Startup India Registration

Startup India Registration - Process, Procedure, Document Required, Fees, Eligibility, Duration

Eligibility criteria for the Startup India certificate 

• A Private Limited Company, Registered Partnership Firm, or a Limited Liability Partnership.
• The company should be newly formed, it should not be formed by splitting up or reconstructing an existing business. 
• Its turnover should be less than INR 100 crores in any of the previous financial years.
• An entity is regarded as a startup for up to 10 years from the date of its inception.
• The business concept should drive towards innovation or bringing improvement of any existing products, services, and processes. 
• It should have the prospects of creating employment.

Who is not eligible for Startup India recognition? 

• Sole Proprietorship
• The company was established by the notary partnership deed 
• Once annual turnover exceeds INR 100 crores
• The company is older than 10 years

Advantages of Startup India Registration 

1- Tax Exemption

A company registered under the Startup India Scheme is eligible to apply for an exemption of income tax under section 80 IAC of the Income Tax Act. It can avail tax exemption for 3 consecutive financial years out of the first 10 years. 

2- Angel Tax Exemption 

A Startup with the certification can avail of tax exemption benefits from the funds received as angel investment. The exemption is provided if the total amount of paid-up share capital and share premium doesn’t surpass INR 25 Crore after the proposed issue of shares. 

3- Rebate in Trademark and Patent Application Fees 

The Startup registered under this scheme is entitled to a rebate on the government fees for filing a trademark application. They can also get an 80% rebate on Patent applications and the benefits of the fast-tracking applications.

4- Self-Certification 

The Startup can self-certify its compliance under 6 Labour Laws and 3 Environmental Laws, for a period of 05 years from the date of its inception. 

5- Government Tenders 

Registering an entity under the DIPP recognition scheme assists the Startups to apply for Government tenders. Startups recognized under DIPP are exempted from giving the Earnest Money Deposit (EMD) while filing government tenders.

6- Interaction Platform for Startups 

Networking is an important key for any entrepreneur to get recognition in the market. After registering under the DIPP scheme, the startup gets a platform to meet other startups at different fests and summits organized by the Government, and benefit from the wider exposure.

7- Faster Exit 

The startup entities registered under the Ministry of Corporate Affairs can exit on a fast-track basis. Under the Insolvency and Bankruptcy Code, 2016, Startups with a simple debt structure or that meet particular income specified criteria can be wound up within 90 days of applying for bankruptcy.