Tuesday, July 23, 2024
Tuesday, July 23, 2024

Benefits of Registering Your Business Under Startup India

by Swati Raghuwanshi
Benefits of Registering Your Business Under Startup India

The promotion of any business plays a vital role in gaining profits and it’s better reach towards customers and the government of India initiated Startup India to support and promote entrepreneurship and further innovations in the country. This was initiated in January 2016 to create an ecosystem to assist further and support the startups in India and make India a hub for innovation towards the world. Any business that registers under the Startup India initiative tends to receive a wide range of benefits that further help to support and grow the business in India, let us understand the benefits provided under this initiative.

Start-up India Registration to Boost your Start-up’s Growth

It is absolutely right that Start-up India registration can boost one’s start-up growth as it provides various benefits to the registered start-ups and can accelerate its growth. The registered start-ups gain benefits in the following ways:

Acknowledgement and Clarity

Getting registered by the Start-up India program gives recognition and acknowledgement by the Government of India. This acknowledgement can enhance your reliability and be noticeable in the market, inviting probable investors and customers.

Financial and Access to Funds

Those Startups that are registered under this program are entitled to a number of grants and funding schemes offered by the government. This makes it easier for Startups as it provides the necessary funding for growth, exploration and evolution.

Resource Access and Networking

The Start-up India program provides access to a large network of advisers, entrepreneurs and industrial experts which provides them with guidance, support and opportunities in those networks which helps in the development of their start-ups.

Taxation Benefits

Various taxation benefits are availed to the registered Start-ups which include tax exoneration for the first three successive years and profitable tax exemption. These taxation benefits gradually reduce the financial burden during the initial year of the start-up.

Legalized Support and IP Protection

Challenges related to IP(Intellectual Property) are often faced by Start-ups in their initial years. Thus, the Start-up India program provides legal support and assistance in IP Protection-related challenges and protects the creative ideas and by-products of the start-ups.

Key Benefits of Startup India Registration in India

Some of the key benefits or we can say advantages of startup India registration are:  

Financial Benefits

The business that registers under Startup India benefits from tax exemptions for a period of three years out of 10 years of incorporation. These startups are even further given exemptions from the capital gains that are made upon the investment of funds which is recognised by the said government. The investments which are made by the investors in the said business will also be exempted from the angel tax.

Support from Government Funds

The startup business can get access to the funds from the fund of Rs. 10,000 crore that is managed by the Small Industries Development Bank of India and is also given opportunities to participate in the government tenders with the exemption from prior experience criteria.

Compliance

Startups majorly benefit from the regulations and the procedures which certainly include the certification and other laws in relation to the environment. Because of ease of compliance, the startups can even exit or cease their business from operation within 90 days by the application of solvency in compliance with the IBC.

IPR (Intellectual Property Rights)

The applications include fast-track patent applications for the registration of patent applications and are also eligible to receive rebates of 80% rebate on the filing of patents including assistance for further filing of patents and trademarks.

Partnership Among Industries

The introduction of various incubation programs also helps and supports the incubators all across India and any collaboration would also promote and aid the business.

Networking Operations

The connection with various stakeholders further helps improve the startup business through the start-up India hub. Various startups in India get opportunities for the startups of international exposure which are done under various programs and participation which is certainly made under various events.

Benefits of Regulations

A single window clearance is further provided towards the regulations made under filings and further helps to comply with various legal requirements. They can also benefit from the norms and exemptions that are only made during the government process.

Guarantee of Credit

The benefit of credits which are guaranteed during the startups further helps to apply for collateral-free loans and further helps to reduce the risk for the lender and ease access towards credits.

Guidance and Assistance

The major benefit of the startup is to get assistance for the promotion of business under various programs under the said initiative.

How to Register Start-up India Online?

The Start-up India registration is an online process of 7 steps which are:

Incorporating Business

At first, one must incorporate their business as a Private Company, a Limited Liability Partnership or a Partnership Firm. Normal procedures like submitting the application form and obtaining the Incorporation Certificate or the Partnership registration.

Registering with Start-up India

The next step is the registration of the start-up in the Start-up India website which is entirely an online and simple process. This requires details like your name, email ID, mobile number and password.

Getting the DPIIT Recognition

After the profile creation on the website, the next step is obtaining recognition by the Department of Industry and Internal Trade (DPIIT) which helps in earning benefits like access to top-grade trademark services, tax benefits, etc.

Recognition of Application

On the Recognition form, one needs to fill in details like start-up activities, entity details, details about the representative of the start-up and self-certification.

Documents Needed for Registration

The documents required for registration are the Registration Certificate of the start-up, proof of funding, authorisation letter belonging to the authorized representative of the company, proof of ideas like website link, trademark and patent details, awards and certificates of recognition(if any) and PAN number.

Recognition Number is Obtained

A recognition number for the start-up is obtained after the completion of the registration process.  This certificate is issued after the examination of the documents which is done in two days after the submission of the online details.

Conclusion

The initiative of start-up India has made a major contribution towards the growth of the economy and the creation of jobs as of which there are thousands of startups registered under this initiative as it fosters the culture and generates employment for many. This has laid a foundation towards a vibrant ecosystem as it has significantly contributed towards the growth of the economy which will further enhance the economy of the nation.

FAQs

  1. What do you understand about start-up India?

The government of India initiated Startup India to assist further and support the startups in India and make India a hub for innovation towards the world.

  1. How does a business get to benefit financially from start-up India?

Those Startups that are registered under this program are entitled to several grants and funding schemes offered by the government. This makes it easier for Startups as it provides the necessary funding for growth, exploration and evolution.

  1. Does start-up India provide any exceptions towards tax?

Various taxation benefits are availed to the registered Start-ups which include tax exoneration for the first three successive years and profitable tax exemption. These taxation benefits gradually reduce the financial burden during the initial year of the start-up.

  1. How start-up India initiative eases up regulations?

A single window clearance is further provided towards the regulations made under filings and further helps to comply with various legal requirements. They can also benefit from the norms and exemptions that are only made during the government process.

  1. What is the role of the government in start-up India?

The startup business can get access to the funds from the fund of Rs. 10,000 crore that is managed by the Small Industries Development Bank of India and is also given opportunities to participate in the government tenders with the exemption from prior experience criteria.

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