Startup Registration In India

Hundreds of startups have mushroomed in India and are currently booming. The government, too, is encouraging and helping entrepreneurs in India establish startups. They are a great way to boost the economy and create employment for the youth of the country. To help in the endeavour, the Indian government introduced a scheme in 2016 called the Startup India scheme, with the main motive being the promotion of startups. This scheme is managed by DPIIT, the Department for Industrial Policy and Promotion. Read below to learn about the registration process for Start-up India.

What is Classified as a Startup?

A business is termed a startup if it is a newly or recently established business that is started by a single person or a group of people. The basic difference between a startup and another new business is that a startup is a business that offers some product or service that is unique and not done similarly. Companies with the following features fall into the space of startups and are entitled to DPIIT benefits.

The date of incorporation of the company should not be more than 10 years.
The type of the company should be a Partnership Firm as per the Indian Partnership Act, 1932; a Limited Liability Partnership Firm as per the Limited Liability Partnership, Act 2008; or a Private Limited Company registered under the Companies Act, 2013.
The company turnover should not be more than 100 crores in any of the financial years since its establishment.
The business entity should not be a sister concern or a result of the restructuring or split of an existing business. It should be a completely new business incorporation.
The startup should be involved in the development or innovation of new services or products. If it is an already existing product or service, it has to be an improvisation of the existing one. The business model proposed should have the potential to create employment and also generate revenue.
The business has to obtain a certificate, DIPP from the Inter-Ministerial Board, which is established by the DIPP.

Why Register your Business under Startup India?

There are many advantages to be had when you register your business with Startup India. The Indian government provides several benefits to startups working under their programmers. Some of them are listed below:

Can get Government Funding

The Government of India has made Rs 10,000 crore in fund allocations through alternative investment funds to invest in startups. The fund management is done by the Small Industries Development Bank of India, SIDBI. All startups can apply for funding under the quota.

Tax Benefits

One of the major benefits of registering under this scheme is that you can enjoy tax relief for three years. The exemption benefits can be availed of under Section 56 and Section 80IAC of Angel Tax Relief.

Tender Participation

Various tenders are called by PSUs and the government. Those startups registered under this scheme get relaxation in many tenders. Through these tenders, they can take part in public procurement. There are also benefits like relaxation of turnover criteria, EMD, and previous experience.

Participate in Grand Challenges

Many reputed organisations offer challenges to motivate entrepreneurs to find business solutions. Registering under Startup India gives entrepreneurs the chance to participate in these challenges and gain more funds. Some of the examples are Mahindra, Aditya Birla, WhatsApp, etc., which have started providing financial assistance to startup entrepreneurs.

Allow Participation in many Government Schemes

There are many government schemes announced on a regular basis to motivate startups. That includes help with raw materials, help with bank credit, assistance with financial schemes, and more.

Build Network

It helps with networking with other companies (big and small) and building a bigger pool of connections. This can help with more funding or be really advantageous in finding the mentorship needed for startups.

Self-certification

A business has to comply with many laws, which include environmental and labour laws. Startups get the benefit of self-certification with respect to compliance with many environmental and labour laws.

Patent Filing and Trademark Filing Rebate

Those who register under the Startup India scheme get an 80% rebate when filing a patent application. A 50% rebate is also assured at the time of trademark filing.

Easy to File for Bankruptcy

In case the business does not take off as expected, the winding up process becomes easy under this scheme. It takes about 3 months to close the business under the 2016 Insolvency and Bankruptcy Code.

All-in-all Startup India is a programme that gives many opportunities, as well as support and recognition, to all startups working under it to create a niche.

Steps to Register Under Startup India

Business Incorporation

The foremost step in the process of registration is to incorporate your business as a Partnership firm, Private Limited Company or a Limited Liability Partnership. Submit the registration application and the other necessary documents, pay the due fees to the Registrar of Firms or Registrar of Companies and get the incorporation certificate just like any other business registration.

Initiate the Process of Registering with Startup India

The next step is to register your business with Startup India. The process can be done online and is quite simple. Visit the Shram Suvidha Portal of the Ministry of Labour and Employment. Register at the portal using the Register button after providing your basic details like name, email address, etc. to create your profile. Post profile creation, login, and click on ‘“Is Any of Your Establishment a Startup’. Complete the steps by following the instructions. You can also get access to many resources, like state policies for startups, government schemes, and more.

Obtain DPIIT Recognition

After profile creation and registration for your startup, the next thing to do is get DPIIT recognition. This helps in getting access to relaxation in norms of public procurement, high-quality IP services, self-certification under environmental and labour laws, tax exemption, easy winding up of businesses, and more. To get this, log in with the registered account, go to the Recognition tab, and click on ‘Apply for DPIIT Recognition’. Click on the Next button and choose ‘Apply as Partnership Firm’ or ‘Apply as Company or LLP’ as appropriate. That will redirect you to the National Single Window System website. Register on this site and include the Registration as Startup form to obtain DPIIT recognition.

Fill Recognition Application

Enter details like office address, entity details, representative details, partner details, etc. and submit the form.

Submit Registration documents

The following documents need to be submitted

Registration/Incorporation certificate
Proof of Funding
Proof of concept of the project
Authorization letter of the firm
Trademark or patent details
PAN
Certificates of Recognition or list of awards

Get Recognition number

Once the documents are verified, which takes 2 days after submission, you will get a startup recognition number. But one thing to note is that if on verification the documents are found to be forged, then you shall be liable for a minimum Rs 25,000 fine or half of the capital paid up.

The idea of the government funding startups is to find a solution to a problem. For a startup to be registered under the Startup India scheme, it has to work towards something new, innovative, or improving existing solutions. The same has to be conveyed in the right manner. So you must write down the solution, the innovative nature of the service or product you are offering, and the revenue-generation model before starting the registration process.

Frequently Asked Questions

Does the Government Give Funds to Startups?

Yes, the government offers funds to startups in India recognizing their importance in driving economic growth and innovation. Different departments and ministries within the government offer several financial schemes to support startup company registration in Bangalore, covering sectors such as manufacturing, technology, healthcare and agriculture. A few important schemes are as follows:

Startup India Seed Fund Scheme initiated in January 2021. It helps early-age startups with funding up to Rs. 5 crores.
Startup India Initiative that offers several tax benefits to the entrepreneurs for more than 5 years.
Dairy Entrepreneurship Development Scheme launched by the Department of Animal Husbandry, Fisheries and Dairying. DEDS provides back-end capital for all bankable assignments for 25% of total project expenditure for the general category candidates and 33.33% for farms in SC/ST category.

If you want to avail the advantages of the government funding schemes mentioned above, ensure you have proper documents, such as pitch deck, business plan etc. For any kind of help with these documents or procedures in receiving the Startup India Recognition, trust the experts at Manoj Kumar D & Associates.

Is Startup India a Scheme?

Yes, Startup India is an important government scheme introduced on 16th January, 2016. Besides providing mentorship and financial support to entrepreneurs, this scheme also gives them a platform to network with other stakeholders, investors and industry experts.

Companies that have successfully completed startup company registration in Bangalore under the Startup India Scheme are entitled to several benefits like:

Self-certifying compliance for 3 Environmental and 6 Labor Laws online.
Exemption from paying income tax consecutively for 3 financial years and exemption from Angel Tax under Section 56 of the Income Tax Act.
Startup India offers 80% discount on filing patents and 50% discount on trademark filing to all startups in India.
Access to two different types of funding, like Startup India Seed Fund Scheme and Fund of Fund For Startups.

Based on catalyzing the startup culture in India, this scheme has already built a comprehensive and solid ecosystem for entrepreneurship and innovation in India. Manoj Kumar D & Associates endorsing the best startup registration and consultant services in Bangalore can help you in reaping the major benefits of this scheme.

Can a One Person Company get Startup India Recognition?

Yes, a One Person Company is eligible for Startup Indian Recognition provided its period of operation or existence has not exceeded 10 years from the formation date. There are other important criteria that a One Person Company should meet to get Startup India Recognition. These include:

During startup company registration in Bangalore, the company must be incorporated as a Limited Liability Partnership, Registered Partnership Firm or Private Limited Company.
The company’s annual turnover should be Rs. 100 crore for any of the financial years since its formation.
It must not have been formed by recreating or splitting up an already existing firm.
It must work towards improving and developing products, procedures or services.
The company must have a scalable business structure with proper employment and wealth generation potential.

Manoj Kumar D & Associates is a reliable partner for One Person Companies seeking recognition under the Startup India Program. With the company’s detailed knowledge and expertise of the regulatory landscape, OPCs can simplify the procedure of gaining Startup India Recognition.

How Many Days are Required to Obtain the Startup India Recognition Certificate?

Obtaining the Startup India Recognition Certificate takes around 7 to 10 working days. During this time, the government officers review all the documents and information provided supporting their Startup India Recognition application. Once approved, the certificate is issued and companies with Startup Recognition can immediately start reaping its benefits. For assistance with obtaining the Startup India Recognition Certificate and startup company registration in Bangalore, you can approach the qualified professionals and experienced MBAs and graduates at Manoj Kumar D & Associates.

Located in Koramangala, the firm offers technically sound Startup registration services along with services, like ROC Compliance, Accounts Outsourcing, Tax Audit, FEMA Compliance, LLP and Company Incorporations and registration under varied laws. The company professionals will prepare necessary documents and guide you through the eligibility criteria, ensuring adherence to all requirements put forth by the DPIIT or Department for Promotion of Industry and Internal Trade.

For How Many Years an Entity Get the Recognition of Startup?

An entity is considered a startup for up to 10 years from the date of its startup company registration in Bangalore, as a Private Limited Company, Limited Liability Partnership or Partnership Firm. However, to maintain the Startup Recognition for up to 10 years, a company must work towards improving and innovating its existing procedures, products or services and should also have wealth and employment generating potential. Simultaneously, the company’s turnover must not have exceeded Rs. 100 crores for any of the financial years since its registration. Companies formed by reconstruction or splitting up of an existing business many not get Startup Recognition.

By choosing Manoj Kumar D & Associates, entities with Startup Recognition can navigate the compliances, rules, and regulations to be followed while operating under this business structure. The company's team of 30+ qualified professionals can help you register your startup.

How to Connect With Other Startups and Investors after Getting the Startup Recognition?

Connecting with other startups and investors is important after getting the startup recognition, especially for business growth. It can help early-age startups to learn from experienced businessmen and even access some of the best funding opportunities. Nevertheless, finding and reaching out to the right individuals after startup company registration in Bangalore can be challenging considering the crowded and competitive market. However, the experts at Manoj Kumar D & Associates can help you transform this opportunity into a lucrative business process for you.

First, you can connect with other startups and investors on the Startup India portal. At this portal, you can respond to the investment opportunities launched by investors looking to invest in startups that meet their requirements. Or you can specify a relevant criterion, like technology or industry focus and look out for investors registered in this category. Further, you can send direct messages to the investors highlighting your proposal. Ensure maintaining a proper profile on the Startup India portal so investors can see you and your achievements.

Can the Tax Benefits Availed as soon as the Certificate is Obtained?

Yes, startups can avail tax benefits as soon as they get the Startup India Recognition certificate but they have to apply for tax exemption under section 80 IAC of the Income Tax Act. Once they receive tax exemption clearance, startups can avail tax benefits consecutively for 3 financial years out of their first ten years since formation. Nevertheless, a few eligibility criteria exist to apply for income tax exemption. These include:

The startup company registration in Bangalore must be done as a Limited Liability Partnership firm or Private Limited Company.
The company with startup recognition should have been formed after 1st April, 2016.

After getting Startup recognition, a company may also apply for tax exemption under section 56 of the Income Tax Act. Also known as Angel Tax Exemption, eligibility criteria for the same is:

DPIIT startup recognition
The aggregate amount of share premium and paid-up share capital of the company after the proposed share issue, if any, must not exceed Rs. 25 crores.

At Manoj Kumar D & Associates, they help startups in availing tax exemptions under section 80IAC of the Income Tax Act. You can trust the company’s all-inclusive services to reap the incentives and advantages offered under the Startup India scheme.

What is Startup India Recognition?

Since India is fast developing as a major hub for innovation and entrepreneurship, the government launched the Startup India Recognition initiative in 2016 to promote and support the growth of startups in the country. Under this scheme, the DPIIT or Department for Promotion of Industry and Internal Trade recognizes all startup that meet its specific criteria with a Startup India Recognition certificate. After getting this certificate, all entitled entities can register for startup company in Bangalore and start operating as a startup availing major benefits of the scheme.

Startup India Recognition helps companies reap several benefits, like patent filing support, tax exemptions and access to funds. This program is open for all startups registered as partnership firms, LLPs or private limited companies and have been in operation for less than 10 years.

If you are a startup looking for support and recognition, apply for the Startup India Recognition initiative. For any kind of help, you can reach out to the startup registration experts at Manoj Kumar D & Associates. The company will help you obtain Startup Recognition with its easy, affordable and quick services.