How to register Startups in India?

A Start up is a small newly incorporated business which is started by one or a group of different individuals. A Start up generally try to offer a range of new products or service which is not provided anywhere else in the same way by any other new ventures or businesses. It can be best described as innovation. The start up either try to develop a new product or service or redevelops an existing product into something better.
In India, the Government of India under the leadership of Prime Minister Narendra Modi initiated the Startup India Scheme which aims to support and encourage the growth of startups in India along with the registration of Startups.
This scheme provides multiple benefits to the startups which take register under it. Further, it helps to develop Indian economy and create job opportunities in the country.

Eligibility of Registration under Startup India Scheme

Before a startup proceed for registration under Startup India Scheme, it must check the following eligibility criteria:

• Registered as a Company/LLP/Partnership Firm
  The Startup must be registered either as:
  • A Private Limited Company under the Companies Act, 2013
  • Partnership Firm under Indian Partnership Act, 1932
  • A Limited Liability Partnership (LLP) under Limited Liability Partnership Act, 2008
  • Limit of Turnover

The business which wants to register as a Startup must have a Change turnover to less than 100 crore per year

• Not more than 5 years old to 10 years old
  The age of the business must not be more than 5 years from the date of its registration either as Private Limited Company, Partnership Firm or LLP.

• A Complete New Business Entity
  The business must be a new business entity and should have not been created as a result of restructuring or merger with any other existing business

• Involvement in innovation or development of new products
  The proposed startup must be involved in innovating and developing new products, processes, services or improving an existing one. Wealth creation and employment can also be considered as valid points.

• A Certificate from DIPP
  It is compulsory to obtain a certificate from Department of Industrial Policy and Formation (DIPP) to certify regarding the innovative friendly business of the proposed startup.

Advantages of Startup Registration

Under the scheme of Startup India, Indian Government offers numerous benefits which are as follows:

• A Startup once registered will get income tax exemptions for three years
• Startups are provided a rebate of at least 80% when they file for patent application and a rebate of 50% on trademark filings.
• Startups are eligible to get the benefit of self certification of compliance with environmental laws and non labour laws
• Startup India scheme provides recognition and support to new startups and help them to compete with established and already existing businesses.

Process of Startup Registration

An organization who wish to register as a startup needs to register under Startup India Scheme by taking the following steps:

Step 1 : Business Registration
The very first step before you proceed to register as a Startup needs to register itself as a Private Limited Company (interlink), or LLP (interlink) or a Partnership Firm (interlink).

Step 2: Registration with Startup India
Now you are required to register yourself on the Startup India through the official website of Startup India which is simple and a complete online process. There, you need to fill up the form and the details of your business along with the required documents.

Step 3: Upload Letter of Recommendation
Now along with Registration Form you need to upload a letter of recommendation/support which can be:

• A Letter from an incubator established at a post graduate college in India, or
• A Funding letter of not less than 20% in equity by any angel fund investor/Private Equity Fund/Incubation etc. Registered with SEBI, or
• Letter of Funding from State or Central Government, or
• A patent filed and already published in the Patent Journal of Indian Patent Office

Step 4: Upload Incorporation/Registration Certificate
You need to upload the Certificate of Incorporation of your Company/LLP issued by Ministry of Corporate Affairs or Registration Certificate in case of Partnership Firm

Step 5: Other Important details regarding Startup
You need to provide a brief description of your startup mentioning its business activities like product/services or both. The startup also needs to prove that the business is innovative.

Step 6: Providing answer whether tax benefits are required or not
In this step, you need to answer whether you wish to avail tax benefits or not as the government is exempting the startups from the burden of income tax for the first 3 years. Post this, you need to certify further necessary things.

Step 7: Receiving Recognition Number
After completing all the above steps, you will get a recognition number for your startup after due verification of all your documents.

Takeaway

In the current times, it is very easy to register your business as a startup due to the various initiatives of government. We at Legal Window, help you to from start to end right from incorporating your company to registering it as a startup. Try visiting our official website for more startup services.