How do I register as a startup?
Steps to Register Your Startup With Startup India
- Step 1: Incorporate your Business.
- Step 2: Register with Startup India.
- Step 3: Get DPIIT Recognition.
- Step 4: Recognition Application.
- Step 5: Documents for Registration.
- Step 6: Recognition Number
- Step 7: Other Areas.
Which registration is best for startup?
Business Registration for Startup
- Private Limited Company.
- Public Limited Company.
- One Person Company.
- Limited Liability Partnership.
- Partnership Firm.
- Sole Proprietorship.
- Nidhi Company.
Self Certification Under Employment and Labour Laws: Startups can self certify under labour laws and environment laws so that their compliance costs are reduced. Self-certification is provided to reduce regulatory burden thereby allowing them to focus on their core business. Startups are allowed to self-certify their compliances under six labour laws and three environment laws for a period of 3 to 5 years from the date of incorporation. Units operating under 36 white category industries as published on the website of the Central Pollution Control Board do not require clearance under 3 environment-related Acts for 3 years.
Tax Exemption: Startups are exempted from income tax for 3 years. But to avail these benefits, they must be certified by the Inter-Ministerial Board (IMB). The Startups incorporated on or after 1st April 2016 can apply for the income tax exemption.
Documents Which Have Been Waived Off
Startup India has changed the procedure of registration since its inception. It has exempted most of the previous requirements now. Many documents which were required to be filed previously are waived off. The list of documents that are not required to be filed at the time of the registration are-
- Letter of Recommendations
- Letter of funding
- Sanction Letters
- Udyog Aadhar
- MSME Certificate
- GST Certificate
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Key Features of the Fund of Funds
- The Fund of Funds shall be managed by the Small Industries Development Bank of India (SIDBI)
- Life Insurance Corporation (LIC) shall be a co-investor in the Fund of Funds
- The Fund of Funds shall contribute to a maximum of 50% of the SEBI registered Venture Funds (“daughter funds”). In order to be able to receive the contribution, the daughter fund should have already raised the balance 50%. The Fund of Funds shall have representatives on the board of the venture fund based on the contribution made.
- The Fund shall ensure support to a broad mix of sectors such as manufacturing, agriculture, health, education, etc.
It’s very easy to register as a startup thanks to the various government initiatives. However, you can focus on your key area while we at E-Taxwala help you from start to finish right from incorporating your company to getting your startup recognition. Do visit our website to know more about startup services.
Frequently Asked Questions on Startup Registration India
Who can register with startup India?
An entity incorporated as a Private Limited Company, Partnership Firm or a Limited Liability Partnership can register themselves under the startup India scheme. The annual turnover of these business entities should not exceed Rs.100 crores, and they should have been in existence for up to ten years from the date of its incorporation/ registration. Such an entity should be working towards innovation, development or improvement of products or services or processes.
What are the benefits of signing up with startup India?
There are a number of benefits startups receive under the Startup India Initiative. Nevertheless, in order to avail of these benefits, an entity is needed to be recognised by the DPIIT as a startup. Startups are allowed to self certify their compliance with six labour laws and three environment laws. This is allowed for a total period of five years from the date of incorporation/registration of the entity. Startups are allowed a three-year tax exemption and the best intellectual property services and resources solely built to help startups protect and commercialise their IPRs.
What kind of business structure should I choose for my startup?
The most preferred business structures for a startup are Private Limited companies and LLPs. A Private Limited company is legally recognized and generally favoured by investors. However, it has stricter compliance and may have a higher cost of incorporation. Whereas incorporation cost is lower for LLPs and they tend to have relaxed compliance in comparison to the Private Limited Companies. In addition to that, LLPs have limited liabilities and are equally recognised by investors and all over the world.
What can I do to attract investors to a start-up?
To attract investors, not only do you need a stellar product with a scalable model, but you also need visibility. Make sure that your product receives healthy engagement and traction. You’ll need to register your startup on startup India and proactively seek out investors. Make sure you are able to effectively communicate your business idea to the investor and the sustainability of your business model.
Can a foreign company register under the Startup India hub?
Any entity that has at least one registered office in India can register itself on the hub, since the location preferences, for the time being, are only created for Indian states. However, soon the government hopes to start registrations for stakeholders from the global ecosystem too.
What is the difference between an accelerator and an incubator?
Startup incubators are typically institutions that help entrepreneurs by developing their business, especially in the initial stages. The incubation function is usually carried out by institutions that have experience in the business and the tech world. Startup accelerators support early-stage, growth-driven companies. These programmes usually have a timeframe in which individual companies spend anywhere between a few weeks and a few months working with a group of mentors who are educated and may also provide financial help.
For how long is a company recognised as a startup?
Any business entity that has completed 10 years from the date of its incorporation/registration, and has exceeded the previous years turnover of Rs.100 crores shall stop being a startup on completion of 10 years from the date of its registration/incorporation.
Can an existing entity register itself as a “Startup” on the Startup India Portal?
Yes, as per the law an existing entity can register itself as a startup, provided that it meets the prescribed criteria for a startup. They will also be able to avail various tax and IPR benefits that are available to startups. The criteria are the same as those mentioned in the article above.
How do I know my registration is complete?
Once the application is complete, and the startup gets recognised, you will receive a system-generated certificate of recognition. You will be able to download this certificate from the Startup India portal.
Eligibility for Startup India Portal Registration
Entity must be registered as Private Limited Company OR Limited Liability Partnership OR Registered Partnership firm.
Turnover should be less than Rs. 100 crores in any of the previous year.
It can be considered as a startup up to 10 years from the date of incorporation.
A Startup must be involved in the activities towards innovation or improvement in existing products or services and must be capable of generating employment or wealth creation
Documents required for Startup India Portal Registration
- Certificate of Incorporation
- MOA & AOA (in case of company)/Partnership deed (in case of LLP/Partnership firm)
- List of Directors/ Designated Partners
- Contact details of Directors/Partners
- Information related to Awards/certificates (if received by entity)
- Details related to amount of investment & investors.
- Details of Intellectual Property Rights Registration
- Website Link/Mobile App Link
- Udyam Registration/MSME Registration
- Business Plan & Growth Plan