A startup means a company that is still in the early stages of its business. A startup is a young company that has just started. Startups are usually small and are initially funded and managed by a handful of founders or a single person. These companies offer products or services that are currently not offered anywhere else in the market or that the founders think is being offered in an inferior manner.
Registration is required to get started:
Starting from business registration:
The first thing you need to start a new business or start a business is to register your company. There are many company structures from which you can choose the best one for you. The types of business structures in India are as follows:
1. Private Liability Company
2. Public Company
3. One Person Company
4. Limited Liability Partnership
5. Partnership Firm
6. Sole Proprietorship
7. NGO/ Trust
8. Nidhi Company
New companies should be added to each of these company structures depending on the size of the business, the capital invested, the number of members and the risks associated with the company. The characteristics, advantages and disadvantages of each corporate structure are different, and the entrepreneur should consult an economist to find out which structure suits his needs.
Enrollment in startups in India:
If a company falls within the definition of incorporation as per the DIPP notice, it can apply to Startup India. A company registered as a Private limited company under the Companies Act, 2013, a partnership firm under Section 59 of the Partnerships Act 1932, or a limited liability company under the Limited Liability Partnership Act 2008., obtain Startup India registration if it meets the following criteria:
1. Not more than ten years have passed since the date of business registration.
2. The annual revenue of the company for the fiscal year since its registration does not exceed Rs. 100 crores.
3. Companies work to innovate, develop or improve products or processes or services, or a scalable business model with high potential to create jobs or create wealth.
MSME Registration:
MSME registrations can be obtained by micro, small and medium-sized enterprises in India to benefit from various subsidies and benefits associated with loans, taxes and other programs. The MSME Law has many advantages for micro, small and medium enterprises for their machinery and raw materials, purchased at subsidized prices.
GST Registration:
All manufacturers, sellers, service providers, exporters, etc. You must apply for your GST registration in India. All types of business formations must be GST registered in the following cases:
- When total sales are greater than 20 GEL INR or 10 GEL in a US state-specific category.
- When the company ships goods domestically.
- When a company sells goods or offers services online.
- If the company has done tax registration under the previous tax regime.
- In addition to the above criteria, the GST Law provides various other criteria determining the GST registration.
GST registration must be done within 30 days of starting the business; otherwise, the business will face severe penalties.
Udyog Aadhaar Registration:
Udyog Aadhaar Registration is a new government initiative to support small businesses. The registration process came from Udyog Aadhaar as a substitute for SSI registration and MSME registration. Once Udyog Aadhaar obtains business registration, he will benefit from various subsidies and programs specifically provided by the government to support small businesses in India.
Licenses for Startup:
In addition to the registrations mentioned above, several types of startups such as shops and restaurants, grocery stores, import-export businesses, financial institutions, etc. must obtain certain permits, namely as follows:
Purchase and Manufacture License for Startup Registration:
Every state has an independent Shop and Establishment Act, which provides rules that every business and establishment operating in that state must follow. The law also regulates business licenses or business permits.
Import Code Registration:
All importers who look forward to import or export goods/services from India must have a valid IE code. The IE Code must be mentioned in all relevant customs documents. Bankers require a valid IEC registration for overseas payments. To receive an import-export code, it is mandatory to have a current PAN and bank account
That being said, certain transactions are required for non-bank financial institutions or financial technology companies NBFC, while broadcasting licenses are required for multimedia broadcasting platforms.
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