What do you need to start a business? Three simple things: know your product better than anyone, know your customer, and have a burning desire to succeed. Startups are becoming very popular in India. In order to develop Indian economy and attract talented entrepreneurs, the Government of India, under the leadership of PM Narendra Modi, has started and promoted Startup India initiative to recognize and promote startups.
An entity shall be considered as a Start-up:
> If it is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India;
> Not prior to seven years, however for Biotechnology Startups not prior to ten years,
> With annual turnover not exceeding INR 25 crore in any preceding financial year, and
Working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation
Provided that such entity is not formed by splitting up, or reconstruction, of a business already in existence. Provided also that an entity shall cease to be a Startup if its turnover for the previous financial years has exceeded INR 25 crore or it has completed 7 years and for biotechnology startups 10 years from the date of incorporation/ registration. Provided further that a Startup shall be eligible for tax benefits only after it has obtained certification from the Inter-Ministerial Board, setup for such purpose.and Upto seven years from the date of its incorporation/ registration;
PROCESS OF RECOGNITION
The process of recognition as a 'Start-up' shall be through an online application made over the mobile app/ portal set up by the Department of Industrial Policy and Promotion. Entities will be required to submit the online application along with the Certificate of Incorporation/ Registration and other relevant details as may be sought. Start-ups also have to submit a write-up about the nature of business highlighting how is it working towards innovation, development or improvement of products or processes or services, or its scalability in terms of employment generation or wealth creation.
BENEFIT OF REGISTRATION
> SELF CERTIFICATION and compliance under 9 environmental & labour laws.
> INR 10,000 CRORE FUND of funds for investment into Start-ups through Alternate Investment Funds.
> START-UP PATENT APPLICATION fast track & up to 80% rebate in filling patents.
> INR 2,000 CRORE CREDIT guarantee fund for Start-ups through National Credit Guarantee Trust Company / SIDBI over 4 years.
> PUBLIC PROCUREMENT fast track under the criteria of 'prior experience/turnover' for Start-ups in all Central Government ministries/departments.
> WINDING UP COMPANY in 90 days under insolvency & Bankruptcy code 2016.
> TAX EXEMPTIONS on capital gains & on Investments above Fair Market Value.
> TAX EXEMPTIONS on Income tax for 3 years (Start-ups are exempted from income tax for 3 years. But to avail these benefits, they must be certified by the Inter-Ministerial Board (IMB). Start-ups recognized by DIPP, Govt. of India can now directly avail IPR related benefits without requiring any additional certification from IMB.)
INFORMATION AND DOCUMENTS REQUIRED FOR THE APPLICATION / RECOGNITION
1. Entity Details
2. Full Address (Office)
3. Authorized Representative Details
4. Director(s) / Partner(s) Details
5. Information Required -
- Current number of employees (including founders)
- What is the current stage of development of your product / service?
- Has your start-up applied for any IPR (Intellectual Property Right) ?
- Is the start-up creating an innovative product / service / process or improving an existing product / service / process*
- Is the start-up creating a scalable business model with high potential of employment generation or wealth creation?
SIMPLE STEPS TO RECOGNITION / REGISTER YOUR START-UP IN START-UP INDIA PORTAL
1. You must first incorporate your business as a Private Limited Company or a Partnership firm or a Limited Liability Partnership.
2. Visit Start-up India Recognition portal for Register with Start-up India.
3. Provide the information Like Organization details, full address of the registered office and List of Directors/ Partners etc.
4. Upload PDF documents:
(a) A letter of recommendation/support
A letter of recommendation must be submitted along with the registration form. Any of the following will be valid-
(i) A recommendation (regarding innovative nature of business) from an Incubator established in a post-graduate college in India , in a format specified by the Department of Industrial Policy and Promotion (DIPP); OR
(ii) A letter of support by an incubator, which is funded (in relation to the project) by Government of India as part of any specified scheme to promote innovation; OR
(iii) A letter of recommendation (regarding innovative nature of business), from an Incubator, recognized by the Government of India in DIPP specified format; OR
(iv) A letter of funding of not less than 20% in equity, by any Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel Network, duly registered with SEBI that endorses innovative nature of the business; OR
(v) A letter of funding by Government of India or any State Government as part of any specified scheme to promote innovation; OR
(vi) A patent filed and published in the Journal by the Indian Patent Office in areas affiliated with the nature of the business being promoted.
(b) Incorporation/Registration Certificate
You need to upload the certificate of incorporation of your company/LLP (Registration Certificate in case of partnership)
(c) Description of your business in brief
A brief description of the innovative nature of your products/services.Answer whether you would like to avail tax benefits or not Self-Certification Accept the Terms & Conditions and Submit. Start-up India Team send Certificate after verification of information and documents.
5. Answer whether you would like to avail tax benefits or not
6. Self-Certification Accept the Terms & Conditions and Submit.
7. Start-up India Team send Certificate after verification of information and documents
Legal Svidha Providers is a Team of CAs, CSs, CMAs and Lawyers who can assist you in the Registration of your Business at the Startup India portal and make you fully Compliant starting from the Entity Registration to the Registration at Startup India Platform and will make your Business eligible to avail various Tax Benefits and Exemptions. You can contact us at [email protected] or you can call us at 09599937963, 08130645164.
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