Starting your business is quite a rewarding experience. Since nation today is working towards attaining & sustaining entrepreneurial ecosystem . Also owing to the extensive consumer market, this is going to push the new ventures and budding entrepreneurs in forward direction.
However, navigating the legal and regulatory requirements can be challenging, especially for startups as there are several crucial steps to follow when registering a startup in India. The reason is the thriving entrepreneurial ecosystem as well as the extensive consumer market, which will assist in pushing the small ventures forward.
So, navigation of the legal as well as the regulatory needs is quite challenging. This is especially true for all startups as there are many of the crucial steps that are required to be adhered to during startup registration in India.
What are provisions under startup India Scheme?
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The Government of India launched the Startup India program in the year 2016. So, this initiative has been introduced owing to several of the initiatives that have been adopted for assisting the business owners in creating the most thriving of startup environments, inventing as well, and transforming the country into the job creators and not just the job seekers. So, DPIIT, the Department for Industrial Policy & Promotion will be receiving the reporting from the Startup India scheme and this is going to oversee the program.
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What are perks to register startup in India?
There are several times when startups are required to take money on credit. So, in such a situation under the condition of normal partnerships, the personal savings as well as the personal property of the partners would be at risk. So, under such a situation, the businesses will not be in a position to make repayment of their loans. Under the PLC, a Private Limited Company, there will be a loss of investment in the business, and thus, startup registration will keep the assets of the directors safe.
The PLC is popular and also such type of corporate structure. So, there will be corporate consumers, vendors, as well as Governmental organizations that would be dealing with the PLC and not the proprietorship/ normal partnerships.
The private limited company will be enjoying an array of provisions for raising funding with respect to the bank loads, and venture capitalists in contrast to LLC or OPC.
The investors will be in the position of investing in the PLC as this is quite a well-structured entity with less possibility of the strings attached. So, the crucial thing is that it is quite convenient to exit from such business establishments.
For any of startup, bringing the team members together and retaining them for a long duration is a big challenge. This is owing to the immense confidence which is being attached to the Private Limited structure. So, it’s convenient to hire individuals as well as motivate everyone through designations as well as stock provisions.
This is crucial to register a startup in India and fulfill all the eligibility criteria for receiving all benefits. So, the government of India will be coming up with many distinct incentives as well as programs for rendering privileges to the startups.
What makes a person eligible for the startup Registration Scheme?
The applicant’s age is relying in between the bracket of 18- 65 years
The applicant will be capable of registering himself/ herself in the form of a PLC, Private Limited Company, Registered partnership firm, or LLP( Limited Liability Partnership).
The annual turnover will not be exceeding greater than INR 100 crores. So, the firm will retain its startup status for the duration and till the point when the annual turnover will remain below INR 100 crore within 10 years. But currently, the Government of India has increased the turnover rate to RS 25 Crorees.
Any business will qualify to become a startup for the initial ten years after the registration tenure. The Government of India has already raised the bar from 7 to 10 years for extending the opportunities as well as the tax privileges to the startups on a long-term basis. So, the applicant should not have defaulted through any of the financial institutions during the past.
Also, the businesses should be in the position of seeking approval from the DIPP.
There is an incubation fund/ angel fund/ private equity fund and funding of everything must be done to the business. So, whatever the funding details are, there must be the registration of the same with the SEBI.
How to follow procedure of startup Registration India?
Business setup
This is the first & foremost thing that is needed for incorporating the business whether it is the PLC/ partnership firm/ LLC. Furthermore, you are required to adhere to the regular process which will include form filling for getting the firm registered. So, the procedure will be entailing to the company registration, like seeking incorporation certification o partnership licensing. So, the process will be having the inclusion of seeking DIN, director identification no, DSC, and digital signature certificate, as well as submitting the documentation to the ROC, Companies Registrar. Also, the applicant will be in the position of visiting the MCA portal along with filing an application for startup registration in India.
Registering procedure
Now, there is a requirement to visit the startup India site and fill up the application form, along with all the requisite of business detailing along with uploading paperwork.
Once you have your profile set on site, the organization will gain access and permission to apply for several of acceleration programs, and initiatives for mentorships as well as know about all the challenges, on the platform.
Uploading requisite documentation
This is another factor where you need to upload all the requisite documentation in PDF format. So, make sure to select the option of a recommendation letter and this needs to be in combination of the registration form.
Mentioning in case you intend to avail of taxation benefits
The startups are exempted from taxation for an initial of 3 years in the country. So, to avail of such perks, make sure to certify the startup through the IMB, inter-ministerial board. So, the startups, the Indian Government as well as DIPP will be identifying all the IPR advantages and this would be without having any of the additional of certification from IMB.
For qualifying startup India Registration, ensure to meet below mentioned self-certified conditions
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Recognition Number
Once you accomplish the startup India registration procedure which will include all the requisite paperwork, you will be furnished a recognition number with immediate impact. In this manner, you will be seeking the incorporation certification only when authorities check all the uploaded documentation.
Also, you need to be very careful while you upload the information. This is owing to the fact that in case of furnishing any of the wrong paperwork, this is going to render a huge fine of greater than 50% paid-up capital or a minimum of fine of around INR 25000.
Once you are seeking the recognition number, make sure to register for trademarks, patents, and designing registration by getting in touch with the facilitators/registration experts.
Also, all the startups approved through the concerned authorities will be holding the eligibility with regard to the advantages of IPR and this is even when there is no approval from IMB. So, you are required to make payment of a legal fee.
Take assistance of startup India registration experts & realize your dreams
The Startup India Registration experts are here to understand all the unique requirements pertaining to establishing a new business.
The team is here to strive to support new and emerging businesses in all niches without any sort of hassle. Thus, you are required to complete the startup registration procedure with the utmost of care as well as responsibility.
