STARTUP INDIA REGISTRATION PROCEDURE

What is a startup?
A startup is a newly established business, usually small, started by 1 or a
group of individuals. What differentiates it from other new businesses is
that a startup offers a new product or service that is not being given
elsewhere in the same way. The keyword is “innovation”. The business
either develops a new product/ service or redevelops a current
product/service into something better.
What is Startup India?
Startups are becoming very popular in India. In order to develop Indian
economy and attract talented entrepreneurs, the Government of India, has
started and promoted Startup India initiative to recognize and promote
startups.
HOW TO REGISTER YOUR STARTUP WITH STARTUP INDIA?
Step 1: Incorporate your business
Registerthe business as a Private Limited Companyor a Partnership firm or
a Limited Liability Partnership. All the normal procedures for registration
of any business like obtaining the certificate of Incorporation/Partnership
registration, PAN, and other required compliances needs to be followed.
Step 2: Register with Startup India
Create a profile on Startup India website. Once the profile is created on the
website, startups can apply for various accelerations,
incubator/mentorship programmes and other challenges on the website
along with getting access to resources like Learning and Development
Program, Government Schemes, State Polices for Startups and pro-bono
services.
Step 3: Get DPIIT Recognition
The next step after creating the profile on the Startup India Website is to
avail Department for Promotion of Industry and Internal Trade (DPIIT)
Recognition. This recognition helps the startups to avail benefits like access
to high quality intellectual Property services and resources, relaxation in
public procurement norms, self-certification under labour and environment
laws, easy winding of company, access to Fund of Funds, tax exemption for
3 consecutive years and tax exemption on investment above fair market
value.
Step 4: Recognition Application
Give details correctly, fill up the ‘Startup Recognition Form’ and ‘Submit’
the Application.
Step 5: Documents to be uploaded for Registration
i. Incorporation/Registration Certificate of your startup
ii. Details of the Directors
iii. Proof of concept like pitch deck/website link/video (in case of a
validation/ early traction/scaling stage startup)
iv. Patent and trademark details (Optional)
v. PAN Number
Step 6: Immediately get recognition number
Once the Application is successfully submitted a recognition number is
generated. The certificate of recognition will be issued after the
examination of all the documents.
However, be careful while uploading the documents. If on subsequent
verification, it is found to be obtained that the required document is not
uploaded/wrong document uploaded or a forged document has been
uploaded then you shall be liable to a fine of 50% of the paid-up capital of
the startup with a minimum fine of Rs. 25,000/-
FAQs ON STARTUP INDIA REGISTRATION:
Who can register with startup India?
An entity incorporated as a Private Limited Company, Partnership Firm or
a Limited Liability Partnership can register themselves under the startup
India scheme. The annual turnover of these business entities should not
exceed 100 crores, and they should have been in existence for up to ten
years from the date of its incorporation/ registration. Such an entity should
be working towards innovation, development or improvement of products
or services or processes.
What are the benefits of signing up with startup India?
There are a number of benefits startups receive by the Startup India
Scheme. Nevertheless, in order to avail these benefits, an entity is needed
to be set up by the DPIIT as a startup.
Startups are allowed to self-certify their compliance for six labour laws and
three environment laws. This is allowed for a total period of five years
from the date of incorporation/registration of the entity. Startups are
allowed a three-year tax exemption and the best intellectual property
services and resources solely built to help startups protect and
commercialize their IPRs.
What is the difference between an accelerator and an incubator?
Startup incubators are typically institutions that help entrepreneurs by
developing their business, especially in the initial stages. Incubation
function is usually carried out by institutions who have experience in the
business and the tech world.
Startup accelerators support early-stage, growth-driven companies. These
programmes usually have a timeframe in which individual companies
spend anywhere between a few weeks and a few months working with a
group of mentors who are educated and may also provide financial help.
For how long is a company recognized as a startup?
Any business entity that has completed 10 years from the date of its
incorporation/registration, and has exceeded the previous year’s turnover
of 100 crores shall stop to be a startup on completion of 10 years from the
date of its registration/incorporation.
How do I know my registration is complete?
Once the application is complete, and the startup gets recognized, you will
receive a system-generated certificate of recognition. You will be able to
download this certificate from the Startup India portal.
DETAILS OF ENTITY:
ABOUT START-UP:
1. Logo: Company’s Logo

2. Stage: Ideation/Validation/Early Traction/Scaling

(Ideation: You have an idea for a product or a service;

Validation: You have built Minimum Viable Product (MVP);

Early Traction: You have acquired customers, generating revenue.

Scaling: You are generating sustainable profits)

3. Brief: Description about stage and Justification of the Product –

Innovation should exist.

4. Investment: Funded/Bootstrapped

5. No. of Employees: Details of employees (including founders)

 6. Is the startup creating an innovative product / service / process or
improving an existing product / service / process: submit a brief note
supporting the options chosen under this stage for innovation,
improvement and scalability.

7. Is the startup creating a scalable business model with high

potential of employment generation or wealth creation:
Employment generation/Wealth creation/both with a brief note

8. Has your startup received any funding? – Yes / No; if Yes – Attach
Proof

9. What is the problem the startup is solving? Provide Details

10.How does your startup propose to solve this problem?Provide

Details

11.What is the uniqueness of your solution?Provide Details

12.How does your startup generate revenue? Provide Details

13. Details of Website of the Company: Provide Details

BENEFITS OF STARTUP INDIA SCHEME

a. Self-Certification under Labor and Environmental Laws.
b. Tax Exemption for Three Years.
c. Tax Exemption on Investment above Fair Market Value.
d. Easy Winding Up of Company.
e. Startup Patent Application and IPR Protection.
f. Relaxation in Public Procurement Norms.
g. SIDBI Fund of Funds.

*********