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What is Startup India Registration and how this can benefit your business.

The Startup India Initiative, managed by the Department for Promotion of Industry and Internal Trade (DPIIT), provides a platform for entrepreneurs to get their companies recognized.

Bharat Startup Knowledge Access Registry (BHASKAR) is the recent portal introduced under the Startup India Initiative. It facilitates networking and collaboration among all the stakeholders of the startup ecosystem. 

Moreover, there exists Startup India Seed Fund Scheme (SISFS) to provide seed funding to startups with viable business pitches and one complying with the prerequisites for funding.

It provides financial assistance at various stages of startup development. Besides, other platforms and recognitions under this initiative such as MAARG, National Startup Awards, contribute significantly for boosting startup culture. 

The companies complying with the eligibility criteria are awarded the DPIIT recognition (eligibility criteria are discussed below).

Lots of benefits come to entrepreneurs along with business recognition (to know benefits, scroll below). 

The startups seeking DPIIT recognition should register their business as a private limited company, registered partnership firm, or limited liability partnership (LLP). The certification of incorporation is must.

For DPIIT recognition follow the below-mentioned steps:

For DPIIT recognition follow the below-mentioned steps:

• Visit the website nsws.gov.in,  and sign up to create an investor account
• Move to click Add approvals > Central approvals 
• Add “Registration as a Startup” to your dashboard
• Fill out the application form and submit

After verification of all details, a Startup Recognition Certificate is issued by DPIIT.

What are the benefits of Startup India Registration?

The startups holding DPIIT recognition are eligible for several benefits. They are as follows:

• Tax exemption: One of the most lucrative benefits of Startup India registration is tax exemption. DPIIT recognized startups have chance to avail of tax holidays for any three consecutive financial years during the period of 10 years since its inception. This tax exemption is provided under section 80 IAC of the Income Tax Act. Moreover, there is an opportunity to apply for Angel Tax Exemption (tax on investments above fair market value) under section 56 of the Income Tax Act.
• Easier Compliance based on self-certification: There are total 9 labour and environment laws (6 labor laws and 3 environment laws) that startups can self-certify compliance. This can be done easily through the Startup mobile app. The process of conducting inspections is simplified to make it more friendly for startups. It helps to curb the time-consuming regulatory formalities. As far as labor laws are concerned, no inspection will be conducted during the period of 5 years since its inception. The complaint of violation will be entertained only if the complaint is found to be credible and verifiable. In the case of environmental laws, random inspection is conducted.
• Faster IPR registration: Innovations are provided protection cover through patents. Patents, trademarks, copyrights are categorized as Intellectual Property Rights (IPRs). They are recognized as a tool to enhance business competence domestically and globally. The IPR applications of startups recognized by DPIIT are prioritized through fast-track examination. The startups will be liable to pay statutory fees. The fees of facilitators for advisory services will be borne by the government. Moreover, the startups will be eligible to get 80% rebate in fees. This reduces the financial burden in the initial years of incorporation.
• Relaxed public procurement norms: Government e Marketplace has allowed DPIIT-recognised startups to list themselves as sellers. They are free from norms pertaining to prior experience, prior turnover, and earnest money deposits. Moreover, these startups are given preference for obtaining government tenders.
• Easy exit process: If the operations of startup show the chances of failure, then a simple process to wind up operations has been proposed. It has an option to make an application for winding up. It can wind up operations within 90 days after making this application.

In this way, the startups recognized by DPIIT have government support right from funding to winding up of business operations. 

Also Learn: 7 Proven Strategies for Tax Planning For Corporates

What Are the Eligibility Criteria For Startup India Registration?

The company or firm will be treated as a startup and will become eligible for DPIIT startup recognition if it meets the following requirements:

Age of business: Business should not be more than10 years old from the date of its establishment.

Business incorporation: Only businesses incorporated as a Private Limited Company, a Registered Partnership Firm, or a Limited Liability Partnership are categorized as startups for Startup India Registration.

Sole proprietorships are not eligible for DPIIT startup recognition. However, there is an option for the businesses owned and managed by a single person to incorporate as a “One Person Company (OPC)”. The OPCs can apply for DPIIT startup recognition.

Annual turnover limit: The annual turnover limit specified for Startup India registration is less than INR 100 crore. The startup should not have an annual turnover of INR 100 crore or more in any financial year since its inception.

First-hand entity: An entity formed through the splitting up or reconstruction of an existing firm is not eligible for Startup India Registration.

Innovation and scalability: A business looking for the Startup India registration must contribute any sort of innovation or improvements either to the product or process. It must have the ability to create wealth or generate employment. 

What are the documents required for Startup India Registration?

The list of supporting documents provided at the time of application for Startup India registration is given below:

1. Company’s PAN card

2. Certificate of incorporation

3. Memorandum of Association (MOA)

4. Article of Association (AOA)

5. MSME certificate

6. GST certificate

Who is the governing agency of Startup India Registration? 

The government body, Department for Promotion of Industry and Internal Trade (DPIIT), is authorized to manage the Startup India Initiative. This department comes under the Ministry of Commerce & Industry. This department focuses on formulating strategies and policies that bring more and more domestic and foreign investments.

Also Learn: A Quick Guide to Pvt Limited Company

How many days does it take to get registered for Startup India?

Normally, the 'Certificate of Recognition' by DPIIT is issued instantly upon the completion of the document verification process.

Also Learn: An Ultimate Guide to OPC (One Person Company)

Frequently asked questions (“FAQs”) on Accounting and Bookkeeping Services

1. What are the Startup India Registration Fees? 

Startup India Registration is free of cost from Government Side. The charges mentioned above are our service charges of assitance.

2. Is It a Government of India Initiative? 

Yes, Startup India Initiative is introduced by the Government of India to promote and support Indian entrepreneurs. 

3.What is the toll-free number or customer care number to know more about Startup India Registration?

For any further query or support, you can call on toll-free number: 1800 115 565