Overview of Startup-India Registration

India has become the hub of the 'Start-up' ecosystem in the world. Presently, it has the 3^rd rank with 90,000 'Start-Ups' and 107 unicorn companies worth  $30 billion. The Indian government has begun and promoted the Startup India Initiative to help aspiring entrepreneurs. There are several benefits of the Startup India Scheme.

Self Recognition

After having the Startup India Registration, it becomes an official recognition for Startups by the Government. The entity will be allowed to self-certify compliance and can enhance its credibility as well as reputation in the marketplace.

Start-Up IPR Application

The DPIIT recognized startups are eligible to pay only about 80% of its total fees on Patents, copyrights, trademark, and design filing. There are also the benefits of a fast-track process for application filing as well as access to support and assistance in managing Intellectual Property Rights.

Tax Benefits/Exemptions

After obtaining the Certificate of Recognition,  any startup can have the benefit of Tax exemption under section 80 IAC of the Income Tax Act. Startups that have Startup India registration can access  various tax benefits and exemptions. These include a tax exemption for a period of 3 consecutive years out of the first 10 years of its business operation. There is also a reduced tax rate on profits and also an exemption from the capital gains tax on sale of specified assets.

Easy Winding up Process

Startups registered with Startup India have an option of a faster and simplified process for winding-up for the company. It helps in reducing the time and effort for closing down the startup in case  it fails to succeed.

Funding Support & Incentives

Startups having Startup India registration have access to several government funding schemes and incentives. These include the Credit Guarantee Fund for Startups (CGFS) and the Fund of Funds for Startups (FFS). This can facilitate easier access to get capital and loans for startups.

Networking & Collaboration Opportunities

With the Startup India registration various opportunities for networking and collaboration with other startups, industry experts, mentors, and investors becomes accessible. Various events, programs and summits can help startups in gaining mentorship, valuable insights, and potential funding.

Access to Government Tenders

Startups having Startup India registration become eligible to participate in government tenders, which are helpful in potential business growth with government departments and agencies.

Regulatory Relaxations

Startup India registration can benefit from certain regulatory relaxations and exemptions such as self-certification compliance for environmental and labour laws. These simplifications of regulations are helpful to ease of business operations.

Eligibility to obtain Startup India Registration

• Company Age: The minimum period of existence and operations of the entity or a company must not be exceeding 10 years from the Date of its Incorporation.
• Type of Entity: It can be incorporated as a Registered Partnership Firm, or as a Private Limited Company, or as a Limited Liability Partnership.
• Annual Turnover: The annual turnover must not be exceeding Rs. 100 crore for any of the financial years since the time of its Incorporation.
• Original Entity: It is compulsory that an entity must not have been formed by splitting up with another entity or by reconstructing an already existing business or an entity.
• Innovative & Scalable: The idea of obtaining Startup India registration is for growth development or improvement of a product, process or service. They further work towards having a scalable business model with high potential for creation of profit and employment.
• DPIIT Certificate: For Startup India registration a DPIIT (Department for Promotion of Industry and Internal Trade) Certificate has to be obtained. This department comes under the Ministry of Commerce and Industry.

• Identity Proof such as Aadhar Card, Pan Card, Voter Id Card etc
• Address Proof such as water bill, electricity bill etc
• Certificate of Incorporation/Partnership Deed
• MOA (Memorandum of Association) and AOA (Articles of Association) in case of Company and Partnership deed in case of Partnership Firm
• List of designated Partners or Directors
• List of Investors, if any
• Details related to amount of investment
• Details of Intellectual Property Rights such as patent or trademark registration
• Website Link/ Mobile App Link
• Description of the business such as Business Plan, Growth Plan
• Financial Statement of the entity
• Letter of Recommendation
• Self-Certification

Visit the official website: Visit to the website of Startup India i.e. www.startupindia.gov.in.

Click on "Register" or "Login": If you already have an account, then you can directly log in. Otherwise, click on the "Register" button to create a new account for registration.

Fill in the registration form: Provide the necessary details about your startup, such as the name, industry sector, type of entity, its address, date of its incorporation, etc. One must require to provide the GST (Goods and Services Tax) number and PAN (Permanent Account Number) details.

Self-certification: As part of the registration, you will need to self-certify that your startup meets the eligibility criteria defined by the government. Make sure all the eligibility criteria must be fulfilled before proceeding with the Startup India registration.

Upload the required documents: You will need to upload certain documents as part of the registration process. The documents may include:

• Letter of recommendation
• Brief description of your business
• Certificate of Incorporation
• IPR registration certificate
• Aadhar card of authorised person
• PAN of the entity
• Information of a prior investor in the business

Submit the application: Once all the necessary details are filled and uploaded the required documents then review the information once carefully and after that submit an application.

Recognition/Startup India Certificate: After completing the submission of an application, it will be reviewed by the Startup by the authority. If in case the application meets the required eligibility criteria and all the required information is provided, then you will receive a recognition certificate for your startup. This certificate will now make you eligible for all the benefits and support under the Startup India initiative.

Taxation Benefits under Startup India Scheme

Startups are recognized after having the Startup India registration can avail several benefits, including good tax benefits. Some of the tax benefits available under Startup India Scheme are:

Income Tax Exemption

Startups with Startup India Registration can avail the benefit of income tax exemption for a certain period of time. According to present regulations, a startup is eligible to claim 100% income tax exemption for 3 consecutive years out of its first 10 years of its business operation. However, this particular benefit is subject to specific conditions and criteria set by the government of India.

Capital Gains Tax Exemption

Startups with Startup India Registration can become eligible for exemption from the long-term capital gains tax. This particular exemption applies in accordance with the sale of residential property and investments made in business.

Tax Exemption for Investors

Investors who invest in Startups with Startup India Registration may also get tax benefits. Venture capital funds and angel investors can claim tax exemptions within the provisions mentioned under Section 56 of the Income Tax Act, which exempts them from paying tax upon their investments in startups.

Carry Forward & Set Off of Losses

Startups with Startup India Registration may carry forward their losses for up to 8 years, however, which can be set off against future profits. This helps startups in managing the tax liabilities during the initial years of their business operation.

Startupfino being a startup itself understands the requirement of the process of Startup India Registration. The team of professionals here strives to support the newly emerging businesses without any hassles. Hence, we do our best to complete your startup India registration process with utmost care and responsibility. We have helped startups in getting their recognition with DPIIT, you can be the next!