What is Startup India Programme
Startup India is the Initiative of the Central Government Launched in 2016 Under the Leadership of Prime Minister Narender Modi. This Initiative is taken by the Government in order to Promote Innovations and Startups in India and to enhance Employment Opportunities and Sustainable Economic Development. Startup India Program Facilitate Entrepreneurs to develop their Startup with Simple Procedure of Registration and Tax exemptions for Startups Registered Under Startup India Program.
Table of Content:-
- What is meant by Startup
- Eligibility of Startup to be Registered in India
- Steps to Register Under Startup India
What is meant by Startup
Startups are young companies founded to develop a unique product or service, bring it to market and make it irresistible and irreplaceable for customers.
Startups are rooted in innovation, addressing the deficiencies of existing products or creating entirely new categories of goods and services, thereby disrupting entrenched ways of thinking and doing business for entire industries. That’s why many startups are known within their respective industries as “disruptors.”
In India Famous Startups are- Paytm, OYO, Zomato, Ola, Byju’s etc.
Eligibility of Startup to be Registered Under Startup India
An entity shall be considered as a Startup:
1. Upto a period of ten years from the date of incorporation/ registration, if it is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India.
2. Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees.
3. Entity is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.
Provided that an entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Startup’.
How to Register Under Startup India
STEP 1 Incorporate Your Business
First of all,You have to Incorporate Your Business as Private Limited Company,Partnership or LLP
After Incorporation You have to Obtain Certificate of Incorporation/Partnership Registration and Other Compliances
STEP 2 Register Under Startup India
After the Incorporation You have to Register on Startup India Website (www.startupindia.gov.in) and Register your business online as Startup and Provide Basic Details about Your Business
STEP 3 Get Recognition on DPIIT
Under the Startup India initiative, eligible companies can get recognised as Startups by DPIIT (Department for Promotion of Industry and Internal Trade), in order to access a host of tax benefits, easier compliance, IPR fast-tracking & more.
STEP 4 Documents Required(Pdf Format only)
- Incorporation/Registration Certificate of your startup
- Details of the Directors
- Proof of concept like pitch deck/website link/video (in case of a validation/ early traction/scaling stage startup)
- Patent and trademark details (Optional)
- PAN Number
STEP 5 Specific Disclosure If You Need Tax Exemptions
Under Startup India Startups do not have to pay income tax for the three years from the Beginning but to avail such benefits, the company must be certified by the Inter-Ministerial Board (IMB).
STEP 6 Obtain Recognition Number
After Completing above 4 Steps you will immediately get the Recognition Number of Your Startup and the Certificate of Recognition will be issued in 2 days if Company met the Prescribed Recognition Criteria
There is also a Plenty Provision of Not Uploading/Wrong Information Uploaded by Startup then Startup will be Punishable with 50% of Paid-Up Capital of Startup with a Minimum Fine of Rs 25000.
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