The Indian country has become the hub of startups in the whole of the ecosystem of the world. Infact, this country is standing as the 3rd having around 90,000 startups as well as more than 100 unicorn businesses with a worth of $ 30 billion. So, the government of India has started and is also promoting the startup initiative for assisting the aspiring of the businesses. Infact, the Government of India has simplified the whole of the procedure. Many young business enthusiasts will be following the few steps as well as the convenient process for getting the startups registered.
What perks startup India registration provides?
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Here are the perks rendered to the company if they undergo startup India registration:
The startups are rendered the income tax exemption and this is for 3 years from the incorporation date which is certified through the inter-ministerial certification board. Also, upon seeking identification from the DPIIT, Department of Promotion of Industry as well as the internal trade and when the aggregate of the paid-up share capital as well as sharing of the business entity premium once paid up issuing of the shares are done. So in case it is not exceed 25 Crores, the startups will be exempted from the capital gains tax and this is under the provision of section 56, Income Tax Act, 1961-2014.
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The startups are rendered a debate with respect to the intellectual property rights price of around 80% of the patents as well as 50% on trademarks and this will be actively assisted through the Government extended facilitators who will be helping in providing protection as well as the commercialization of the IPRs. The assessment as well as the IPR application disposal will be fast-tracked. So, the Government will be paying the cost of the facilitators.
Startup registration in India is a bit of a complicated process. It is owing to the reason that the incorporation, as well as the registration, is a bit complicated in comparison to the actual conduction of the business owing to the most extensive of the needs. So, under the startup India scheme, there will be the provision of a portal for the creation of networking chances as well as assistance for the new businesses. So, there will be a problem-solving window and this has been extended through the Government of India under such a scheme.
There are some states that will be extending the seed funding for the certification of the business under this type of scheme. This is for knowing more about the state as well as whatever the needs are in place
So, the regulatory perks are extended under the Startup India scheme and they will be facilitated for self-certifying compliance for more than 5 of the labor laws as well as 3 of the environmental laws. This is done through a simple and sophisticated process. In terms of labor laws, there will be no inspections carried out for 5 years unless and until there is credibility along with the verifiability of the violation complaint. Also, there will be filing in writing as well as the approval through the official who is a minimum of single-level senior in comparison to the inspection official.
What is eligibility criteria to register startup in India?
The eligibility criteria for getting the startups registered include:
There has to be the incorporation of the company as a private limited. Or there can be a limited liability partnership. As well as the incubation funding, angel funding or private equity funding must be sponsored by the businesses to facilitate its approval for the DIPP.
The organization should have got the patron guarantee from the side of the Indian patent as well as the trademark official. In addition to that, there will be requirement of the recommendation letter from side of incubator.
So, the organization will be capable of receiving the patron guarantee and this is from the Indian patent as well as the trademark official. So, there is also the need for a recommendation letter signed by the incubator.
So, either the startup should be new or not greater than 5 years, and the annual revenue should not exceed more than 25 crores.
So, the business startups should be such that it is working with respect to innovation, development, or product/process improvements. Thus the startup should be the scalable business entity having the high potential of the generation of the employment or creation of the wealth.
The prerequisites for documentation to register startup in India as well as the processes to apply for the loan as per the start-up India scheme are as follows:
The bank will be accepting the legal identity proof of the photograph which is issued by the Government of India.
Any type of official documentation demonstrating the individual as well as the addresses of the organization.
MOA( Memorandum of Association), and AOA( Articles of Association) paperwork of the company. So, when there is a need for the partnership firm/ partnership deed.
The borrower’s statement as well as the assets & liabilities of the guarantor. Also, the company needs to provide documentation of the three of the recent balance sheets.
Company’s incorporation documentation
The company registration certification from ROC
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How to register startup in India?
Establishment of business
This is the first and foremost step and the applicant is required to incorporate the business in the form of an LLC, PLC, or even a partnership firm. The applicant will then be required to adhere to some of the basic tasks for the purpose of startup registration in India. So, this will include seeking the PAN card of the company, incorporation certification, or partnership certification.
This is actually serving as the initial step and the applicant is needed to carry out the incorporation of the business which is in the form of LLC/ PLC or a partnership form. So, the applicant will need to comply to some of the basics of the provisions with respect to the registration of startups in India. Also, a business owner needs to provide the company’s PAN Card, and incorporation/ partnership certificate.
The recommendation letter will be issued from the incubator and this has to be in the format which will be suggested by the Department of Industrial Policy as well as the Promotion ( DIPP)
Support letter from incubator and this needs to be sponsored by the Governmental authorities
Recommendation letter from the incubator this will be authorized by the Governmental authorities
Incorporation or registration certification
The applicant is required to upload the LLP certification or business. Under the condition of the partnership firm, registration certification is needed.
Brief Description about business
The applicant is required to extend the description of the nature of the business
Step 4
Taxation Perks
For the initial three years, the startups will be exempted from income taxation. However, under the conditions of availing the advantages, the startups must be capable of seeking certifications through the IMB, inter-ministerial board. So, such startups will be acquiring recognition from the DIPP as well as the Governmental authorities can also seek the IPR advantages and this would acquire the additional certification from IMB.
Step 5
Here are the conditions that are required to be self-certified for startup Registration in India
Company Registration in the form of Private Limited Company, partnership firm, or LLC( Limited Liability Partnership)
Business incorporation should not be more than 5 years
Turnover of the company should not be less than around 25 crores
There should not be a split or reconstruction of the business in any situation.
Seeking recognition number
Once the applicant has the self-certification with regard to the above-mentioned steps, along with the verification of the documentation from the concerned authority, there will be a recognition certification that will be issued. So, the applicant must be in the condition of ensuring that there must be the upload of all the authentic as well as the valid documentation. So, there must not be any of the wrong paperwork to be uploaded. As this is going to lay a fine of 50% of the startup’s paid-up capital or a fine of Rs 25000. When the applicant will be seeking the recognition number, then they must be in the position of applying for trademarks, patents as well as design registration through the approach of any of the facilitators, having issuance from the Governmental authorities.
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Startup Registration in India is easy with expert guidance & assistance!
The startup is a business entity having the establishment of a single, two, or even more individuals. So, the biggest role of the startup is that it should be in a position to provide a new product/ service which is not been offered before or can extend the most unique of solutions to other of companies within the same domain. Since the country is standing 3rd in terms of establishment of the startups they will be seeking more of the startups each and every year. So make sure to look for the startup registration procedure, and eligibility as well as realizing your dream of starting a new business in a hassle-free way.
Today, this is the time when innovation as well as entrepreneurship will be deeply rewarded. So, the recognition as well as the incentives from the Governmental authorities will be extended to the startups for verification of the facts. Whenever there is startup Registration in India, it will host several compliance advantages as per the provision of the environmental as well as the labor regulations. So, the startups will be acquiring the tax exemptions as well as the exemptions on capital gains as well as the investments. So, the startup registration in India will assist in winding up the organizations within the 90-day window. Also, startups will be receiving around 80% of the rebate on all the filing patents as well as innumerable opportunities for investments. The applicant can also take the assistance of startup India registration consultants as they can get expert advice and the most transparent of pricing policy.
