In this article, we shall discuss the registration applicable on Startups & its eligibility criteria. Further, we shall also discuss the details & documents required for Startup registration under Department for Promotion of Industry & Internal trade (‘DPIIT’).
BRIEF ON DPIIT STARTUP INDIA RECOGNITION
- The Government of India under its flagship programme “Startup India” introduced the concept of an “Eligible Startup“ in the year 2015.
- A formal national policy framework was launched in February 2016 called the Startup India Action Plan.
- Department for Promotion of Industry and Internal Trade (‘DPIIT’) has defined the criteria for “Eligible Startup“.
- “Eligible Startups” entitled to benefits announced by government under various programmes, schemes and regulations.
- Startup can get recognition by making an online application on www.startupindia.gov.in
REGISTRATIONS
Registration of ‘Eligible Startups’ under Department for Promotion of Industry and Internal Trade (‘DPIIT’).
ELIGIBILTY CRITERIA TO CONSIDER AS A STARTUP
1. Types of entities
- Incorporated as a
- Private Limited Company,
- Registered Partnership Firm or
- Limited Liability Partnership
2. Incorporation criteria
• Not older than 10 years from the date of incorporation/registration.
3. Turnover
- Annual turnover not exceeding Rs. 100 crore for any of the financial years since its incorporation/registration
4. Innovation, development/improvememt, employement/wealth creation
- Working towards
- Innovation, development or improvement of a product, process or service and/or
- Scalable business model with high potential of employment generation or creation of wealth
5. No Splitting/ Reconstructing
• Entity should not have been formed by splitting up or reconstructing an already existing business
INFORMATION REQUIRED FOR REGISTRATION
1. Details of the company/ LLP/Partnership firm
a. Name
b. Industry
c. Sector
d. Categories
e. PAN
f. Address
g. Details of Partners/ Directors
2. Current number of employees(including founders
3. Stage of the startup
a. Ideation-You have an idea for product or service
b. Validation- Build a prototype
c. Early Traction-Acquiring customers.
d. Scaling-Grow & create Sustainable profits
4. Is your startup creating an innovative product/service/process or improving the existing product/service/process.
5. Is your start-up creating scalable business model with high potential of employment generation or wealth creation.
6. Brief note about innovation, improvement and scalability
7. Has your startup receiving funding. If yes, proof of funding
8. Startup Activities
a. What is the problem solving.
b. How startup will help in problem solving.
c. Uniqueness of solution.
d. How does your startup generate revenue
9. Pitchdeck
a. Brief how your startup is innovative and/or scalable.
b. Number of people employed and funding raised, if any
c. Credentials of founders/Management
d. Screenshots of images of product/website link, if any.
10. Startup Video Link
11. Copy of Incorporation/registration certificate
In the next article, we shall discuss the Taxation benefits available to startups & the benefits available to Startups.
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About the Author
Author is CA Vidhu Duggal helping in advisory on domestic & International taxation issues. She is also founder of Vidhu Duggal & Company. Chartered Accountants, a Chartered Accountancy firm with its head office at New Delhi and can be reached at vidhuduggal94@gmail.com or +91-9268747482.
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