Startup India is a scheme introduced by the Indian government to help entrepreneurship flourish all over the country. By providing financial aid and creating job opportunities, The scheme aims at boosting the progress of entrepreneurship in India. This scheme was first introduced on 15th August 2015 by Mr. Narendra Modi, Prime Minister of India.
Benefits of the Startup India Plan:
Below listed are some of the benefits of a startup India introduced by the Government of India:-
- With nine labor laws and environmental laws, the startups will be allowed only to self-certify compliance. Also, inspections will not be carried out for a duration of three years, in the case of the labor laws,
- The companies can register in startup India program via mobile application by uploading all necessary documents required for the registration process. Not only this, the clearances for filing compliances, several approvals and registrations can be done single-handedly too.
- The process of filing patents is made easier and well simplified for startups. And a rebate of 80% will be allotted to the Startup in the patent application. The facilitator fees will be upon the government, while the startup has to bear only the statutory fees.
- The program sets up seven new research parks for motivating and encouraging research and innovation among the students who aim to become an entrepreneur, by providing several schemes and facilities in the R&D section.
- Startups and well-experienced entrepreneurs will be given priority, which was not possible earlier. This was because the applicants have very less or insufficient experience and turnover. But it was the past, now the public appropriation norms are made more flexible and simplified for startups and entrepreneurs.
How can a startup be established in India?
One can establish a startup and register under Startup India by providing or uploading relevant documents and by following the procedure or process as explained down below.
Process of registration under Startup India Scheme:
Step 1: Incorporating the business:
First, the business has to be made a legal entity by incorporating itself as a Private Limited Company or a Limited Liability Partnership or a Partnership firm. After incorporating the firm, several registration & certificates are required to be obtained, like GST Registration, Shop & Establishment, Profession tax, TAN and PAN, PF and ESIC, Etc.
Step 2: Register with Startup India portal:
Next, you can register your business as a startup by Log On to the Startup India website i.e. https://www.startupindia.gov.in by filling the registration form with all details and credentials of your business and by providing all the necessary documents, which should be uploaded in PDF format only. The list of documents need to be uploaded are as follows:
Step 3: Documents to be Uploaded:
a) A letter of support or recommendation:
Along with the recommendation form, a letter of recommendation is also required. It should be any one of the below shown,
- As specified by the Department of Industrial Policy (DIPP), a letter of recommendation (regarding the firm’s innovative nature) in the specified format, has to be submitted along with registration form, from an incubator being established in a post-graduate college in India. Or else,
- As specified by the Government of India, a letter of support from an incubator, being funded (in relation to the project) will be enough. Or else,
- A letter of recommendation from an incubator recognized by the government in a format specified by the Department of Industrial Policy (DIPP). Or else,
- A letter of funding by an incubation Fund/Private Equity Fund/ Accelerator/Angel fund/ Angel Network with minimum 20% in equity, endorsing the innovative nature of the business and registered duly with the SEBI. Or else,
- As a part of some specified scheme initiated to promote and support innovation, a letter of funding by any State Government or the Government of India.
- By the Indian Patent Office, a patent filed and also published in the journal, in the areas which are affiliated or related with the nature and scope of the business being promoted.
b) Registration/Incorporation Certificate.
The certificate of incorporation of the company/partnership firm/private limited company is then required to upload (in PDF format only).
c) Description of your business in brief.
A brief description showing how innovative your products and services are must be provided. Don’t ever forget that the product should necessarily be original, innovative in nature and must feature some new methods or remaking of any old methods or processes. Especially if you are looking for income tax exemption for three years.
Step 4: Determination for availing tax benefits:
The startups are exempted for a duration of 3 years or more from any income tax payment. Startups only after certifying by the Inter-Ministerial Board (IMB) can enjoy this benefit or advantage. Moreover, the Intellectual Property Rights (IPR ) related benefits can only be obtained after just getting recognized by Government of India and DIPP, without needing any additional certification from IMB. Then just clicking “Yes”, you can share the application with the Inter-Ministerial Board.
Step 5: Make sure that you have satisfied the following conditions:
- Registration of your company as a legal entity, in the sense a Partnership firm, Limited Liability Partnership or a Private Limited Company.
- Registration or Incorporation of your business should not be done in India before five years.
- The yearly turnover must not be more than 25 crores.
- The business must be carrying out significant upgrading of technology and always Innovating something new and original.
- The new startup business must not be a remake or reconstruct of any old or existing business.
Step 6: Getting your recognition number:
The recognition number will be received, once all of your documents are examined and the certificate of recognition is assigned. One must be careful while uploading the documents. As if any wrong document is uploaded or any essential document is not uploaded or any document is found out not to be genuine, then a fine of 50% of paid-up share capital of the startup with a fine not less than 25,000 will be charged upon the applicant. That’s why it is always advised to upload all the documents in the mentioned format and very carefully after due consultation.
As above, we have seen the process of establishment of a startup and the registration process of the startup under the Startup India Programme along with various benefits allotted by the scheme too. This campaign highly supports the economic growth of the country by invoking several potential startups and aspiring entrepreneurs across the country. As a result of which, many shining entrepreneurs and startups are now coming up in the light. Anyways, that was the registration process and some benefits we saw regarding Startup India. Even so, if you have any doubts or questions in your mind about this, then happily contact us through the comments as below.