Startup India, initiated by the Government of India is a flagship initiative launched in January 2016. This initiative is taken by the government of India to boost the ecosystem for supporting innovation and startups in India. Through this scheme, the government is looking forward to driving sustainable economic development and enhance employment opportunities in India. The government of India recently announced Startup India action plan to meet the requirements of this initiative.
Department of Industrial Policy and Promotion
Department of Industrial policy and promotion was set up in 1995. It is operational under Ministry of Commerce and Industry, Government of India. The department takes care policy formulation and implementation of the promotional and development measures for industrial sector growth. This department is also responsible for the intellectual property rights and other initiatives regarding their promotion and protection
Startup means an entity, incorporated and registered in india
- As a Private Limited Company or Limited Liability Partnership or Registered as a Partnership Firm.
- With an annual turnover not exceeding Rs. 100 crore for any of the financial years since incorporation/registration.
- Working towards innovation, development or improvement or of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.
- An entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Startup’.
- Shall not be more than 10 years old for Startup recognition OR not incorporated before April 2016 to claim Tax Exemption certificate.
An entity shall cease to be a Startup,
- On completion of 10 years from the date of incorporation/registration.
- If its turnover for any previous year exceeds Rs. 100 crore
Benefits of Startup India Registration
| 1. | Tax Exemption
Once your company get Startup recognition, you can further apply for Income Tax Exemption benefits available u/s 80IAC and U/s 56 relief for Angel Tax relief (Tax on Share Premium). |
| 2. | Tender Participation
In many Tenders, Govt. and PSU gives relaxation for Startups to Participation in public procurement job through tenders. Relaxation in Prior experience, EMD or Turnover criteria. |
| 3. | Govt. Funding Opportunity
Government allotted Rs 10,000 crores funds for investment into startups through Alternate Investment Funds. SIDBI is managing this fund. Startups can apply under this quota. |
| 4. | Participate in various Govt. Scheme
Government issues day to day various schemes for startup to participate. For example, sustainable finance scheme, bank credit facilitation, raw material assistance, etc. |
| 5. | Participate Startup Grand Challenges
Many reputed companies encourage startup entrepreneurs for their solutions. Here gives an opportunity for startup to participate in the scheme and win funding. |
| 6. | IPR Govt. Fee Concession
In IPR Registration 50%-80% Govt. fee concession available. Example in Trademark, Patent application. |
| 7. | Self Certifications
Eligible for Self-certification and compliance under 9 environmental & labour laws. |
| 8. | Easy Winding up
Windup company in 90 days under insolvency & Bankruptcy code 2016. |
| 9. | Connect Networks
Search and find various startups and connect with them. Get Mentorship, connect with investors and industries. |
| 10. | GEM Portal Seller Registration and Bid
Startup India (DIPP) require for registration at GEM Portal of govt. https://gem.gov.in/ |
Documents Requirement for Startup India Registration
1. Certificate of Incorporation / Registration Certificate and PAN
2. Email ID and Mobile number
3. Company Details ( Industry, Sector, Category, Regd. Office Address etc)
4. Directors/Partners Details ( Name, Photo, Gender, Mobile No. Email ID, Full Address)
5. Details of Authorised Representative ( Name, Designation, Mobile No. Email ID)
6. A Brief about business and products/services and notes on innovations
7. Revenue model and Uniqueness of the Product
8. Website/Pitch Deck/Video/Patent ( anyone)
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