Starting a business has never been exciting in India. With the focused government efforts on facilitating entrepreneurship through the Startup India Scheme, many benefits now await aspiring entrepreneurs. One crucial step to benefiting from these available opportunities is completing the Startup India Registration process. All you need to know about your startup registration under the Indian Government’s scheme are discussed in detail in this document.
What is the meaning of the Startup India Scheme?
The flagship program of the authorities of India initiated in 2016 to inspire innovation, entrepreneurship, and task introduction is the Startup India Scheme. In this regard, the government intends to decrease the regulatory burden, offer tax advantages, and create a facilitative environment so that the startups grow.
Registration below this scheme unlocks a series of incentives, which include tax exemption, funding support, and facilitation of highbrow assets.
Benefits of registering under the Startup India Scheme
The startup can avail all the following advantages after registering itself under the Startup India Scheme:
- Tax Exemption: The tax holiday for three years is offered to the startups that are registered under Section 80-IAC of the Income Tax Act.
- IPR Support: Faster trademark and patent application processes along with reduced fees.
- Funding and Networking: Dedicated fund of INR 10,000 crore, and networking opportunities.
- Ease of Compliance: Processes for Company Registration streamlined and compliance reports.
- Government Tenders: Access only to government procurements.
- Self Certification: Self Certification under labor as well as environmental law will reduce the burden on the administration.
Eligibility Criteria Startup India Registration
Ensure your company qualifies for below eligibility criteria while registering:
- The age of a business entity, should not be more than ten years
- The Annual turnover, should not be more than INR 100 crore.
- Innovation and Scalability: The business must work towards innovation, development, or improvement of products/services and must have high growth potential.
- Legal Entity: Must be a private limited company, a registered partnership firm, or a limited liability partnership (LLP).
Steps to Complete Startup India Registration
Here’s a step-by-step guide to help you through the process:
- Incorporate Your Business
The first step is to legally form your business. You can choose one of these alternatives such as a private limited company LLP or a firm of partners. Proceed with the Company Registration process to the Ministry of Corporate Affairs (MCA) by filing all relevant documents, and also through a Memorandum of Association (MOA) and Articles of Association (AOA), wherein after that, you would receive a Certificate of Incorporation.
2. Create a Startup India Account
Visit the official Startup India Scheme portal and create an account. Fill in details like your business name, incorporation date, and sector. Upload your Certificate of Incorporation, PAN card, and other relevant documents.
3. Obtain a DPIIT Recognition Certificate
DPIIT recognition is compulsory. Login to the Startup India portal, click on “Get Recognized,” and fill in the required details about your business model, innovation, and scalability. Supporting documents like a pitch deck or proof of funding may be uploaded, if applicable.
4. Register for IPR Benefits
Fast-tracking of trademark registration and patents is an additional benefit. Get your IPR application through the portal for reduced filing charges, which comes up to a deduction of 50%.
5. Benefit from Tax Relaxations
Your startup’s identification by DPIIT will provide access to exemptions for tax, covered under sections 80-IAC and Section 56. Present Form 1 along with a certificate of incorporation, financial statement, and declaration on the innovation factor.
6. Seek Other Benefits
Utilize government programs in terms of finance, mentorship, and networking through accelerator programs and competitions offered on the portal.
Key Documents Needed for Startup India Registration
- Incorporation Certificate
- PAN card of the company
- Aadhaar and PAN cards of the founders
- Business pitch deck or innovation-proof
- Financial statements
- IPR application details for Trademark Registration or patents
Common Issues in Startup India Registration
- Incomplete or Incorrect Documentation: This can result in a delay.
- Unclear Business Model: Fails to communicate innovation and scalability.
- Delayed Compliance: Missed deadlines for ITR Filing and compliance reports.
- Issues with IPR Protection: Missing Trademark and patents before time.
Dos for Effective Registration
- Ensure the eligibility criteria for the business are fulfilled.
- All documents need to be maintained and authenticated.
- Get professional help in legal and financial matters.
- Maintain records and filings updated to keep compliance.
- Keep abreast of new benefits under the Startup India Scheme.
Conclusion
Registering under the Startup India Scheme is a game-changer for budding entrepreneurs. From tax benefits and simplified Company Registration to fast-tracked Trademark and compliance ease, the scheme offers a plethora of opportunities. Completing your Startup India Registration ensures you’re set to capitalize on the resources and incentives provided by the government.