When Prime Minister Modi launched the Startup India program, registering a startup in india became easier. As new entrepreneurs increased across nearly all business sectors in India, the initiative was created to support their growth. New business owners viewed the program as government support for their startups, which boosted their optimism.
On February 17, 2016, the government gave a notice explaining the requirements for startup India to be eligible for the Start-up scheme. But even today, most businesses still don’t know the criteria and whether they qualify for the scheme.
We have compiled a comprehensive guide that describes the entire process, qualifying requirements, and a great deal of other information to make things simpler for new firms.
How startups are registered in India
Step 1: Register your business.
Before startup registration, you must register your firm as a Private Limited Company, Partnership Firm, or Limited Liability Partnership in India.
By adhering to the regular procedures for registering a new firm, such as procuring a certificate of incorporation or partnership deed, obtaining a Permanent Account Number, and completing other requirements, business owners can accomplish this.
Depending on the nature and size of your business, you may need legal counsel at the outset.
Step 2: Participating in the Startup India Program
Next in the process of registering a startup is registering your company as a new venture. The Startup India Scheme has made it simple to register a business online from the comfort of your own home.
Logging into the Startup India website and filling out the startup registration form is sufficient. To register a startup, you must provide the company’s information and attach all necessary documents.
Step 3: Keep these documents on hand.
- Company’s certificate of incorporation or registration
- Letter of authorization from the authorised representative of the corporation, LLP, or partnership firm
- Pitch deck, website link, or video proof of concept
- Details of any patents and trademarks
- A list of any awards or certificates of honour
- PAN Number
Step 4: Utilize Tax Benefits
New businesses do not have to pay federal income tax for the first three years of their existence. However, for new businesses to qualify for these advantages, they must first obtain accreditation from the Inter-Ministerial Board (IMB).
Without a separate certificate from the IMB, DIPP and Indian government-recognized startups are eligible for IPR advantages.
Step 5: Self-Certification
The firm must self-certify the following conditions:
- The company is established as either a Limited Liability Partnership (LLP) or a Private Limited Company (PLC).
- Since its inception in India at least five years ago, the company’s annual revenue has never surpassed 100 crores.
- The company was started on an innovative idea rather than a pre-existing business.
Step 6: Acquire the Recognition Number
A certificate of recognition will be issued when the applicant has self-certified, and the competent authority has confirmed the required papers. It is vital that every document uploaded is legitimate.
The applicant shall be penalized a minimum of 25,000 or 50% of the startup’s paid-up capital if an erroneous document is submitted. Once the applicant has acquired the recognition number, they can file for a trademark, patent, and design registration through any of the government’s facilitators in India.
Who is eligible for Startup India?
The company must satisfy the following eligibility requirements:
Existence Period of Entity:
The company’s existence and operations duration should not exceed ten years from the date of its incorporation.
Entity Type:
The DPIIT Certificate of Recognition is issued to a Private Limited Company, Limited Liability Partnership (LLP), or Registered Partnership Firm.
Annual Revenue:
To qualify for the DPIIT Certificate of Recognition, the company must have an annual turnover of 100 crore rupees in any fiscal year since its inception.
Original Entity:
To be eligible for the DPIIT Certificate of Recognition, the business must not have been formed by severing or rebuilding an existing entity.
Innovative and Scalable Entity:
The entity should be engaged in creating or enhancing a product, process, or service. The entity must possess a scalable business plan with a strong income and employment generation potential. The company should have the ability to generate jobs and wealth.
FAQs.
Can I register a company in India for free?
No, Registering a Pvt. Ltd. in India will cost between INR 6,000/- and INR 30,000/-, with the actual amount dependent on factors including the proposed number of directors and members, the size of the authorized share capital, and the cost of professional services. The cost of hiring an expert could increase with the degree of difficulty of the work required.
What is the validity period of Startup India?
After the date of registration, the Indian startup recognition certificate is valid for a period of 10 years from that point forward.
Which registration is best for startup in India?
It is best for a small firm to be set up as either a sole proprietorship or a limited liability partnership (LLP), so that the business owner(s) can exercise primary or majority control over the company’s operations.
How much time it takes to register a startup in India?
Formally registering your company can take anywhere from 10 to 15 days, depending on whether or not you have all of the required documentation on hand.
What are the documents required for startup company in India?
- Director’s Complete Profile Verification Details.
- PAN Card Number.
- A written proof of your official website, pitch deck, or link.
- Startup’s incorporation or Registration Certificate.
- Details about patent and trademark.
- Articles of Association/Incorporation.
Who governs startups in India?
The Department for Promotion of Industry and Internal Trade (DPIIT) is in charge of working with other Government Departments to make sure that the Startup India initiative is carried out.
Conclusion
From start to finish, the process of registering a new business in India has become very easy. The government has done a lot to improve the economy, from registering new businesses to helping them grow in incubators to giving them money and tax breaks.
By making India a more attractive place for startups, the government is helping to build a bright future for Make in India and stop the brain drain to other countries.