Hereby, I wrote an article on “how to get registration under start-up india”. But before going to main agenda let’s discuss few concept about the same:-
Definition: A startup company, or simply a startup, is an entrepreneurial venture in its early stages of operations typically aimed at resolving a real life issue with an innovative product or service. These ventures are typically small in nature, new, and funded by either to founding entrepreneur or a group of investors who believe in the founder or company concept.
What is the definition of start up company? These companies often start with just an idea and a plan that might actually resolve a burning issue or plug a business gap in the market. Typically, these companies grow in one of two ways: investor funded or debt funded. Many startups solve a need in society and attract investors because of the growth opportunity. Some entrepreneurs, however, are leery of taking on new investors and don’t want to dilute their ownership, so they opt for debt financing instead.
STARTUP INCORPORATION PROCESS
Step 1: Incorporate your business
You must first incorporate your business as a private company, public company, OPC, LLP as per your requirement (SPICE+ web form).
You have to follow all the normal procedures for registration of any business like obtaining the certificate of Incorporation/partner registration , PAN, and other required compliances.
Step 2: Register with Startup India
Then the business must be registered as a startup. All you need to do is log on to the startup India website and fill up the form with details of your business and upload certain documents.
Step 3: Documents to be uploaded (in PDF format only)
a) letter of recommendation/support – A letter of recommendation must be submitted along with the registration form. Any of the following will be valid-
No Letter of Recommendation required: A letter of recommendation from an incubator/industry association which was earlier required is no longer needed for either recognition or tax benefits.
(i) A recommendation (regarding innovative nature of business) from an Incubator established in a post-graduate college in India , in a format specified by the Department of Industrial Policy and Promotion (DIPP); OR
(ii) A letter of support by an incubator (training wheels), which is funded (in relation to the project) by Government of India as part of any specified scheme to promote innovation; OR
(iii) A letter of recommendation (regarding innovative nature of business), from an Incubator, recognized by the Government of India in DIPP specified format; OR
(iv) A letter of funding of not less than 20% in equity, by any Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel Network, duly registered with SEBI that endorses innovative nature of the business; OR
(v) A letter of funding by Government of India or any State Government as part of any specified scheme to promote innovation; OR
(vi) A patent filed and published in the Journal by the Indian Patent Office in areas affiliated with the nature of the business being promoted.
b) Incorporation/Registration Certificate.
c) Description of your business in brief.
Step 4: Answer whether you would like to avail tax benefits
Startups are exempted from income tax for 3 years. But to avail these benefits, they must be certified by the Inter-Ministerial Board (IMB). Start-ups recognized by DIPP, Govt. of India can now directly avail IPR related benefits without requiring any additional certification from IMB.
Step 5: Finally, you must self-certify that you satisfy the following conditions
a) You must register your new company as a Private Limited Company, Partnership firm or a Limited Liability Partnership
b) Your business must be incorporated/registered in India, not before 5 years.
c) Turnover must be less than 25 crores per year.
d) Innovation is a must– the business must be working towards innovating something new or significantly improving the existing used technology.
e) Your business must not be as a result of splitting up or reconstruction of an existing business.
Step 6: Immediately get recognition number
That’s it! On applying you will immediately get a recognition number for your startup. The certificate of recognition will be issued after the examination of all your documents.
PENALTY FOR SUBMISSION OF WRONG AND FORGED DOCUMENTS –
Fine of 50% of your paid-up capital of the startup with a minimum fine of Rs. 25,000.
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HAVE A SAFE AND BRIGHT DAY AHEAD. 🙂