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Startup Registration: Benefits and Procedure

Indian Startup Chamber

Admin
  • July 09, 2020
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Startup India scheme is a special initiative started by Indian government to encourage entrepreneurship in the country which would in turn lead to job and wealth creation. It’s a new way adapted by the government to fight against unemployment. With this scheme the government is trying to support the startups across the India by providing financial support and also many other benefits like simplification of work, opportunities to grab Government tenders, networking opportunities which will make the development and innovation of products and services easier. The whole idea behind the scheme is creating a greater number of jobs across the country. Startup India was launched on 16th January 2016 by Prime Minister Narendra Modi.


What is Startup India Registration:


For availing the different benefits under the Startup India plan it is necessary for the startup to register itself with the government under this scheme. For registering the itself with government under the scheme the startup needs to visit the Startup India website and fill certain forms that require your certain business details. The registration would also require to upload certain documents. This will finally complete the registration and thus the startup can avail all the benefits under the scheme.


Benefits of Startup India Registration:


Benefit of Self Certification:


The startup will not have to depend for the government authorities for inspection related to different laws like labour and environment laws. Startup will be allowed to self-certify itself for 9 labour and environment laws with the help of Startup mobile app. One the self-certification is done no inspection will be conducted for three years.


Easy registration and document verification:


The companies can register and upload documents through mobile application. Thus, all the approvals, registrations and filing compliances can be done online on a single platform.


Reduction in Patent Fee:


The patent application fee for the startup registering under the scheme will be reduced by 80% as the startup has to pay only the statutory fees rest all the facilitator fees will be paid by the government.


Rebate in TradeMark filing fee:


The startup will get a rebate of 50 % in trade mark filing fee if they are registered under this scheme.


Equal opportunities for all the startups:


Both experienced entrepreneurs and new startups will come on same platform and thus new startup will also get equal opportunities as experienced entrepreneurs. Earlier it was difficult for new startups to grow as for application prior experience and prior turnover was needed.


How to get Startup India Registration: Step by Step Guide:


Step 1: Incorporate your Business:

First the startup should be made a legal entity by incorporating the company as a Private Limited Company or Partnership Firm or a Limited Liability Partnership. This is done by following the normal procedure involved in registration of any business which involves the certificate of partnership or incorporation registration, PAN, and other necessary compliances.


Step 2: Register the company at Startup India portal:


The second step is the easiest step among all the steps. With the Startup India scheme anyone can register the startup by just sitting at their home. You need to login to the Startup India website and fill the registration form on the website. In registration form you need to fill some of the details related to your business and also have to upload certain documents.


Step 3: Certifying yourself:


This step is very important before getting the recognition number. The startup need to fulfil certain requirements like:

  • The new startup must be registered as Private Limited Company, Partnership firm or a Limited Liability Partnership.
  • The registration or incorporation of the business in India should not be more than 5-year-old.
  • The turnover of the company should be less than 25 crores per year.
  • The company must be involved in some type of innovation, the business must be involved in innovating new things or must be working to make the current technologies more advance.

Please note that the company should be new, it should be not a part of old company created due to splitting.


Step 4: Generation of recognition number:


After the completion of all the above step you will immediately get recognition number for your new startup but the certificate of recognition will be issued after all your documents have been verified. But if on verification it is found that any of the document is missing or document is wrong then you will be liable to a fine of 50% of your paid-up capital of the startup.


Step 5: Exemption of Tax:


The startups which have been formed after April 2016 will be exempted from income tax for 3 years provided that their annual turnover is less than Rs. 25 crores. For getting this benefit the startup should be certified by the Inter-Ministerial Board (IMB).

 

Documents required for Startup India Registration:


The documents required to register the startup on the Startup India website are:

  • Incorporation/Registration Certificate
  • Director details
  • Proof of concept / idea like pitch deck / website link / corporate video (in case of a validation / early traction/scaling stage startups) respectively
  • Patent and trademark details (Optional)
  • PAN Number


If you are facing any difficulty in Startup India Registration, please contact us at 9999500137 / 011-47557111 or email us at info@indianstartupchamber.com, our advisors will call you.

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