The positive news is that India is quickly becoming a startup-friendly nation, making the startup registration process easier and more accessible. Registering a startup is no longer a time-consuming or complicated task. If you are an aspiring entrepreneur seeking assistance on how to register a startup in India, this guide will definitely be helpful.

 

What are the Startup Eligibility Criteria for Any Business?

 

To begin the Startup India registration process, your small business must satisfy specific requirements and eligibility criteria. To register as a startup, the entity must meet the following criteria, thereby enjoying tax benefits, relaxed compliance, and other advantages.

 

• The period of existence and operations of your business should not be older than 10 years from the date of registration.

• The annual revenue must not exceed Rs. 100 crores in any of the 10 years it is eligible to be considered a startup.

• Your business should not be a part of an existing entity or a split from an existing organization.

• Your business’s vision should focus on developing or improving an existing product/service, with a scalable business model that generates revenue and promotes job opportunities.

• The business must be registered as a pvt.ltd company near , registered partnership, or limited liability partnership.

• Your business should have received funding from an investment team (such as angel investors, incubation programs, or equity funds) and must have a recommendation letter from them.

• You must secure approval from the DIPP commission (Department of Industrial Policy and Promotion).

 

By meeting these requirements, your company can be recognized as a startup and gain DPIIT recognition.

 

Process on How to Register a Startup in India and the Legal Requirements

 

This section will guide you through the process of registering a startup in India and outline the necessary legal requirements.

 

1. Application for the Incorporation of Company 

• Gather the List of Documents Required for Startup Incorporation in India

 - Before incorporation, decide on a business structure: a private company limited, partnership, or LLP act.

 - Apply for PAN and TAN by submitting Form 49A for PAN and Form 49B for TAN.  

 - Valid identification and address proof for all directors and shareholders.

 - Passport-size photographs of all directors and shareholders.

 - Other forms filled out for name reservation and obtaining DIN, along with the company incorporation form.

 - Once you have all the documents, fill out the SPICe form online through MCA’s online platform.

 - Upon successful submission, you will receive a certificate of incorporation, which proves the existence of your business.

 - This certificate includes your company’s identification number, director identification number, and PAN.

 

• Fee Waiver Policies for Registering Your Company as a Private Limited Company

 - For small companies, the registration fee is waived if the authorized capital is less than INR 15 lakhs.

 - For capital ranging from INR 15 lakhs to INR 50 lakhs, the registration fee is set at INR 2000. For companies that do not qualify as small, the fee is INR 36,000.

 - However, there are limitations to this fee waiver policy. The registered company cannot raise funds for one year from the date of incorporation, and the waiver does not apply to stamp duty costs.

 

• Post Incorporation Tasks

 - Open a corporate bank account.

 - Register for social security with the Ministry of Labor and Employment, if applicable.

 

2. Startup India Program

 

This section provides a comprehensive guide on how to register a startup in India under the Startup India Program.

 

• What is the Startup India Program?

 - The Startup India Program is a flagship initiative by the Indian government aimed at fostering a supportive and inclusive environment for entrepreneurs. Overseen by the Ministry of Corporate Affairs (MCA) and the Department for Promotion of Industry and Internal Trade (DPIIT), the program is designed to streamline regulations for small and medium-sized businesses. Those who successfully register their startups can also benefit from patent protection, tax incentives, and various relaxations. Additionally, the program hosts incubation and accelerator programs, providing workshops on various entrepreneurship topics.

 

• How to Register a Startup in India Under the Startup India Program?

- The initial step is to incorporate your company as a startup, which can be accomplished online within minutes.

- Visit the Startup India Registration Page: Go to the Startup India registration page and sign up using your name, email address, and a strong password.

- Confirm Your Account: Confirm your account by entering the OTP sent to your email or mobile number.

- Complete the Registration Process: Follow the prompts to complete the registration process.

 

Once registered, you can access incubation and learning programs and apply for government schemes.

 

• Documents Required

- Incorporation Certificate: Downloaded from the website.

- Authorization Letter: Issued by one of your firm’s representatives.

- Business Plan Proof: Such as a pitch deck, presentation, or website link.

- Proof of Funding: If already obtained.

- List of Patents and Trademarks: If applicable.

- PAN Number: Essential for financial transactions.

- Previously, additional documents like recommendation letters, sanction letters, Aadhar, and GST registration certificates were required, but these have been waived to simplify the process.

 

• Get DPIIT Recognition

- Following the Startup India registration process, the next step is to obtain recognition from DPIIT, which is the Department for Promotion of Industry and Internal Trade.

- Eligible for tax exemption up to 3 years from the registration date, as per Section 56 of the Income Tax Act.

- Intellectual Property tax Services: Exclusive access.

- Funding Assistance: From investors.

- Relaxed Procurement Norms: Less stringent public procurement norms.

-To apply for DPIIT recognition, log in to the Startup India website, click on ‘DPIIT recognition for startups,’ then ‘Get recognized.’ provide the necessary documents, agree to the terms and conditions, and complete the startup registration form for India.

-If you upload incorrect or illegitimate documents, you may have to pay a fine of 50% of your startup’s paid-up capital amount (with a minimum fee of INR 25,000).

 

• Receive Your Recognition Number

-  After registering your startup on the Startup India platform, you will receive a unique recognition number.

- Your application will be reviewed by the Startup India team within two days, and they will issue your recognition number.

 

• Tax Exemption Declaration

- Once you have completed the startup registration process and fulfilled all requirements, you can declare your startup for tax exemptions and other benefits.

 

Advantages of Registering Your Startup Under the Startup India Program

 

Registering your startup with the Startup India Program unlocks a plethora of benefits that can significantly enhance your business growth and sustainability. Discover the numerous benefits:

 

• Tax Benefits

                Tax Exemptions: Eligibility for save tax in india exemption for up to 3 years from the registration date, as per Section 56 of the Income Tax Act. This can offer vital financial relief during your startup's early stages.

 

• Intellectual Property Assistance

               Intellectual Property Support: Exclusive access to intellectual property services, including assistance with patent filing, trademark registration, and copyright protection. This ensures your innovative ideas and products are safeguarded.

 

• Funding Opportunities

               Enhanced Funding Prospects: Increased opportunities to secure funding from investors. The program facilitates connections with potential investors, making it easier to acquire the capital needed to scale your business.

 

• Procurement Advantages

                Relaxed Procurement Norms: Less stringent public procurement norms, allow your startup to compete more effectively for government contracts and tenders, thereby opening up new revenue avenues.

 

• Incubation and Acceleration

               Incubation and Accelerator Programs: Access to incubation and accelerator programs that provide mentorship, networking opportunities, and resources to aid in your startup's growth and success.

 

• Workshops and Training

               Training and Development: Opportunities to participate in workshops and training sessions covering various entrepreneurship topics. These sessions offer valuable insights and skills to navigate the business world effectively.

 

• Regulatory Simplification

              Simplified Regulations: Streamlined regulations for small and medium enterprises, aiming to reduce bureaucratic hurdles and make it easier for startups to operate and expand.

 

• Official Recognition

             Unique Recognition Number: Receipt of a unique recognition number after your application is reviewed by the Startup India team. This number serves as an official validation of your startup's status and can be used for various government schemes and benefits.

 

By leveraging these advantages, your startup can gain a competitive edge, access critical resources, and accelerate its growth trajectory. Seize the opportunities offered by the Startup India Program. Register your startup now and pave the way for your success.

 

Disclaimer

 

The information provided in this blog is purely for general informational purposes only. While every effort has been made to ensure the accuracy, reliability and completeness of the content presented, we make no representations or warranties of any kind, express or implied, for the same. 

 

We expressly disclaim any and all liability for any loss, damage or injury arising from or in connection with the use of or reliance on this information. This includes, but is not limited to, any direct, indirect, incidental, consequential or punitive damage.

Further, we reserve the right to make changes to the content at any time without prior notice. For specific advice tailored to your situation, we request you to get in touch with us.