Starting a business in Indiahas become increasingly popular. The Government of India, under the leadership of PM Narendra Modi, has launched and promoted Startup India initiative to promote India’s economy and attract talented entrepreneurs. lets see steps to register startup
Step 1: Incorporate your company.
Incorporate your business as a Private Limited Company, Partnership firm, or Limited Liability Partnership. Any business must comply with all the normal procedures, such as obtaining a Certificate of Incorporation/Partnership registration, a PAN, and other necessary compliances.
Step 2. Apply for Startup India registration.
A startup company must be registered. You can complete the process online. All you need to do is visit Startup India’s website and fill in the form with information about your business. As the next step, enter the OTP that is sent to your e-mail and other details such as the type of startup, the name and stage of the startup, etc. A Startup India profile is created when these details are entered.
Once the profile is created on the website, startups can apply for various accelerator programs, incubator programs, mentorship programs, and other challenges as well as get access to resources like the Learning and Development Program, Government Schemes, State Policies for Startups, and pro-bono services.
Step 3. Get DPIIT Recognition
Once the profile has been created on the Startup India website, the next step is to obtain recognition from the Department for Promotion of Industry and Internal Trade (DPIIT). With this recognition, startups are given access to the best intellectual property services and resources, relaxation of public procurement norms, self-certification under labor and environmental laws, easy winding up of companies, tax exemption for 3 consecutive years, and exemptions on investments above fair market value.
You can get DPIIT Recognition by clicking on the ‘Get Recognised’ button if you are a new user. Click on the ‘Dashboard button’ and then select ‘DPIIT Recognition’ if you are an existing user.
Step 4. Recognition Application
Select ‘Recognition Application Detail’ from the menu. Under the Registration Details section, click ‘View Details’. Fill out the Startup Recognition Form and click ‘Submit’.
Step 5. Documents for Registration
- Incorporation/Registration Certificate of your startup
- Details of the Directors
- Proof of concept like pitch deck/website link/video (in case of a validation/ early traction/scaling stage startup)
- Patent and trademark details (Optional)
- PAN Number
Step 6. Recognized number
You’re done! The recognition number will appear immediately after you apply. After all your documents have been examined, a certificate of recognition will be issued, usually within two days of submitting the details online.
Upload your documents carefully. Following the verification, if the required document is not uploaded/a mistaken upload is made or a forged document is uploaded, you will be liable to a fine of 50% of your paid-up capital of the startup with a minimum fine of Rs. 25,000.
Step 7. Other Areas
You can easily approach any of the government’s listed facilitators if you need a patent for your invention or a trademark for your business. Only the statutory fees will be charged, so you’ll save 80% on your legal fees.
Funding has been a major challenge for many startups. Entrepreneurs fail to attract investors because of inexperience, security or existing cash flows. In addition, the high-risk nature of startups, as a significant percentage fail to take off, discourages many investors.
The Government has established a fund with an initial corpus of INR 2,500 crore and a total corpus of INR 10,000 crore over the next four years (i.e. INR 2,500 crore per year). As a Fund of Funds, the Fund will not invest directly in Startups, but will participate in the capital of SEBI registered Venture Funds.
Startups can self-certify under employment laws and labour laws, reducing their compliance costs. They are able to reduce regulatory burdens through self-certification, allowing them to concentrate on their core business. For a period of 3 to 5 years from the date of incorporation, startups are allowed to self-certify their compliance with six labour laws and three environment laws.
According to the website of the Central Pollution Control Board, units operating under 36 white category industries do not need environmental clearance for 3 years.
Startups are exempt from income tax for three years. To be eligible for these benefits, they must be certified by the Inter-Ministerial Board (IMB). Startups that were incorporated on or after 1st April 2016 are eligible for the tax exemption.
Removed documents are no longer required.
Startup India has changed its registration process since its inception. Many of the previous requirements have been eliminated now. Many documents that were previously required have been eliminated. There are certain documents that do not need to be filed with the registration:
- Letter of Recommendations
- Letter of funding
- Sanction Letters
- Udyog Aadhar
- MSME Certificate
- GST Certificate
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