Start up India Registration

To get recognized as a Start-up under the Startup India Scheme, a business entity must fulfill the following conditions:

• The business must be incorporated as a Private Limited Company or LLP or Partnership firm for  a period up to 10 years from the date of incorporation
• Turnover of the entity for any of the financial years since incorporation has not exceeded Rs. 100 Crores
• The entity is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential employment generation or wealth creation
  Provided that an entity formed by splitting up or reconstruction of an existing business shall not be considered as a “Startup”

Yes, an existing entity that meets the criteria as indicated in definition of startup can register itself on startup india portal

Yes, Partnership firm is eligible for all the benefits except tax exemptions available to startups recognized by DIPP.

DIPP recognition for startups is different from registration on Startup India website. To avail the benefits of Startup India Scheme, the entity must be registered under Startup India Scheme provided by DIPP. Only creating the account on Startup India website does not amount to recognition by DIPP.

Yes

Income tax Exemption

After obtaining the recognition as a “Startup” from DIPP, a business entity (Pvt. Ltd. Co./LLP) incorporated on or after 1-4-2016 but before 1-04-2021 can apply for tax exemptions u/s 80IAC of Income Tax Act. After review of application and documents, if deem fit, the department will issue a Tax Exemption Certificate to the Start-up which will allow tax exemption for 3 consecutive financial years out of first 10 years from the date of incorporation.

Angel Tax Exemption

The startup (Pvt. Ltd. Co.) recognized by DIPP shall be eligible to avail angel tax benefits (tax on share premium) from the funds received as angel investment u/s 56(2)(viib) of Income Tax Act. However, such exemption shall be allowed for investment made by angel investors up to an aggregate investment of Rs. 25 Crores.

Self Certification

Startups (Pvt. Ltd. Co./LLP/Partnership) recognized by DIPP will be permitted to self-certify compliance with 6 Labour Laws and 3 Environmental Laws for 5 years from the date of incorporation. In case of Labour Laws, no inspection shall be conducted for a period of such 5 years.

Rebates in patent filing fees

Startups recognized by DIPP shall enjoy a rebate of 80% on patent applications filed by them. Further, patents filed by such startups shall be examined on a fast track basis. The Government shall bear the entire fees of Facilitators for any number of Patents, Trademarks or Designs filed by start-up. Hence Startups will have to bear the cost of Statutory Fees only.

Easy Winding Up

Startup entities registered with MCA i.e. Pvt. Ltd. Co./ LLP shall be wound up on a fast track basis within 90 days of filing an application for insolvency.

Easy access to Government Tenders

Requirements of Government tenders related to minimum experience/ turnover shall not apply to a recognized startup. Further, they shall be exempted from submitting Earnest Money Deposit (EMD) while filing government tenders.

Fund of Funds for startups

DIPP has proposed to provide Rs. 10,000 crore for startups through fund of funds initiative. SIDBI shall provide funds to startups approved by Implementing Agencies.

Opportunity to list product on Government e-marketplace

Startups recognized under DIPP can register on Government e-Marketplace as a seller and sell their products and services directly to Government Entities.

STEP BY STEP PROCEDURE OF START UP REGISTRATION

Step-I :

Incorporate the business entity as a Private Limited Company/ LLP/ Partnership Firm following the prescribed procedures in respective laws.

Step-II:

Obtain PAN and MSME Registration for the business;

Step-III:

Login to website at www.startupindia.gov.in and file application with supporting documents. (Refer FAQs for supporting documents)

Step-IV:

Answer whether you would like to avail tax benefits

Startups are exempted from Income tax for 3 years but to avail the benefits, they must be certified by Inter Ministerial Board (IMB). However, Startups recognized by DIPP can now directly avail IPR related benefits without additional certification from IMB.

Step-V:

Self certification for the following conditions:

1. The Startup must be registered as a Pvt. Ltd. Co./LLP/Partnership Firm;
2. The business must not be older than 5 years;
3. The turnover of business must be less than Rs. 100 Crores per annum;
4. Innovation is a must for the business- It should be working towards innovating something new or towards improving the existing technology;
5. The new business must not be formed after splitting up or reconstruction of any existing business;

Step-VI:

Immediately get recognition number

On applying you will immediately get a recognition number for your startup. The certificate of recognition will be issued after the examination of all your documents.

However, in case the required document uploaded/wrong document uploaded or a forged document has been uploaded then you shall be liable to a fine of 50% of your paid-up capital of the startup with a minimum fine of Rs. 25,000.