Startup India Registration: What You Need to Know to Get Started

Overview

In recent years, India has seen a huge surge in business activity, with startups playing an important role in fostering innovation, technology and economic growth. The Government of India launched the Startup India initiative  to support and nurture this vibrant startup ecosystem. Registration as a Startup, offers tons of  benefits and incentives to eligible startups. In this blog, we will provide information regarding what important things you need to know regarding Startup India registration.

What is the Startup India Scheme?

First of all, know about the Startup India Scheme. Startup India is a flagship scheme of the Government of India, which was launched in 2016 by the prime minister,  to build a futuristic and sustainable ecosystem of innovation and entrepreneurship by promoting formation of new companies and reducing restrictions on formation. 

The scheme is formulated in a manner to provide a supportive platform for startups, offering them several benefits like funding support, tax benefits, exemption from environmental and labour laws and access to a huge network of investors, domain experts and entrepreneurs. 

Startup India’s primary goal is on nurturing and fostering innovation and promoting business acumen in the country, promoting sustainable economic growth and employment generation through technology on a large scale. 

The scheme is under the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry. Businesses who are registered as a Startup can get various benefits from the government as well as from the private sector.

The scheme has various concessions, provisions, benefits and incentives for companies registering as startups, making it especially attractive for young entrepreneurs. The Government with its flagship scheme wants to make India a global startup giant. 

Definition Of Startup

Now we must know what is the definition of startup. Companies working in sectors like Space Exploration,  Drone Technology, Designing, Ecommerce, Educational Technology, Cybersecurity, Financial Technology, Artificial Intelligence, Logistics, Cloud Services, Information Technology Services, Telecom Healthcare, Marine Exploration, Agritech, Aviation, Defence, Blockchain, Internet of Things, Food Business Aggregators etc are typically considered as Startups. 

Objectives Of Startup India

Some Objectives of Startup India:

• Promoting entrepreneurship and innovation. 
• Promoting  ease of doing business for startups.
• Facilitating access to funds, mentorship, and resources.
• Inculcate a sense of entrepreneurship among youth. 

Benefits of Startup India Registration

• Startups registered under Startup India are eligible for various tax incentives, including a three-year income tax exemption and a capital gains tax exemption.
• Registered startups can participate in government procurement programs and benefit from preferential treatment in public procurement processes.
• Startups get a reduction in patent registration fees.
• Startup India registration provides Fast Tracking of IPR and other schemes to provide IPR protection.
• There is a 90-day period of exit window in bankruptcy cases. 
• Startup India grants freedom from labour inspections for the first 5 years of operation.
• Startup India provides Self-certification for labour and environmental laws.
• Startup India provides access to Innovation hubs and centers under Atal Innovation Mission.
• Startup India provides Ease of Doing business
• Registered startups have access to funding opportunities through government schemes, venture capital funds, angel investors, and other financial institutions. They also have access to rupees 10,000 crore startup corpus.
• Startup India registration streamlines regulatory processes and reduces compliance requirements, making it easier for startups to focus on their core business activities.
• Startup India provides networking opportunities, mentorship programs, and access to industry experts, helping startups to grow and scale their businesses.

Eligibility Criteria

After you have understood about Startup India Scheme, its objectives and benefits. Now learn about the Eligibility Criteria for Start Up Registration before:

• Your startup company can only be registered as a private limited company, limited liability partnership (LLP), or partnership firm. 
• Sole proprietorships and public limited companies are not permitted for Startup India registration.
• Your company should be in operation for less than ten years.
• The annual turnover of your company should not exceed ₹100 crore in any of the previous financial years.

• Your startup must be working towards designing, exploring, inventing, development, innovation, deployment, or commercialization of new processes,  products, or services driven either by technology or intellectual property.

Startup India Registration Process

Now that you have understood the eligibility criteria, start the process of registering your startup.  Following is the registration process for Startup India:  

Preparing Documents: First step in registration is to compile the necessary documents, including:

• Certificate of Incorporation/Registration.
• Details of directors/partners.
• Brief description of the innovative nature of your business.
• Letter of recommendation (if any).

Create an Account on the Startup India Portal: Visit the official Startup India website (www.startupindia.gov.in) and create an account by using your email address, mobile number and set a password. 

Fill in the Application Form: Log in to your account and fill in the Startup India registration application form with accurate information about your startup, its innovative nature, and potential for scalability.

Upload Documents: Upload the needed documents in the prescribed format. Ensure that all documents are clear to read.

Self-Certification: There is a facility of self certification for Startups. Declare compliance with the eligibility criteria through a self-certification process. Ensure that all information provided is correct, updated and accurate.

Submission and Review: Submit the completed application for review by the Startup India team. The team will evaluate your application based on the provided information and documents.

Recognition: Upon successful review, your startup will be recognized under the Startup India initiative. You will receive a recognition certificate and access to various benefits and incentives.

Conclusion

Startup India registration opens up new opportunities for new entrepreneurs and innovators. By following the process outlined in this article, you can kickstart your journey towards building a successful startup venture. Take advantage of the benefits and incentives offered under the Startup India initiative by the government to fuel your entrepreneurial dreams and contribute to India's growing startup ecosystem.

FAQ’s

Q1.What are the benefits of Startup India registration?

Ans. Some benefits of startup India registration are:

• Funds from Startup India corpus.
• IPR protection.
• Freedom from labour inspections for 5 years. 
• Collaboration between startups and industries.
• No filing of Capital Gains Tax for the first 3 years.
• No income tax obligations for the first 3 years of operation.
• Self-certification for labour and environmental laws.

Q2. What is the eligibility criteria for Startup India?

Ans. Below is the eligibility parameters for Startup India Registration:

• Companies must be Incorporated as a Private Limited Company/Partnership Firm/LLP

• The annual turnover of firms should not exceed rupees100 crores in any of the previous financial years.

• The business must not be older than ten years from incorporation date. 
• A startup should be an original entity and should not have been constituted by reconstructing or splitting up an already existing company. 

Q3. Why is Startup India registration done?

Ans. Startup India registration is done to get benefits of the startup india scheme operated by the Ministry of Commerce and Industry,  as well as other benefits from the corporate world and investors.  

Q4. What is the purpose of Startup India?

Ans. Purpose of the Startup India scheme is to create an environment of entrepreneurship in the country, boosting growth and employment. 

Q5. How much time does it take to get registered in Startup India?

Ans. It takes approximately 5-7 days to get registered in Startup India.