An Overview of Start-up India Registration
Nowadays, Start-ups in India are becoming very popular. In 2016, the Government of India introduced Start-up India Scheme to create a strong ecosystem for nurturing start-ups & their innovative products and to develop the Indian Economy & attracted talented entrepreneurs. Start-up India Scheme is implemented through the Department of Industrial Policy & Promotion (DIPP), Government of India. This Scheme provides tax benefits & credit support to start-ups, as well as Government help for Start-up Funding.
The following are the objectives of the Start-up India Movement:
- It enhanced infrastructure comprising incubation centres;
- IPR facilitation, including easier Patent filing;
- Increase the funding opportunities;
- Provide an extensive networking database for the entrepreneurs & other stakeholders in the Start-up ecosystem.
SwaritAdvisors is the best legal services platform for services relating to Start-up India Registration, offering a variety of Company Registration such as OPC Registration, Public & Private Limited Company Registration, LLP Registration, Producer Company Registration, Etc. Swarit Advisors will help you with Start-up India Registration from the comfort of your home, offering you services that are very specialised & designed for each individual.
Benefits of Start-up India Registration
The following are the benefits of Start-up India Registration:
- Under this Scheme, most of the Start-ups in India are Patent based. It implies they produce or gives exceptional products or services; so, for Patent Registration, they need to acquire a high cost which is recognised as the Patent Cost. In this Scheme, the Government gives an 80% reduction in Patent costs. Moreover, the procedure for Patent registration & related services are quicker for them.
- Special Benefits:
- NCGTC (National Credit Guarantee Trust Company) or SIBDI ensures guaranteed funds for over 4 years;
- Compliance related to Environmental Law is only compulsory after self-certification;
- Manufacturing business start-ups are exempted from the criteria of prior experience or turnover. However, there is no relaxation in the quality standards/technical parameters concerning public procurement;
- Labour Laws inspections shall not be carried out in the 1st year of Incorporation.
- After getting recognition from DPIIT, a Start-up can apply for Tax Exemption under Section 18 IAC of the IT Act. After getting clearance for Tax Exemption, the Start-up could avail of tax benefits for 3 consecutive Financial Years out of its first 10 years since Incorporation. Also, a Start-up might apply for tax exemption under Section 56 of the IT Act (Angel Tax).
- Equal opportunities will be provided for both start-ups & experienced entrepreneurs. Earlier, this was not possible because all the applicants required either prior turnover or prior experience. But now, public procurement norms have been relaxed for Start-ups.
- Start-up India enables companies to register via their mobile app & upload relevant documents. There will also be single-window clearance for approvals & registrations & filing compliance, among other things.
- As per the Insolvency & Bankruptcy Code 2016, the Company can be wound up within 90 days of applying for Insolvency.
Eligibility Criteria for Start-up India Registration
The start-up must meet the following eligibility criteria to avail of the DPIIT Certificate of Recognition:
- Annual Turnover: To obtain a DPIIT Certificate of Recognition for Start-up, the Firm should have an annual turnover of Rs. 100 crores for any of the Financial Years since its Incorporation.
- Entity Type: This Certificate is provided for the Company, which is registered as a Private Limited Company, Limited Liability Partnership or a registered Partnership Firm.
- Existence of Entity: An entity in India shall be considered a Start-up up to 10 years from the date of its Incorporation.
- Innovative & Scalable Entity: The Start-up should be working towards innovation or improvement of existing products, services & processes & should have the potential to generate employment and create wealth.
Documents Required for Start-up India Registration
Following is the list of crucial documents required for Start-up India Registration:
- Proof of Funding: In this case, proof of funding is required to get the Start-up India Registration Certificate.
- Business Description: Write-up a brief description of the business. Details of how a start-up is working for innovation, the scope of products & services, and scalability in terms of employment generation or wealth.
- Certificate of Incorporation: This Certificate of any entity is required for Start-up India Registration.
- Website or pitch deck;
- Identity proof of the Director or Partners;
- Address proof;
- PAN Card;
- In the case of existing companies, provide resolution for Start-up Company Registration under Start-up India Scheme.
Procedure for Start-up India Registration
The entity should follow the below-mentioned steps to get the DPIIT Certificate of Recognition:
Step 1: Incorporation of the Business: First, the entity must incorporate the business as a Private Limited Company or a Limited Liability Partnership or a Partnership firm. You can contact Swarit Advisors to register your Company without any hassle.
Step 2: Registering your Business with Start-up India Scheme: Then, the business needs to be registered with this Scheme to get a Certificate of Recognition or Start-up India Registration Certificate.
Step 3: Apply for Start-up India Registration through Our Experts: Then, our experts at Swarit Advisors will apply for Start-up India Recognition online to get the Recognition Certificate for your Start-up.
Our experts will provide the following details in the Start-up Recognition application:
- Details of the entity such as nature of the entity, sector, Industry, categories & Company Incorporation Numbers & Registration Date;
- Complete address of the entity;
- Details of the authorised representative;
- Directors or Partner details;
- Details of IPR;
- Details of funding;
- Recognition received by the entity.
After filing the application, our experts will submit the application form along with documents to the Department for verification.
Step 4: Get the Start-up Recognition Number: Once all the above steps are completed successfully, our experts will send you the DPIIT Certificate of Recognition for Start-ups.
Three Year Tax Exemption
Post Recognition, a Start-up may apply for Tax Exemption under Section 80 IAC of the IT (Income Tax) Act. Post getting clearance for Tax Exemption, the Start-up can avail of tax holidays for 3 consecutive years out of its first 10 years since Incorporation.
The following are the eligibility criteria for applying for Income Tax Exemption:
- The entity should be recognised Start-up;
- Only LLP or Private Limited Company is eligible for Tax Exemption under this Section;
- The Start-up should have been registered or incorporated after 1st April 2016.
Angel Tax Exemption
Post recognition, a Start-up may apply for Angel Tax Exemption. The Eligibility criteria for tax exemption under Section 56 of the IT Act (Angel Tax):
- The entity should be a DPIIT recognised Start-up;
The aggregate amount of paid-up share capital & share premium of the Start-up after the proposed issue of a Share, if any, doesn’t exceed Rs. 25 crores.
Some Important Government Schemes for Start-ups in India
Following are some Government Schemes for Start-up in India:
- Venture Capital Scheme: This Scheme is for financial support in the form of an interest-free (0%) loan provided by the SAFC (Small Farmer's Agri-Business Consortium) to qualifying projects to fulfil the shortfall in the capital requirement for the project implementation.
- Single Point Registration Scheme: The Government of India is the single largest buyer of various goods or products. To increase the share of purchases from the small-scale sector. NSIC registers MSEs under the Single Point Scheme (SPRS) for participation in Government purchases.
- SIP-EIT: Support for International Patent Protection in Electronics and Information Technology is a scheme to provide financial support to MSMEs and Technology start-up units for International Patent Filing to promote innovation & recognise the value & capabilities of global Intellectual Property along with capturing growth opportunities in the ICTE sector.
- Small Business Innovation Research Initiative (SBIRI): This Scheme of the Department of Biotechnology (DoB), Ministry of Science & Technology, was launched in 2005 to boost PPP or Public-Private-Partnership efforts in the country.
- Biotechnology Industry Partnership Programme or BIPP: This is a Government Partnership with industries or businesses for support on a cost-sharing basis for path-breaking research in frontier advanced technology areas having major economic potential & making the Indian Industry globally competitive.
- Sustainable Finance Scheme: The SIDBI has introduced this Scheme for funding sustainable development projects that contribute to energy efficiency & cleaner products but are not covered under Bilateral or International lines of credit.
- PRISM Scheme: Promoting Innovations in Individuals, Start-ups & MSMEs Scheme aims to support individual innovators, which will enable them to achieve the agenda of comprehensive development. It would also provide support to institutions or organisations set up as Autonomous organisations under a specific status or as a Society incorporated under the Societies Registration Act, 1860/Indian Trusts Act, 1882, leading to the development of state-of-art new technology solutions aimed at helping MSMEs.
- STP Scheme or Software Technology Park Scheme: This Scheme is a 100% Export Oriented Scheme for the development & export of computer software, including the export of professional services using communication links or physical media.
- Virasat – A Credit Scheme for Craftperson: This Scheme was introduced to help Artisans & Craftsperson in meeting their working capital & fixed capital requirement.
- Raw Material Assistance Scheme: This Scheme aims at aiding MSMEs by way of financing the purchase of Raw Materials (both imported and original). This allows MSMEs to focus better on manufacturing quality products.
- NSIC Infrastructure Scheme: This Scheme aims at creating sustainable entrepreneurship development in the area of ICT (Information & Communication Technology), especially for 1st generation entrepreneurs, by providing innovative ideas for commercially viable business prepositions.
- P&MS: P&MS or Procurement & Marketing Support Scheme would promote & educate MSMEs by organising awareness programs or trade fairs about online services, GeM portal, and other services. This Scheme also promotes MSEs to develop domestic markets & finds new ways to promote new market access initiatives.
- ISO 14001 or ISO 9000 Certification Reimbursement: To enhance the competitive strength of Small and Medium Enterprises, the Scheme provides financial incentives to those enterprises which have acquired ISO 9000 or ISO 14001 or HACCP Certification via reimbursement of the expenditure incurred.
- Financial Support to MSMEs in ZED Certification Scheme: ZED Certification Scheme promotes ZED or Zero Defect & Zero Effect manufacturing amongst MSMEs and ZED Assessment for their Certification.
- EPCG Scheme: The Zero Duty EPCG Scheme is for exporters of electronic products. This EPCG Scheme allows the import of capital goods or products for pre-production, production, and post-production.
- CGTMSE Scheme: Credit Guarantee Fund Scheme for Micro & Small Enterprises (CGS) was launched by the Indian Government to make available collateral-free credit to the MSE sector.
Why Choose Swarit Advisors for Start-up India Registration?
Swarit Advisors is the perfect choice for your Start-up India Registration. We are a leading company with years of experience providing start-ups registrations and compliance services. We have a team of professionals who can guide you through the entire process & help you get registered under the Start-up India Scheme easily & quickly.
Frequently Asked Questions
The companies are eligible to get recognised, which gives access to tax benefits & easier compliance, IPR fast tracking & more.
DPIIT or the Department for Promotion of Industry & Internal Trade and grants the Start-up recognition certificate based on certain conditions.
For the period of 10 years from the incorporation date up to the turnover of Rs. 100 crores in any financial year.
Yes, a Foreign Company can register under the Start-up India hub. For Registration, the Company should have a permanent establishment in India to be eligible.
Yes, you can apply for more than one incentive under the Start-up India Scheme.
Yes, it is mandatory for businesses that are eligible to be recognised as Start-ups.
Indeed, as per the Law, a current entity or Company can register itself as a Start-up, given that it meets the recommended standards for a Start-up. They will likewise have the option to profit from different duty and IPR benefits that are accessible to new companies.