In India, population of youngsters is very high and maximum of youngsters have a dream to become entrepreneur. Some of them have a workable business idea in their mind and on paper but due to shortage of funds they face challenges in converting that business idea into reality. To help these entrepreneurs, the Government of India has launched a scheme known as Startup India and if you meet the criteria prescribed by Startup India Registration then your organisation will be approved by DPIIT and your organisation will be eligible for getting all benefits prescribed under this scheme. In this article, we will discuss about the eligibility criteria for startup India registration and its benefits.
Eligibility criteria for recognition from DPIIT
- Your startup must be incorporated as Private Limited Company or a registered Partnership Firm or a Limited Partnership Firm
- Its period of existence and operations should not be exceeding 10 Years from the date of Incorporation
- This organisation must not be formed by splitting up or reconstructing an already existing business
- After the date of incorporation, its Annual turnover should not be exceeded Rs.100 Crore for any of the financial years
- The idea of business 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
Documents and Process to follow for Private Limited/ LLP Incorporation
- Registration of Private Limited Company/ LLP will be done with MCA
- First of all, we have to get name approval of Pvt Ltd Company/ LLP from MCA
- When get name approval then further documents will be prepared like MOA, AOA, Director’s consent letter, deed formation in case of LLP etc
- After preparation of all document, forms will be filed with MCA with the help of professional like CA/CS/ICWA
Following Documents are required for company incorporation
- PAN Card, Aadhar card and bank statement of Proposed Directors/ Designated Partners
- Photo of Directors/Designated Partners
- Electricity Bill/ Rent Agreement of Proposed registered office of the Company/LLP
- Digital Signature of Directors/Designated Partners
After submission of all documents with MCA, if officer of MCA satisfied with all requirement and Documents then your company/LLP get registered and incorporation certificate will be issued
After incorporation, if you meet other prescribed guidelines as explained above, then you can apply for Startup India Registration to be recognised from DPIIT. If your company details and business idea meet the eligibility criteria for getting approval from DPIIT, then it will be recognised from Ministry and you company/LLP will be eligible for getting benefits as prescribed in the scheme.
Benefits available after DPIIT Recognition are as follows:
- Self-certification-based compliance under 6 Labour Laws and 3 Environmental Law
- No inspection will be conducted for a period of 5 Years in case of labour laws except when credible and verified complain is received against the company
- 80% Rebate in fees while filing of application under Patent
- Eligible startup may be exempted from paying income tax for 3 consecutive financial years out of first 10 years after incorporation
- Easy winding up process is there for DPIIT recognised startups
In case of recognised startup public procurement norms are made easy
- DPIIT recognised startup can register themselves on GeM portal to sell their product/service to government entities.
- In case of manufacturing units, exemption from Prior experience/ Turnover is given
- DPIIT recognised startups have been exempted from submitting Earnest Money Deposit or bid security will filing government tenders.
In addition to the above benefits, database of recognised startup is maintained by Ministry and the same is available for incubators for seed funding purpose. Along with this all startup can connect with each other when meet up is organised.
Ministry also maintain database of Incubators, so that startup can also connect with them to get seed funding amount, if they meet the criteria of Incubators.
Source: Startup India Website
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Disclaimer: This article is for the purpose of information and shall not be treated as solicitation in any manner and for any other purpose whatsoever. It shall not be used as legal opinion and not to be used for rendering any professional advice. This article is written on the basis of author’s person experience and provision applicable as on date of writing of this article. Adequate attention has been given to avoid any clerical/arithmetical error, however; if it still persists kindly intimate us to avoid such error for the benefits of others readers.
The Author can be reached at mail –shivsharma786@gmail.com and Mobile/Whatsapp – 9911303737/ 9716118384
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