Startup- Meaning, Registration, Benefits

Last Updated On: May 10, 2021, 10:19 p.m.
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STARTUP-MEANING, REGISTRATION, BENEFITS

MEANING:

Startup is a name which can be given to a form of business whether Partnership, LLP or a private company which is started by some young people having unique ideas and intending to convert such ideas in developing any unique product or service for society.

Other features through which Startup meaning can be explained are that In their initial stage of business, they have lack of funds and so search for Prospective investors who can invest in their business.

Features

1. Products or services to be provided have distinctive qualities and features.

2. Entrepreneurs intending to start it have a lack of funds.

3. Doesn’t have a well developed business model.

 

 

DPIIT RECOGNITION:

Startup is a name which can be given to a form of business whether Partnership, LLP or a private company which is started by some young people having unique ideas and intending to convert such ideas in developing any unique product or service for society.

Other features through which Startup meaning can be explained are that In their initial stage of business, they have lack of funds and so search for Prospective investors who can invest in their business.

Features

1. Products or services to be provided have distinctive qualities and features.

2. Entrepreneurs intending to start it have a lack of funds.

3. Doesn’t have a well developed business model.

4. Annual Turnover of a business must not exceed 100 crore for any financial year since incorporation.

 

Note-

It must not be formed due to reconstruction or splitting up of an existing business.

 

DPIIT Recognition Process

(a) Documents required 

Following documents are required to get recognised as a startup-

  • Entity’s PAN No.
  • Certificate of Incorporation/ Registration
  • Director details
  • Patent, Copyright and trademark details (Optional)
  • Proof of concept like pitch deck/ Website link/ video( In case of Validation/Early traction/scaling stage startup)

Note-

Proof of concept not required if startup is at idea stage, it may be updated later on.

 

(b) Startup Recognition 

Application can be made online through mobile app or DPIIT Portal.

There are 3 steps to complete registration-

Steps to complete Startup Recognition 

Step 1: Register with Startup Site 

First you need to register an account on Startup India website using link www.startupindia.gov.in For this you are required to fill some details like Name, E-mail Id, Mobile Number and Self by created password or you may register using your Google, Twitter, Linked In or facebook.

Step 2: Business profile registration

After this, you are required to create your business profile by selecting the Startup option after logged in to your account.

Fill following details to be provided to complete your registration process-

  • Mandatory details
  • Entity/Company’s logo
  • Startup name
  • E-mail ID, State, City,
  • Stage of Startup- Ideation, Validation, Early Traction, Scaling
  • Business activities in brief
  • CIN No., Nature of Entity (Pvt. Company, LLP, Registered Partnership)
  • Industry, Sector, Services
  • Whether a startup is interested in Investors, Incubators, Mentors, Accelerators, Other startups ?
  • Optional details
  • Whether a startup is funded or bootstrapped?
  • Mobile No., Website, Mobile App Link
  • Udyog Aadhaar

Step 3: DIPP Recognition

Now, after you have created your Business Profile, you can proceed further to apply for DIPP Recognition.

 

For this, you are required to fill following details-

1. Entity details- Nature of Entity, Industry, Sector, Categories, CIN, PAN No.

2. Full Address (Office)- Address must be same as provided while registering your entity under Respective acts

3. Authorized representative details- Name, E-mail Id, Mobile No., Designation,

4. Directors/ Partners details- Number of Directors/ Partners, Name, E-mail Id, Phone No., Gender, Address

5. Information required- Current no. of employees (including founders), Startup Stage (Ideation, Validation, Early Traction, Scaling)

6. Has your startup applied for any IPR(Intellectual Property Rights)?

7. Does it create any innovation of product/ service? (Brief Note to be provided)

8. Does it lead to employment generation or/ and wealth creation? (Brief Note to be provided)

9. Has your startup received funding?

10. Startup details- Awards/ Recognition received(if any), Problem the startup is solving and how it proposes to solve it, uniqueness of solution ( in brief), how your startup proposes to generate revenue ( in brief).

11. Self certification-Attach Certificate of Incorporation/ Registration Certificate (Must be in pdf, png, jpg format) and Not to exceed 5 MB), Website Link/Videos/ Pitch deck/ Patents/ Others and certify that Eligibility criteria met by startup.

 

Time limit for receiving Startup Recognition certificate 

Within 15 days, your recognition application would be accepted and a Recognition Certificate would be granted or it would be marked for editing.

There are 3 chances given to edit an application, after which you need to resubmit the application.

It ceases its recognition on completing 10 years of Incorporation or if its turnover  exceeds 100 crore in any previous yea

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