Startup Registration in India

What is a Startup?

A start up is a new business that seeks to introduce innovation either through the development of new product, service or the enhancement of the old ones.

It is all about bringing creative concepts to scale and to profitable businesses capable of also providing employment and stimulating the economy.

What is Startup Registration?

Startup Registration refers to the process of registering your business with the Department of Promotion of Industry and Internal Trade (DPIIT) as a part of the initiative Startup India.

Upon registration, your company is officially listed as a Startup in the government database and qualifies in different schemes, tax breaks, and funds.

Eligibility Criteria for Startup Registration

In order to be considered a startup, your enterprise should fulfill all the following criteria:

• Company Type

Your company should be registered as one among the following:

1. Private Limited Company (under the Companies Act, 2013)
2. Limited Liability Partnership (LLP) (LLP Act, 2008).
3. Registered Partnership Firm (under the Partnership Act, 1932)

Note: Startup India may not be registered in sole proprietorships and unregistered firms.

• Age of the Company

1. The company must have a date of incorporation that is less than 10 years old.
2. In the case of biotechnology start-ups it is set at 15 years.

This helps in making sure that only new and innovative businesses are enjoying the scheme.

• Turnover Limit

1. No financial year should incur annual turnover of over 100crore since incorporation.
2. Once the revenue of your company is over 100 crore, it will cease to be a startup within the frames of this scheme.

• Innovation & Scalability

1. Develop or improve a product or process or service, OR
2. Scalable business model that has a potential of:

• • Generating employment

  • Creating wealth

Example: An eco-friendly packaging or a new AI-based application could be a company that can qualify, whereas a typical trading business may not.

• Original Entity

1. The business should also be new and not an extension of an old business.
2. This is so that only original entrepreneurs will be allowed to receive this advantage and not those who are attempting to rebrand old businesses as a startup.

• DPIIT Recognition

1. You have to apply and receive a Startup Recognition Certificate of DPIIT (Department for Promotion of Industry and Internal Trade).
2. This is a formal certificate that proves your business to be an established startup in India.

Benefits of Startup Registration

Once you are DPIIT-recognized, you can enjoy multiple government incentives:

Steps to Register Your Startup with DPIIT

The following stepwise approach will help you to be known in your start-up:

• Step 1: Incorporate Your Company

Register your business as a:

1. Private Limited Company, or
2. LLP, or
3. Partnership Firm, registered.

You would need to acquire a Certificate of Incorporation either at MCA or at the Registrar of Firms.

• Step 2: register an account in Startup India portal

1. Go to startupindia.gov.in and make your profile.

• Step 3: Apply for DPIIT Recognition

1. Fill out the online form.
2. Upload required documents such as:

• • Certificate of Incorporation

  • Information of Directors/Partners.

  • Short description of how your business is innovative.

• Step 4: Get the Startup Recognition Certificate

1. After DPIIT has approved it, a Startup Recognition Certificate would be sent to you by email.
2. It allows your startup to be registered as such according to the Startup India program of the Government of India.

Documents Required

• Certificate of Incorporation / Registration

• PAN of the Company

• Details of Directors or Partners

• Brief description of the business idea or innovation

• Proof of concept (if available) – like a website, pitch deck, patent, or prototype

Conclusion

• Startup India Registration is a platform of support by the government, tax exemptions, and fund availability.
• It is an indispensable recognition when you are an entrepreneur with a brilliant idea that you need to grow your business without legal and legal doubts.
• Your start-up can now enable significant gains by entering the eligibility criteria and seeking DPIIT recognition to make a more significant impact.

Disclaimer

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