STARTUP INDIA
Meaning is Start up recognition
Under the Startup India initiative of the Government of India, eligible companies can get themselves recognized as Startups by Department for Promotion of Industry and Internal Trade, in order to access a host of tax benefits, easier compliance, IPR fast-tracking & more.
Objective of the Government of India
To reduce the regulatory burden on Startups, thereby allowing them to focus on their core business and keep compliance costs low.
Eligibility criteria for Startup Registration
Company Type – Incorporated as a Private Limited Company, a Registered Partnership Firm or a Limited Liability Partnership
Company Age – Period of existence and operations should not be exceeding 10 years from the Date of Incorporation
Annual Turnover – Should have an annual turnover not exceeding Rs. 100 crore for any of the financial years since its Incorporation
Original Entity – Entity should not have been formed by splitting up or reconstructing an already existing business.
Innovative & Scalable – Should work towards development or improvement of a product, process or service and/or have scalable business model with high potential for creation of wealth & employment
BENEFITS
Government Tenders – In Government Tenders, the startups get the priority in getting the tenders. Moreover, they are not required to have experience.
Simplified Compliances – Startups shall be allowed to be self-certify compliance for 6 Labour Laws and 3 Environmental Laws through a simple online procedure.
Labour Laws:
- The Building and Other Constructions Workers’ (Regulation of Employment & Conditions of Service) Act, 1996
- The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979
- The Payment of Gratuity Act, 1972
- The Contract Labour (Regulation and Abolition) Act, 1970
- The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
- The Employees’ State Insurance Act, 1948
Environment Laws:
- The Water (Prevention & Control of Pollution) Act, 1974
- The Water (Prevention & Control of Pollution) Cess (Amendment) Act, 2003
- The Air (Prevention & Control of Pollution) Act, 1981
In the case of labour laws, no inspections will be conducted for a period of 5 years. Startups may be inspected only on receipt of credible and verifiable complaint of violation, filed in writing and approved by at least one level senior to the inspecting officer.
In the case of environment laws, startups which fall under the ‘white category’ (as defined by the Central Pollution Control Board (CPCB)) would be able to self-certify compliance and only random checks would be carried out in such cases
80 IAC Tax Exemption
Post getting Startup recognition, a Startup may apply for Tax exemption under section 80 IAC of the Income Tax Act, 1961. Post getting clearance for Tax exemption, the Startup can avail tax holiday for 3 consecutive financial years out of its first ten years since incorporation.
QUESTIONS TO BE ANSWERED (MINIMUM 500 WORDS)
1. Brief note about our business
2. What is the problem the startup is solving
3. How does your startup proposed to solve this problem
4. What is the uniqueness of your solution
5. How does your startup generate revenue
ADDITIONAL INFORMATION REQUIRED
- Number of employees
- Website, if any
- Any Trademark, Copyright or Patent applied by the Company
- Any award recognition received by the entity
- PAN and Charter documents of the Company/LLP
Author Bio
