The main vision of Startup India is “to move India towards becoming one of the most vibrant startup ecosystems in the world”. It provides many useful benefits to startups, such as Tax Exemptions, Financial Support, etc. In order to obtain these benefits, the first mandatory thing to do is to register your startup under the Startup India scheme. To meet the eligibility for Startup India Registration, certain criteria need to be fulfilled and that is going to clarify in this article.
On this page
What is Startup India?
Startup India is a great initiative of the Government of India to promote and develop innovation and the skills of entrepreneurship of the people. It basically aims to provide a platform for budding entrepreneurs to accelerate their dreams and build their own business platform.
What are the eligibility for Startup India Registration?
A startup should fulfill certain conditions to be eligible for registration under the Startup India scheme. Here is the complete information about the eligibility for Startup India registrtaion.
- Age of the Applicant:
- The very first thing is the age of the person who is applying for the Startup Registration. It is to be noted that any Indian citizen who is of the age of 18 and above 18 can apply for the Startup India scheme.
- In order to get into further eligibility criteria this must be satisfied first.
- Age of the Firm:
- Once the applicant is eligible and eligible to register next comes the age of the firm. It means that the date of Incorporation of the company or the startup should not exceed ten years.
- Type of Company:
- The Company should have been incorporated either as a Private Limited Company or as a Limited Liability Partnership (LLP). After the startup is registered, a startup can either be incorporated as a Private Limited Company or as an LLP.
- There are other two options for incorporation as a One Person Company (OPC) or Sole Proprietorship. These two options are mostly excluded, it is because they are not that good at attracting the investment of the company.
- Hence, the startup should be either incorporated as a LLP or a Private Limited Company.
- Annual Turnover:
- In order to get eligible, the annual turnover of the startup should not exceed INR 100 crore in any financial year and also from the date when the startup got incorporated.
- Original Entity:
- Original entity means when the company initially formed it should be original and not be part of any existing company or it should not have formed splitting up from the existing company.
- Innovative & Scalable:
- Innovation is not only playing a major role in a Startup, it works out in all areas. Innovation in a startup means, it should have a plan for improving or developing the products, services, and processes.
- It is essential to have a scalable business model with great potential in order to create good wealth and employment in the Startup.
- Registration and Approvals:
- It is very necessary for Startups to obtain the approval from Department for Promotion of Industry and Internal Trade (DPIIT).
- It is also necessary to get a funding letter from the state government or the central government for any scheme to promote the innovation of the startups.
As previously stated, Startup India is a Government of India program to encourage and assist the growth of businesses in India. It offers companies a variety of incentives, including tax breaks, financial assistance, and access to incubators. Startups must register with the Startup India program to receive these incentives.
Conclusion
In conclusion, the eligibility for Startup India registration plays a crucial role in determining the suitability of startups for the program. Meeting specific criteria such as age, type of company, annual turnover, and originality of the entity is essential to qualify for benefits under Startup India.
By fulfilling these requirements, startups can access a range of incentives and support offered by the government, ultimately fostering innovation, growth, and entrepreneurship in India. Eligibility for Startup India registration is the first step towards realizing the vision of building a vibrant startup ecosystem in the country.
One of the key benefits of utilizing 24efiling for company registration is its accessibility – entrepreneurs can initiate the registration process from anywhere with an internet connection, eliminating the need for physical visits to government offices.
FAQs
1. What is the Startup India Scheme?
Startup India is a government of India program aimed at encouraging entrepreneurship and supporting the growth of companies. It offers a variety of advantages, incentives, and assistance to aspiring entrepreneurs and new company concepts.
2. Who is eligible to avail of benefits under the Startup India Scheme?
Any business, whether a Corporation, LLP, Partnership firm, or individual, can be classified as a startup if it fits the Government of India’s criteria.
These requirements include having been incorporated or registered in India for less than ten years and having an annual turnover of less than INR 100 crore in any of the previous fiscal years.
3. What sectors are eligible for Startup India benefits?
Startups from various industries, including Technology, Manufacturing, Healthcare, Agriculture, and Services, are eligible for Startup India rewards. There are no industry limits, so a diverse variety of firms can engage.
4. Can an existing business be considered a startup under this scheme?
No, The Startup India program is intended to help new and innovative businesses.
5. Are there any tax benefits for startups under this scheme?
Yes, Entrepreneurs qualified for the plan can get income tax breaks for three consecutive assessment years out of a possible seven. This implies that qualifying startups can deduct 100% of their profits for three of the seven years following incorporation.
6. What support does Startup India provide to recognized startups?
Apart from tax benefits, recognised startups can gain access to a variety of benefits, including funding support through a Fund of Funds, easier public procurement norms, self certification under labour and environmental laws, fast-track patent examination at reduced costs, and access to an industry network of mentors, investors, and incubators for guidance and support.
