Benefits of Startup India Registration
Following are the benefits of Startup India Registration:
Easy Access of Funds:
Rs. 10,000 crores fund is set-up by the Indian Government to provide funds to the startups as Venture Capital. The Government is also giving guarantees to the lenders to encourage banks & other financial institutions to provide Venture Capital.
Tax Savings for Investors:
Individual investing their capital gains in the venture funds set-up by the Government will get exemption from Capital Gains and this will help all the Startups to attract more investors.
Income Tax Exemption:
Eligible startups can be exempted from paying Income Tax for 3 Consecutive F.Y. (Financial Years) out of their first 10 years since Incorporation.
Easily apply for Government Tenders:
Startups in India can easily apply for Government Tenders and they are exempted from the prior experience or turnover criteria applicable for normal companies answering to Government Tenders.
Rebate in Trademark & Patent Filing:
Startups working under Startup India Registration Scheme will get 50% rebate on Trademark Filing and 80% rebate on Patent filing.
Easy Winding Up:
The process of winding up of Company becomes very easy & it takes 90 days to wind up under IBC, 2016.
Eligibility Criteria for the Registration
Following is the eligibility criteria for Startup India Registration or DPIIT Certificate of Recognition:
- The Startup India Registration Certificate or DPIIT Certificate of Recognition is provided for the company which is registered as an LLP, Private Limited Company, or a registered Partnership Firm.
- To get the Registration Certificate, the firm should have an annual turnover of less than Rs. 100 crores for any of the previous Financial Year.
- The entity or company should be working towards improvement/development of a product, service, or process.
- The entity or company should have a scalable business model with high potential for the creation of wealth & employment. The company or firm should have the capability to generate employment or create wealth.
- The period of Company’s operations or existence shouldn’t exceed 10 years from the date of formation.
- To get Startup India Registration Certificate or DPIIT Certificate of Recognition, the company shouldn’t have been registered by splitting up/recreating an already existing entity.
- >Applicants shouldn’t have defaulted with any financial institution in the past.
Who is not eligible for Startup India Registration or Startup India Recognition?
Following is the documents required for Startup India Company Registration:
- CoI or Certificate of Incorporation;
- MoA (Memorandum of Association) & AoA (Articles of Association);
- List of all designated Directors and Partners;
- Contact details of all the Directors or Partners;
- Latest Photos of all the Directors and Partners;
- Details regarding the amount of investment and investors;
- Details of IPR Registration;
- Website or Mobile App link (if any);
- Growth Plan and Business Plan;
- Udyam Registration or MSME Registration;
- Brief write-up on how the business is working towards (innovation in the industry, high potential for wealth creation, potential for employment generation).
Procedure for Indian Subsidiary Registration
Following is the step by step procedure for getting Startup India Registration Certificate:
Step 1: Incorporate Your Company:
First, you have to incorporate your Company in India into a Private Limited Company or Partnership or LLP. You just need to follow the normal procedure which involves filing a form-fitting to get the Registration.
Step 2: Register under Startup India Scheme:
After that, you must register your company or firm under the Startup India Scheme. You have to fill all the vital details in the form which is available on the website of Startup India & then upload some vital documents also.
Step 3: Upload Documents:
You need a Registration Form along with the recommendation letter. You can get anyone’s recommendation letter which is mentioned below:
- A Recommendation Letter from any PG College in India or in a format that is approved by DIPP;
- A Recommendation Letter from an incubator that the Indian Government funds as a part of any specified scheme to promote innovation;
- A letter of funding not less than 20% in equity by an Incubation Fund, or Private Equity Fund, Accelerator, and Angel Fund & which is registered with SEBI that countersign with the innovation nature of the business;
- A recommendation letter by any State Government or the Central Government of India;
- Incorporation Certificate, you need to upload the Certificate of Incorporation of your Company or LLP or a Registration certificate for a Partnership Company & provide a brief description of your business.
Step 4: If you need Tax Exemption then mention it:
After receiving recognition, a Startup has the opportunity to seek Tax exemption under Section 80 IAC of the Income Tax Act. Upon obtaining approval for Tax exemption, the Startup becomes eligible for a tax holiday spanning 3 consecutive financial years within its initial 10 years of incorporation.
Step 5: Get your recognition number:
- For the registration of the application, you will get a Recognition Number. After the Authority goes through all your uploaded documents when you get the Certificate of Incorporation.
- Now enroll your Company into the Startup India Scheme & reap all the benefits which are provided by the Government of India.
