Are you a young entrepreneur full of new & unique ideas about any product or service but not getting any platform about how to start it ? If your answer is Yes, then my article on startup will be very useful for you all. This article will let you know about the meaning of startup, its registration process and benefits provided to startups.
1. Startup Meaning
General Meaning
Startup is a name which can be given to a form of business whether Partnership, LLP or a private company which is started by some young people having unique ideas and intending to convert such ideas in developing any unique product or service for society.
Other features through which Startup meaning can be explained are that In their initial stage of business, they have lack of funds and so search for Prospective investors who can invest in their business.
Features
1. Products or services to be provided have distinctive qualities and features.
2. Entrepreneurs intending to start it have a lack of funds.
3. Doesn’t have a well developed business model.
Legal Meaning to get DPIIT Recognition
A startup is recognised under DPIIT if it fulfils following conditions given below-
1. It must be a Private company registered under Companies Act,2013, LLP registered under Limited Liability Partnership Act, 2008 or a Partnership registered under Partnership Act,1932.
2. It must not been older than 10 years from the date of its incorporation.
3. Business carried on by a startup involves innovation, improvement or development of products or processes or services or if it is a scalable business model having high employment generation or wealth creation.
4. Annual Turnover of a business must not exceed 100 crore for any financial year since incorporation.
Notes-
- It must not be formed due to reconstruction or splitting up of an existing business.
- It ceases its recognition on completing 10 years of Incorporation or if its turnover exceeds 100 crore in any previous year.
2. DPIIT Recognition Process
(a) Documents required
Following documents are required to get recognised as a startup-
- Entity’s PAN No.
- Certificate of Incorporation/ Registration
- Director details
- Patent, Copyright and trademark details (Optional)
- Proof of concept like pitch deck/ Website link/ video( In case of Validation/Early traction/scaling stage startup)
Note-
Proof of concept not required if startup is at idea stage, it may be updated later on.
(b) Startup Recognition
Application can be made online through mobile app or DPIIT Portal.
There are 3 steps to complete registration-
Steps to complete Startup Recognition
Step 1: Register with Startup Site
First you need to register an account on Startup India website using link www.startupindia.gov.in For this you are required to fill some details like Name, E-mail Id, Mobile Number and Self by created password or you may register using your Google, Twitter, Linked In or facebook.
Step 2: Business profile registration
After this, you are required to create your business profile by selecting the Startup option after logged in to your account.
Fill following details to be provided to complete your registration process-
Mandatory details
- Entity/Company’s logo
- Startup name
- E-mail ID, State, City,
- Stage of Startup- Ideation, Validation, Early Traction, Scaling
- Business activities in brief
- CIN No., Nature of Entity (Pvt. Company, LLP, Registered Partnership)
- Industry, Sector, Services
- Whether a startup is interested in Investors, Incubators, Mentors, Accelerators, Other startups ?
Optional details
- Whether a startup is funded or bootstrapped?
- Mobile No., Website, Mobile App Link
- Udyog Aadhaar
Step 3: DIPP Recognition
Now, after you have created your Business Profile, you can proceed further to apply for DIPP Recognition.
For this, you are required to fill following details-
1. Entity details- Nature of Entity, Industry, Sector, Categories, CIN, PAN No.
2. Full Address (Office)- Address must be same as provided while registering your entity under Respective acts
3. Authorized representative details- Name, E-mail Id, Mobile No., Designation,
4. Directors/ Partners details- Number of Directors/ Partners, Name, E-mail Id, Phone No., Gender, Address
5. Information required- Current no. of employees (including founders), Startup Stage (Ideation, Validation, Early Traction, Scaling)
6. Has your startup applied for any IPR(Intellectual Property Rights)?
7. Does it create any innovation of product/ service? (Brief Note to be provided)
8. Does it lead to employment generation or/ and wealth creation? (Brief Note to be provided)
9. Has your startup received funding?
10. Startup details- Awards/ Recognition received(if any), Problem the startup is solving and how it proposes to solve it, uniqueness of solution ( in brief), how your startup proposes to generate revenue ( in brief).
11. Self certification-Attach Certificate of Incorporation/ Registration Certificate (Must be in pdf, png, jpg format) and Not to exceed 5 MB), Website Link/Videos/ Pitch deck/ Patents/ Others and certify that Eligibility criteria met by startup.
Time limit for receiving Startup Recognition certificate
- Within 15 days, your recognition application would be accepted and a Recognition Certificate would be granted or it would be marked for editing.
- There are 3 chances given to edit an application, after which you need to resubmit the application.
Some important terms-
|
S.No. |
Term |
Meaning |
|
1. |
Pitch deck |
It means a form of Power point presentation describing a company’s products or services to prospective investors. |
|
2. |
Ideation |
Startup stage when you have an idea for a product or service. |
|
3. |
Validation |
Startup stage when you have built a Minimum Viable Product. |
|
4. |
Early Traction |
Startup stage when you have acquired customers, generating revenue. |
|
5. |
Scaling |
Startup stage when you are generating sustainable profits. |
3. Benefits and Exemptions for Startups
Startups are provided with different benefits and exemptions under various acts. These include-
- Income tax act
- Companies act
- Labour Acts
- Environment Laws
- Public procurement policy benefits
- Insolvency and Bankruptcy code
Author Bio
