A startup can be understood as a young company founded by an entrepreneur to develop a unique product or service and sell the same in the market.
Startup India Scheme
The startup India is a type of a scheme which is initiated by the government for the purposes of assisting and promoting the small companies, generating wealth and eliminating unemployment.
What are the key features of Startup India scheme?
Here are the two most exciting features:
The new-entrants are granted for 3 years a tax-holiday
Government has provided funds of Rs. 2500 crore for startups, as well as a guaranteed credit fund of Rs. 500 crore.
What is the eligibility criteria for registration?
Following are the
A startup company to be formed must be a private limited company or a limited liability partnership.
It must be either a new firm or not older than 5 years.
The total turnover of the company should not be exceeding 25 crores.
Approval from the Department of Industrial Policy and Promotion (DIPP) should be obtained by the companies. For the approval of DIPP, the firm should be funded by an Incubation fund, Angel fund or private equity fund.
A patron guarantee from the Indian Patent and Trademark Office is also required.
The firm must provide innovative schemes or products.
Angel fund, Private equity fund, Incubation fund, Accelerators, Angel network must be registered with SEBI.
Startup Registration Procedure in India?
Below are the steps required for the purposes of registering the startup with Startup India:
The first step is to incorporate your business. The normal procedure for registration is followed such as the Certificate of Incorporation / Partnership Registration, along with PAN and other such compliances.
The next stage is to upload the necessary documents as directed on the website such as the recommendation letter, letters of funding, etc. It is, however, important to keep in mind all these documents are compulsory to be uploaded in the PDF format.
The startups have been given exemption from income tax for 3 years but to avail this benefit the startup must be certified by IMB (Inter-Ministerial Board). Those startups are given recognitions by DIPP, the Indian government can now avail benefits directly without certification from IMB.
You also have to self-satisfy certain conditions such as your business is not older than 5 years, annual turnover not exceeding Rs 25 crores etc.
Once you complete the above steps you shall get your startup recognition number immediately. The certificate of registration, however, will be given on a later date once the verification of all the documents is done.+
What happens if a wrong document is uploaded?
You need to be very careful as uploading a wrong or forged document will result in you paying a heavy fine which shall be 50% of your paid-up capital with a minimum fine of Rs 25,000.
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