Startup Registration India: 5 Steps to register Startup

People may have ideas, but many of them do not know how to set up a company or convert the idea into a business venture. People don’t know how to register their business as a startup. Some people don’t even know if their company qualifies as a startup.

With this in mind, we have created a blog post to help you by explaining the eligibility criteria for the Startup Registration India and the process of registering your company. Before diving into qualifications and how the process works, let’s understand what Startup Registration India is.

What is a Startup?

A startup is a company or organization in its early stages and is typically characterized by a high degree of uncertainty and risk. Such companies arise when the founders realize that the existing system they were working in has some flaws and try to solve the problem by starting a new company themselves.

What is Startup India Scheme?

Startup India is an initiative of the Government of India, led by Prime Minister Narendra Modi, to foster the growth of startups in India. The initiative was announced in New Delhi on January 16, 2016.

Now that you have a good idea of ​​what a startup is and what Startup India is, let’s look at the conditions under which every company in India can qualify as a startup.

What are the eligibility criteria for Startup?

To qualify as a startup, the following criteria must be met:

• Business must be a Limited Liability Company or Limited Partnership.
• The company remains a startup for the first 10 years from the date of registration. Recently, the Indian government changed this period from 7 years to 10 years to provide long-term opportunities and tax exemptions to businesses.
• A company remains a startup if its annual turnover for 10 years does not in any case exceed 10 billion rupees.
• Beyond this threshold, a company can no longer be called a Startup. INR 100 crore was also recently raised by the Government of India from INR 25 crore.
• Companies must obtain approval from the Department of Industrial Policy and Promotion (DIPP).
• The company must receive funding from an Incubation Fund, Angel Fund, or Private Equity Fund.
• Sponsored by the Indian Patent and Trademark Office required.
• Recommendation letter from childcare provider required.
• Companies need to develop innovative ideas and plans.
• All financing details must be registered with SEBI (Securities and Exchange Board of India).

How to do Startup Registration India?

Registering a startup in India includes the following steps:

• Step 1: Incorporate your business
  • First of all, take your business private, it must be incorporated as a limited company. A corporation, Limited Liability Partnership (LLP), or Partnership.
  • All you have to do is follow the normal steps of filling out the form to obtain registration.

• Step 2: Register with Startup India
  • Next, you need to register your business or company as a startup with the government’s Startup India program.
  • All you have to do is fill out the form available on the Startup India website. You will need to provide all information and upload a certain number of documents.

• Step 3: Documents will be uploaded in PDF format only.
  • A letter of recommendation is required along with the registration form. You can get any of the following letters of recommendation:
    • Letter of recommendation in the DIPP approved format from a reputed post graduate university incubator in India.
    • Letter of recommendation from an incubator supported by the Government of India under certain programs to promote innovation.
    • The DIPP format letter from one of the children’s homes recognized by the Government of India.
    • Incubation Fund registered with SEBI Private Equity Funds, Private Equity Funds, and Angel Fund Accelerators.
    • Funding notes containing at least 20% of the shares of a private equity fund supporting the innovative power of companies.
    • Subsequent recommendations of the Central or State Governments of India.
    • Patents filed in fields related to the nature of the business being pursued and published in the Indian Patent Office Journal.
    • Certificate of Registration or Incorporation: The certificate of incorporation of a company or LLP or the registration certificate of a partnership firm must be uploaded. A brief description of the company.

• Step 4: Specify whether tax exemption is required.
  • In India, a startup company does not have to pay income tax for its first three years. However, to take advantage of these benefits, companies must be certified as tax-exempt by the Inter Ministerial Board (IMB).
  • Businesses registered with DIPP can rest assured here, as the benefits of registration are sufficient.

• Check the following conditions yourself.
  • You are a Limited Liability Company (LLP) or partnership.
  • A company can be incorporated or registered in India after a minimum of 5 years.
  • Your company’s turnover cannot exceed INR 10 billion.
  • Companies must continually innovate or improve existing systems in unique ways.
  • Your business needs to be a new idea, not a split or reorganization of an existing company.

• Step 5: Receive your Identification number
  • Once you apply for this registration, you will immediately receive your identification number. You will receive your registration certificate or certificate of establishment only after the authorities have checked all the documents you have uploaded.

Be careful while uploading your details as discrepancies can result in a hefty fine of up to 50% of the deposit amount or at least INR 25,000.

Conclusion

In conclusion, Startup Registration India is designed to foster growth and empower startups. This initiative by the Indian government simplifies the process for entrepreneurs and offers financial support, tax exemptions, and other resources. By following the steps outlined above and ensuring your company meets the eligibility criteria, you can take advantage of these advantages and focus on turning your innovative idea into a successful business.

Now, Startup Registration India can be done hazzle free with 24efiling experts.

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