Startup India Registration

Introduction

Startup culture is booming in India. The Government of India too intends to promote this high sentiment. To boost the further growth of start-ups, Indian Government started the Start up India Initiative on January 16, 2016. Startup India is a flagship project of Government of India that is started to build a strong eco-system to nurture innovations in the country which can lead to sustainable economic development of the country and generate large scale employment opportunities.

The objective of start-up India registration is to reduce the regulatory burden on start-ups, thereby allowing them to focus on their core business and keep compliance cost low.

• Start-ups shall be allowed to self-certify compliance with 6 Labour laws and 3 Environmental Laws through a simplified online procedure.
• In the case of labour laws, no inspections will be conducted for a period of 5 years. Startups may be inspected only on receipt of credible and verifiable complaint of violation.
• In the case of environment laws, startups which fall under the ‘white category' (as defined by the Central Pollution Control Board (CPCB)) would be able to self-certify compliance and only random checks would be carried out in such cases.

FEATURES OF START UP INDIA INITIATIVES

• Compliance regime based on self-certification in labor laws and environmental laws.
• Work as a Single point of contact for the entire start-up ecosystem, enables knowledge exchange and access to funding.
• Legal support and fast track examination of Trademark and patent applications at lower cost
• Various tax exemptions under section 56 and section 80-IAC of the Income Tax Act
• Fast track exit of Start-ups within a period of 90 days from the date of application filed for the same.

BENEFITS OF REGISTERING WITH STARTUP INDIA

• Start-ups registered under DPIIT are eligible to apply for government tenders without having to show prior proof of experience or having a minimum yearly turnover.
• Registered start-ups are eligible to apply for exemption from angel tax under section 56 of the Income Tax Act.
• Start-ups are also eligible to get a tax exemption under section 80-IAC i.e. tax holiday for three consecutive years.
• DPIIT-recognized start-ups can list themselves as sellers on the Government e-Marketplace (GeM) which is the country's largest e-procurement portal.
• The cost of filing patents and trademarks can be low. Start-up India provides 80% rebate to file patents and a 50% rebate on the trademark application. Your application can be processed within 72 hours.
• There are two different types of funds that start-up India has for DPIIT-recognized start-ups.
• DPIIT recognized start-ups can shut down within 90 days from the date of application.
• Under the start-up India scheme, start-ups have the benefit of participating in public tenders. Also, they are relaxed from the requirement of prior experience, EMD, or turnover criteria.
• Startup India scheme offers great opportunities to network with variety of start-up stakeholders at a specific place and time.

ELIGIBILITY FOR REGISTRATION OF START-UP INDIA

• It should be a Private Limited Company/ LLP/ Partnership firm
• It should offer some innovative product or service
• It should not be older than 10 years form the date of its incorporation or registration
• Entity's business model should by such that it has the potential to generate high employment and wealth creation
• Turnover doesn't exceed Rs. 100 Crores

DOCUMENTATION TO REGISTER ENTITY UNDER START-UP INDIA SCHEME

• Certificate of Incorporation
• MOA and AOA of the company
• List of directors or partners
• Contact details of directors/ partners
• Information related to Awards and certificates received by entity
• Details related to investments and investors of the company
• Details related to IPR registrations.
• Link to entity's website
• Udyam/ MSME registration certificate
• Details related to business plan

PROCEDURE TO OBTAIN START-UP INDIA REGISTRATION CERTIFICATE

Major steps to register an entity under start up India scheme are as follows:

• Register the entity at the portal of start up India i.e. https://www.startupindia.gov.in/
• Login to the user Dashboard using Login credentials
• Fill the required form given to get the DPIIT recognition
• Upload the required documents in PDF format
• If you need tax exemption then please mention it
• Get your recognition number