DPIIT Startup Registration (Complete Detail)
A startup is a brand-new business or company founded by one or more entrepreneurs who want to provide a high-quality service to the market. For these startups, the Indian government has introduced “Startup India Scheme.”
The Startup India initiative is for companies that meet the criteria to get recognition as a startup by the Department for Promotion of Industry and Internal Trade or DPIIT. This initiative will allow recognised startup companies to get benefits from governments such as lower compliance, tax benefits and so on.
The following article provides an overview of the registration process to get a DPIIT certificate of recognition for startups.
What Is DPIIT Registration?
DPIIT startup registration is a legal registration under the Startup India scheme that allows the government to recognise startup companies. The registration allows the applicant companies to reduce their regulatory burden and, thus, allows such growing companies to focus on their specific business models in order to grow profits and keep compliance costs low.
Recognised startup companies under DPIIT will be eligible to avail themselves of Intellectual property rights (IPR) benefits such as fast-tracking IPR without the requirement of any other license from the Inter-ministerial Board.
How Do I Register with the DPIIT Startup?
The registration process for the DPIIT certificate is simpler than it seems. There are a few steps that need to be followed, and one can register without much hustle.
- Incorporation of the business
In order to get recognised as a DPIIT startup, a company first needs to incorporate itself as a Private Limited Company or a Partnership firm or a Limited Liability Partnership (LLP).
It is the first and most important step toward certification.
2. Registering company with the Startup India Scheme
This step is the easiest one. To participate in the Startup India scheme, go to the official website and register on the portal under the company details.
3. Applying for Startup India Recognition
The applicant needs to visit the link for the Startup India recognition Portal for registration to get the certificate of recognition by DPIIT for startups.
Following are the steps or details needed for the online application process.
- Company information such as name, industry sector, industry type, categories, company incorporation number, and registration date.
- Proper complete address of the company
- Authorized representative details
- Details of present directors of partners
- IPR or Intellectual property right details
- Funding specifications
- Any recognition received by Company
After filling in these details, applicants need to upload a few required documents. After examining the details and the uploaded documents, DPIIT certificate of recognition will be issued. Once the application is approved, it will provide a unique startup recognition number, which will be helpful in getting tax benefits.
What Documents Are Required for DPIIT Startup Registration?
The following document list gives an overall idea of the expected requirements for DPIIT startup registration.
- Certificate of Incorporation/ Company registration proof of the applying company
- If the applying startup has received funding, proof of funding must be included.
- Certificate of awards or any recognition that the company has received so far
- Certificate of the patent published by the company (It should be published in the presently available journals)
- A basic overview of the nature of the business model includes the following details.
- How the startup is working or making innovations in the industry?
- The details of the developed products/ processes or services offered by the startup company
- What is the scale of the startup in terms of employment generation or profit incrementality?
- Proof of funds
- Supporting documents or letters from the central or state government authorities or any incubator which is recognised by the Indian government can be attached.
- The funding document should be more than 20% in equity by angel funds or incubator funds
Penalty for forged documents
- If the authority finds that the uploaded documents by the company are forged or illegal, the applicant company will face a penalty of 50% of the paid-up capital, up to a maximum of Rs. 25000.
What Is the Eligibility for a Startup to Be Recognized by DPIIT?
There are a few eligibility criteria that the applying startup must meet to secure a DPIIT certificate of recognition, which are as follows:
- Period of Existence of Company
The period of existence, or operating period, of the company must not exceed 10 years from the date of its formation.
- Type of company
The DPIIT Certificate of Recognition is only given to businesses that are registered as private limited companies, limited liability partnerships, or registered partnership firms.
- Annual Turnover
For any fiscal year since its inception, the company must have had an annual turnover of at least Rs 100 crore.
- Original Entity
The company should be an independently incorporated company and should not have been formed by splitting or recreating an already existing company.
- Innovation and scalability of the company
The business model of the company should work towards the development of innovative products or services while at the same time providing a business model that seems scalable in terms of potential growth and employment increment.
What Are the Benefits of DPIIT Registration?
The following benefits are given to a recognised DPIIT startup company.
- After gaining a DPIIT certificate for the startup, the company is allowed to self-certify compliance with three environmental and six labour laws.
Startup Patent application
- The DPIIT-recognized startup companies as being liable to pay just 80% of the fees for Patents, Trademarks, copyrights and design, and availing fast-tracking patent applications compared to their counterparts.
Easier Public procurement Norms
- The registered company will get access to list their products on the portal of the Government e-Marketplace
- The registered startups are not required to submit Earnest Money Deposits
- They are exempted from Prior experience in central government ministries and departments
Easy winding up
- As per the Insolvency and Bankruptcy Code, 2016, the company shall wind up within 90 days from the application of insolvency.
- The company will be eligible for 10,000 crores in funds from alternative investment funds.
Credit Guarantee fund
- It will be eligible to apply for Rs. 2,000 crore of credit guarantee funds via the National Credit Guarantee Trust Company or SIDBI for 4 years.
- After successful registration, startups are eligible to apply for tax exemption via section 80 IAC of the income tax act, as well as Angel tax exemption.
- Following successful tax exemption clearance, recognized startups are exempt from income tax for three consecutive fiscal years out of the first ten years since formation.
DPIIT registered startups list
FAQs: DPIIT Startup Registration
How long does it take for DPIIT registration?
The certificate of recognition can be issued within 2 working days, usually, once the application is submitted successfully with the required documents.
Is DPIIT registration mandatory?
Well, Yes. It is a mandatory step for business companies that are eligible for startup recognition. Plus, the registration will provide extra benefits once it is successful.
How do I get DPIIT certificate?
Following the simple steps mentioned above, one can easily register online for a DPIIT certificate.
What are DPIIT registration fees?
Startups do not need to pay any fees to the Ministry of Commerce and Industry for obtaining the DPIIT Certificate of Recognition for Startups.
It is advisable to register under the DPIIT registration for a startup if the company is meeting the criteria, as the successful application not only allows tax benefits but many other benefits that add up to the easy and fast growth of the company.
The registration process can be done online and is easy to follow, providing ease and access to growing companies. Looking for more information on Startup India Scheme? Visit our website Installing.
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