Strategic Steps: Consultation for Startup India Registration

Starting a business can be adventurous but at the same time its legal and administrative procedure is overwhelming. So, to support and promote entrepreneurship, Indian government has taken the initiative and introduced the Startup India, which provides various benefits and incentives to startups.

Consultation for Startup India Registration is the topic which is going to debug through this article. This blog will be helpful for those who are registering their Startup in India.

What are Startups?

Basically, you need to have clear and well-documented business ideas before you start the registration process. Try to keep your business ideas more unique and innovative. Then determine the type of legal entity for your startup.

A Startup is defined as a Private Limited Company, Partnership firm, or Limited Liability Partnership engaged in developing, deploying, or commercializing innovation products, service, or processes. Private Limited Company is the most preferable choice then Limited Liability Partnership (LLP) and Sole Proprietorship.

Consultation for Startup India Registration: Steps to Incorporate

If you haven’t already registered your business entity, you need to do so. Choose a suitable business structure such as a Private Limited Company, Partnership Firm, or LLP. Register it with the Registrar of Companies (ROC) under the Companies Act, 2013. Provide the necessary certificates and documents for your business, including the Certificate of Incorporation.

• Obtaining Director Identification Number:
  • If you are registering with a Private Limited Company, you and your co- founders must obtain a DIN, you need to file an online application on the Ministry of Corporate Affairs (MCA) website to get it, and identity, address proofs, passport sized photo, and digital signature are the basic requirements. 
• Obtaining a Digital Signature Certificate:
  • As the Digital Signature Certificate (DSC) has become the basic requirement for the registration we need to know more about its applying criteria.
  • It is necessary for filing the registration documents electronically. You can obtain it from authorized agencies, and it involves submitting your identity and address proof. 

Through MCA’s online rental portal you can check for your company’s unique name availability. 

Steps to register on the Startup India Portal  

• Step 1: Visit the Startup India Portal
  • Go to Startup India portal
• Step 2: Click on Register/Login
  • On the portal’s homepage, click on the Register/ Login button located at the top right corner of the page.  
• Step 3: Choose Startup Registration
  • You will obtain a new page. Here, you’ll see two options:
    • Startup Registration
    • Login.
  • Since you are registering a new startup, click on Startup Registration. 

• Step 4: Fill in your details  
  • Provide certain required details about your Startup, including:  
    • Legal entity name 
    • Business name 
    • Registration number (if applicable) 
    • Date of Incorporation  
    • Address of your startup 
    • Permanat Account Number (PAN) and Goods and Services Tax (GST) details (if applicable) 
    • Contact details

Make sure to have all the necessary details and documents ready before starting the registration process. 

• Step 5: Provide information about your Business 
  • Be prepared to explain how your startup is innovative and how it adds value to the market.
  • Provide all the information about your business, ideas, planning, products, services, or process.  
• Steps 6: Upload supporting documents 
  • Certificate of incorporation/Registration 
  • Letter of Recommendation (if you have one) 
  • Brief note about your startup  
  • Pitch deck or presentation (optional) 
  • Any other documents as required 
  • Upload clear and accurate documents to support your application 
• Step 7: Review and Submit  
  • Review all the information you have entered and the documents you have uploaded to ensure accuracy.
  • Click the “Submit” button.  
• Step 8: Receive Recognition certificate  
  • Once after the approval of your application you will receive a recognition certificate from Startup India.
  • This certificate acknowledges your startups recognition and provides access to various benefits and schemes. 
• Step 9: Self-certification 
  • You will need to self-certify that your startup meets the eligibility criteria as defined by the Government of India.
  • Ensure that your business is eligible as a startup before proceeding. 

Following these steps will help you to complete your Startup India registration successfully. 

What is the eligibility criteria for Startup India Registration?

To register as a startup under this program, there are certain eligibility criteria that need to be met.  

• Entity Type:
  • To qualify as a startup, your business must be registered as a Private Limited Company, an LLP, or a Partnership firm.  
• Age of the Business:
  • The startup should be relatively new and not have been in operation for more than ten years from the date of its incorporation. For biotechnology startups, this limit is extended to 15 years. 
• Turnover Limit:
  • The startup’s turnover in any of the previous financial years should not exceed INR 100 crores.
  • This ceiling ensures that the benefits are directed towards early-stage and small to medium-sized enterprises. 
• Validation by DIPP:
  • The startup must obtain a certificate of recognition from the Department for Promotion of Industry and Internal Trade (DIPPT), which is the central authority responsible for endorsing startup status in India. 
• Intellectual Property Rights (IPR):
  • It encouraged startups to have registered IPR such as patents, trademarks, or designs.
  • However, having IPR is not a mandatory requirement. 
• Self-Certification:
  • Startups can self-certify their adherence to these eligibility criteria through a simple online process.
  • No prior approval is needed. 
• Entity Formation in India:
  • The startup should be incorporated and operate primarily in India. It must demonstrate a commitment to improving the Indian ecosystem. 
• Notable Exclusions:
  • Certain sectors, like real estate, non-banking financial companies, and capital market investments, are not eligible for Startup India registration. 
• Tax Benefits:
  • Once recognized as a startup, you can avail various tax benefits, including a 100% income tax exemption for the first three consecutive years and an exemption from the capital gains tax for investments in eligible startups. 

Conclusion

In conclusion, to qualify for Startup India registration, your business must be a relatively new entity, registered as a Private Limited Company, LLP, or Partnership firm, with a turnover not exceeding INR 100 crores. It should focus on innovation and have the potential to create jobs.

Obtaining a DIPPT certificate is crucial, and self-certification is possible. Once registered, you can benefit from tax exemptions and opportunities for government procurement. These criteria aim to support and promote startups in India, encouraging economic growth, job creation, and innovation.

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