Start Up India Registration

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Startup India Scheme

        The Startup India Scheme is an initiative of the Government of India in 2016. The primary objective of Startup India is the promotion of startups, generation of employment, and wealth creation. The Startup India has initiated several programs for building a robust startup ecosystem and transforming India into a country of job creators instead of job seekers. These programs are managed by the Department for Industrial Policy and Promotion (DPIIT).

BENEFITS OF STARTUP INDIA SCHEME

Eligibility to apply for 3 years Income Tax exemption

Eligible Startups can be exempted from paying income tax for 3 consecutive financial years out of their first ten years since incorporation.

Eligibility to avail funding from Rs. 10,000 crore FOF scheme

Under Funds of Funds for Startups Scheme already more than Rs. 1600 crore is invested in 251 Startups.You may be one of the Startups for the remaining Rs. 8,400 crore corpus.

Priority Govt. Tender and Procurement Scheme

Exemption from prior experience or turnover and Security deposit for filing tenders
Opportunity to list Startup products on Government e-marketplace for market visibility.

No Angel Tax up to Rs. 25 crore funding

Investments into eligible Startups by Accredited Investors, Non-Residents, AIFs, closely held listed companies may also be exempted under Section 56 (2) (VIIB) of Income Tax Act, 1961.

Finally, Labour Inspector Raj Gone for Startups

No more Labour Law Inspection fear for Startups. Recognised Startups can self manage their PF, ESIC, Gratuity and Environmental Law Compliance through simple self-declaration.

50% discount in Trademark & 80% rebate in Patents fees

Fast tracking of Startup Patent application, Upfront 50% discount on Trademark fees, 80% Rebate on Patent filing fees.

Now Loan from Foreign Investors (ECB) is a cake walk

Recognised Startups can avail loans from Non-Resident Investors (External Commercial Borrowings-ECB) upto $ 3 million every financial year through simple RBI compliance mechanism.

Private Limited can take deposit from its members

For a period of five years from the date of its incorporation under the Companies (Acceptance of Deposits) Rules, 2014.

Eligibility for availing State Govt. Incentives

Like Maharashtra State GST rebate scheme, Many other Loan and Rebate Incentives are announced by different State Governments of India.

ELIGIBILITY FOR STARTUP INDIA REGISTRATION

DOCUMENTS REQUIREMENTS FOR STARTUP INDIA REGISTRATION

Frequently Asked Questions(FAQ’s)

Who can register with startup India?

An entity incorporated as a Private Limited Company, Partnership Firm or a Limited Liability Partnership can register themselves under the startup India scheme. The annual turnover of these business entities should not exceed Rs.100 crores, and they should have been in existence for up to ten years from the date of its incorporation/ registration. Such an entity should be working towards innovation, development or improvement of products or services or processes.

What are the benefits of signing up with startup India?

There are a number of benefits startups receive under the Startup India Initiative. Nevertheless, in order to avail of these benefits, an entity is needed to be recognised by the DPIIT as a startup. Startups are allowed to self certify their compliance with six labour laws and three environment laws. This is allowed for a total period of five years from the date of incorporation/registration of the entity. Startups are allowed a three-year tax exemption and the best intellectual property services and resources solely built to help startups protect and commercialise their IPRs.

What kind of business structure should I choose for my startup?

The most preferred business structures for a startup are Private Limited companies and LLPs. A Private Limited company is legally recognized and generally favoured by investors. However, it has stricter compliance and may have a higher cost of incorporation.
Whereas incorporation cost is lower for LLPs and they tend to have relaxed compliance in comparison to the Private Limited Companies. In addition to that, LLPs have limited liabilities and are equally recognised by investors and all over the world.

What can I do to attract investors to a start-up?

To attract investors, not only do you need a stellar product with a scalable model, but you also need visibility. Make sure that your product receives healthy engagement and traction. You’ll need to register your startup on startup India and proactively seek out investors. Make sure you are able to effectively communicate your business idea to the investor and the sustainability of your business model.

Can a foreign company register under the Startup India hub?

Any entity that has at least one registered office in India can register itself on the hub, since the location preferences, for the time being, are only created for Indian states. However, soon the government hopes to start registrations for stakeholders from the global ecosystem too.

What is the difference between an accelerator and an incubator?

Startup incubators are typically institutions that help entrepreneurs by developing their business, especially in the initial stages. The incubation function is usually carried out by institutions that have experience in the business and the tech world.
Startup accelerators support early-stage, growth-driven companies. These programmes usually have a timeframe in which individual companies spend anywhere between a few weeks and a few months working with a group of mentors who are educated and may also provide financial help.

For how long is a company recognised as a startup?

Any business entity that has completed 10 years from the date of its incorporation/registration, and has exceeded the previous years turnover of Rs.100 crores shall stop being a startup on completion of 10 years from the date of its registration/incorporation.

Can an existing entity register itself as a “Startup” on the Startup India Portal?

Yes, as per the law an existing entity can register itself as a startup, provided that it meets the prescribed criteria for a startup. They will also be able to avail various tax and IPR benefits that are available to startups. The criteria are the same as those mentioned in the article above.

How do I know my registration is complete?

Once the application is complete, and the startup gets recognised, you will receive a system-generated certificate of recognition. You will be able to download this certificate from the Startup India portal.