LLP) – File for registration with the Registrar of Companies (ROC).
- Partnership Firm – Register with the Registrar of Firms under the State Government.
2. Register with Startup India
Once your business is incorporated, proceed with the Startup India registration:
- Visit the Startup India website (www.startupindia.gov.in).
- Sign up and create an account on the portal.
- Fill in the Startup India Registration Form and upload the required documents.
This step is essential to become a recognized startup under the Startup India Initiative.
3. Obtain DPIIT Recognition
After completing the registration on the Startup India Portal, the next crucial step is to secure recognition from the Department for Promotion of Industry and Internal Trade (DPIIT).
DPIIT recognition offers multiple benefits, including:
- Tax exemptions (Section 80-IAC & Angel Tax Exemption).
- Government funding support.
- Easier compliance and faster patent registration.
To apply, log in to the Startup India Portal, navigate to the DPIIT Recognition section, and submit the required details.
4. Obtain Your Startup India Recognition Number
Once you submit your DPIIT application:
- You will immediately receive a DPIIT Recognition Number, which serves as a preliminary acknowledgment of your startup registration.
- The Startup India Certificate of Recognition will be issued after authorities review and verify all submitted documents.
This certificate officially confirms that your startup meets the eligibility and compliance criteria under the Startup India Initiative.
5. Avail Startup India Benefits
After obtaining your DPIIT Certificate of Recognition, your startup becomes eligible to apply for various benefits, such as:
- Income Tax Exemptions – Apply for a 3-year tax holiday under Section 80-IAC.
- Angel Tax Exemption – Relief from tax on angel investments under Section 56(2)(viib).
- Patent Filing & IPR Services – 80% rebate on patent filing and 50% rebate on trademark filing.
- Government Tenders – Apply for tenders without needing prior experience or turnover requirements.
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Frequently Asked Question
What are the benefits of registering as a Startup in India?
- Tax Benefits – Eligible for Income Tax Exemption (80-IAC) for 3 years.
- Self-Certification – Compliance relief under labor and environmental laws.
- Easier Funding – Access to government funding schemes.
- Fast-Track Patent Process – Reduced fees for patent applications.
- Government Tenders – Startups can apply for public procurement without prior experience.
2. What are the tax benefits available for registered startups?
- Income Tax Exemption (80-IAC) – Startups can get a 3-year tax holiday.
- Angel Tax Exemption (Section 56(2)(viib)) – Exemption on funding received from angel investors.
- Capital Gains Tax Exemption (Section 54EE) – Investment in a fund notified by the government is tax-free.