Start-up Recognition:
The keyword is innovation, thus a business would either develop a new product/ service or redevelop a current product/service into a better product.
Definition of Start-up:-
The term ‘start-up’ or “start-up company” means a private company incorporated under the Companies Act, 2013 (18 of 2013) or the Companies Act, 1956 (1 of 1956) and recognised as start-up in accordance with the notification issued by the Department of lndustrial Policy and Promotion, Ministry of Commerce and Industry”
Documents required for Registration of startup–
- Incorporation/Registration Certificate of your startup
- Details of the Directors
- Proof of concept like pitch deck/website link/video (in case of a validation/ early traction/scaling stage startup)
- Patent and trademark details (if any)
- PAN Number
Tax exemptions allowed to Eligible Startups
- 3 year tax holiday in a block of seven years
- Exemption from tax on long term capital gain u/s 54EE
- Tax exemption on investments above the fair market value
- Tax exemption to Individual/HUF on investment of long-term capital gain in equity shares of Eligible Start-ups u/s 54GB
- Set off, carry forward loss and capital gains allowed in case of a change in Shareholding pattern.
Start-up Funding Options in India
- Crowdfunding
- Self-funding
- Venture Capitalists
- Angel Investment
- Startup Schemes
Benefits of Registering as Start-up
- Reduction in cost / fee reduction
- Easy access to Funds
- Tax holiday for 3 Years
- Apply for tenders
- R & D facilities
- No time-consuming compliances
- Tax saving for investors
- Easy exit
- Meet other entrepreneurs
- Self-Certification Under Employment and Labour Laws
Crux- Who is Eligible to be recognised as a Start-up:
1. A private limited company or
2. Registered partnership firm or
3. A Limited liability partnership
4. Turnover not exceeding INR 100 Crores (in any of the previous financial years)
5. An entity shall be considered as a start-up up to 10 years from the date of its incorporation
6. Object of the business- to work towards innovation, improvement of existing products, services and processes, have the potential to generate employment.
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For any type of assistance feel free to contact us or Reach us at: – MG Associates (Company Secretaries)- CS Manisha Mittal – 70152-77705
