In order to develop Indian economy and attract talented entrepreneurs, the Government of India, under the leadership of PM Narendra Modi, has started the Startup India initiative to recognize,promote and support startups.
Incorporate your business
Incorporate your business as a Private Limited Company or a Partnership firm or a Limited Liability Partnership. You have to follow the normal procedures for registration of any business like obtaining the certificate of Incorporation/Partnership registration, PAN, and other required compliances.
Register with Startup India
The business must be registered as a startup. All you need to do is log on to the Startup India website and fill up the form with details of your business and upload certain documents.
Documents to be uploaded (in PDF format only)
a) A letter of recommendation/support
A letter of recommendation must be submitted along with the registration form. Any of the following will be valid-
A recommendation (regarding innovative nature of business) from an Incubator established in a post-graduate college in India, in a format specified by the Department of Industrial Policy and Promotion (DIPP); OR
A letter of support by an incubator, which is funded (in relation to the project) by Government of India as part of any specified scheme to promote innovation; OR
A letter of recommendation (regarding innovative nature of business), from an Incubator, recognized by the Government of India in DIPP specified format; OR
A letter of funding of not less than 20% in equity, by any Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel Network, duly registered with SEBI that endorses innovative nature of the business; OR
A letter of funding by Government of India or any State Government as part of any specified scheme to promote innovation ;OR
A patent filed and published in the Journal by the Indian Patent Office in areas affiliated with the nature of the business being promoted.
b) You need to upload the certificate of incorporation of your company/LLP (Registration Certificate in case of partnership)
c) A brief description of the innovative nature of your products/services.
Answer whether you would like to avail tax benefits
Startups are exempted from income tax for 3 years. Inorder to avail these benefits, they must be certified by the Inter-Ministerial Board (IMB). Start-ups recognized by DIPP, Govt. of India can now directly avail IPR related benefits without requiring any additional certification from IMB.
Self-certify that you satisfy the following conditions
You must register your new company as a Private Limited Company, Partnership firm or a Limited Liability Partnership
Your business must be incorporated/registered in India, not before 5 years.
Turnover must be less than 25 crores per year.
Innovation is a must– the business must be working towards innovating something new or significantly improving the existing used technology.
Your business must not be as a result of splitting up or reconstruction of an existing business.
Get a recognition number
On applying you will immediately get a recognition number for your startup. The certificate of recognition will be issued after the examination of all your documents.
However, be careful while uploading the documents. If on subsequent verification, it is found to be obtained that the required document is not uploaded/wrong document uploaded or a forged document has been uploaded then you shall be liable to a fine of 50% of your paid-up capital of the startup with a minimum fine of Rs. 25,000.
Patents, trademarks and/or design registration
If you need a patent for your innovation or a trademark for your business, you can easily approach any from the list of facilitators issued by the government. You will need to bear only the statutory fees thus getting an 80% reduction in fees.
In order to provide funding support, Government has set up a fund with an initial corpus of INR 2,500 crore and a total corpus of INR 10,000 crore over a period 4 years (i.e. INR 2,500 crore per year). The Fund is in the nature of Fund of Funds, which means that it will not invest directly into Startups, but shall participate in the capital of SEBI registered Venture Funds.
Need personal assistance in dealing with GST Registration & filing? Get in touch with ADCA - One of the best ca firms in bangalore.