What is Start-Up India (DPIIT) Registration?
Startup India is a flagship initiative of the Government of India (launched January 2016), intended to build a strong eco-system for nurturing innovation and Startups in the country that will drive sustainable economic growth and generate large scale employment opportunities. The Government through this initiative aims to empower Startups to grow through innovation and design. In order to meet the objectives of the initiative, Government of India announced Startup India Action Plan that addresses all aspects of the Startup ecosystem.
Benefits for recognized startups under the Startup India Initiative
1. SELF CERTIFICATION: And compliance under 9 environmental & labour laws.
2. PUBLIC PROCUREMENT NORMS: Central Ministries/Departments to relax condition of prior turnover & prior experience for Startups.
3. WINDING UP COMPANY: In 90 days under insolvency & Bankruptcy code 2016.
4. IPR Support: Government to bear facilitation cost & 50% rebate on trademark filing.
5. STARTUP PATENT APPLICATION: Fast track & up to 80% rebate in filling patents
6. TAX EXEMPTIONS: Income Tax exemption for a period of 3 consecutive years
7. INR 10,000 CRORE FUND: Funds for investment into startups through Alternate Investment Funds
8. PUBLIC PROCUREMENT NORMS: Exemption from requirement of Earnest Money Deposit in government tenders
9. TAX EXEMPTIONS: On capital gains & on Investments above Fair Market Value
Eligibility of a Start-up to avail benefits
- It should not be older than ten years from the date of incorporation/registration.
- Incorporated as either a Private Limited Company or a Registered Partnership Firm or a Limited Liability Partnership.
- With an annual turnover not exceeding Rs. 100 crore for any of the financial years since incorporation/registration.
- Entity should not have been formed by splitting up or reconstruction a business already in existence.
- Working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.
Documents Required:
- Certificate of Incorporation / Registration Certificate and PAN of the Company/Firm.
- Valid Email ID and Mobile number.
- About Company and Products / Services
- Brief Profile of Directors and authorised representative are required.
Step by Step Process:
- Get a free expert call.
- Provide all the Information and Details as required
- Make the payment
- We’ll prepare and draft the whole application on the basis of the information provided.
- Online application will be submitted.
- Department will review your application and will issue the Certification once they are satisfied with your application within 10-15 days.
FAQ
- What qualifies as a “Startup” for the purpose of Government schemes?
The Startup should be incorporated as a private limited company or registered as a partnership firm or a limited liability partnership Turnover should be less than INR 100 Crores in any of the previous financial years An entity shall be considered as a startup up to 10 years from the date of its incorporation The Startup should be working towards innovation/ improvement of existing products, services and processes and should have the potential to generate employment/ create wealth. An entity formed by splitting up or Reconstruction of an existing business shall not be considered a “Startup”
- How does a Startup obtain benefits under various Government schemes including the ones announced in the Action Plan on January 16, 2016?
For availing various benefits, an entity would be required to be recognized as a Startup by applying on Startup India Mobile App/ Portal. In order to obtain tax benefits, a Startup shall be required to be certified as an eligible business from the Inter-Ministerial Board of Certification. A Startup incorporated between April 1, 2016 and April 1, 2019 shall be eligible to obtain tax benefits proposed under the Finance Bill 2016.
- For how long would recognition as a “Startup” be valid?
An entity would cease to be a ‘Startup’ upon expiry of: a) Up to 7 years from the date of its incorporation/ registration; however, in the case of Startups in the biotechnology sector, the period shall be up to 10 years from the date of its Incorporation/ registration; OR b) If its turnover for any of the financial years has exceeded INR 25 crore Startups would be required to intimate DPIIT of any such cases within a period of 21 days.
- Can an existing entity register itself as a “Startup” on the Startup India Portal and Mobile App?
Yes, an existing entity that meets the criteria as indicated in response to Question 1 can visit the Startup India Portal and Mobile App and get itself recognized for various benefits.
The process of registration in such cases shall be real time and the certificate of recognition would be issued typically within 48 hours upon successful submission of the application.
- An entity is yet to be registered/ incorporated. Can I visit the Startup India Portal and Mobile App to register/ incorporate my entity as either a Private Limited Company or Registered Partnership Firm or Limited Liability Partnership?
There are two options available in such cases. a) Option 1: An entity can register itself through MCA or Registrar of Firms using the existing processes and subsequently register itself on the Startup India portal and mobile app as a “Startup” to avail the benefits. b) Option 2: An entity can register itself through the Startup India portal and mobile app using a seamless process. This facility would be made available in the second phase of the Startup India portal and mobile app launch.
- Do I need to print an application form and submit the physical copy of the same to complete the process of Startup registration?
No. The application has to be submitted online only.
- Would a One Person Company (OPC) be eligible to avail benefits under the Startup India initiative?
Yes. One Person Companies are eligible to avail benefits under the Startup India initiative
- If a startup has submitted an application and the application gets rejected due to missing documents. After receiving the required documents, should the startup edit the existing application or resubmit another application?
If the application of the Startup Applicant has been rejected, he may edit his application by visiting the link http://www.startupindia.gov.in/editRejApp.php and upload the recommendation letter. If the application has received Startup Recognition Certificate, he is required to submit through mail the recommendation letter.
- I have an innovative idea that I want to pursue as a Startup. What guidance can Startup India provide to me?
DIPP has launched Learning & Development module for budding entrepreneurs, the learning Program is a 4-weeks free program for early stage entrepreneurs across the country. This online program is aimed at teaching new and existing entrepreneurs on how to start a new business and how to scale an existing one.
Interested individuals can enroll for this free course at this link: http://www.startupindia.gov.in/learning-development/ For more courses, please visit the Learning & Development section
Also, incubators all across India provide guidance to budding startups and you can approach these. There is a list of incubators listed on the Startup India portal for your reference. To get your StartUp recognised under DPIIT, feel free to contact us here or mail us your query at info@aapkaconsultant.com
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