What Is Startup India Registration?
A startup means an entity, incorporated and registered in India. An entity shall cease to be a startup:
- On completion of 10 years from the date of registration
- If the turnover of any previous year exceeds Rs. 100 crore
If you meet this basic criterion then you are eligible to get your business registered as a start-up in India.
There are many good benefits associated with a startup, Keep reading the information here to explore them all.
Benefits of Startup India Registration
1. Tax exemption
Once your company gets Startup recognition, you can further apply for Income tax exemption benefits.
2. Tender participation
In many tenders, the government and PSU give relaxation for startups to participate in public procurement jobs through tenders.
3. Government funding opportunity
The government has allotted Rs. 10,000 crores funds for investment into startups through Alternate Investment Funds. Startups can apply under this quota.
4. Participate in various government schemes
Government issues day to day various schemes for startups to participate.
Startup Eligibility Criteria
- The firm has to be a private limited company or a limited liability partnership
- The company remains a startup for the first ten years, post the date of registration. In the recent past, the Indian government changed that to 10 years from 7 years to give opportunities and tax exemptions for the companies for a longer run
- The company remains a startup if the turnover per year does not cross the Rs 100 crore mark in any of the 10 years. Once the company crosses the mark, it no longer remains eligible to be called a startup. The mark of Rs 100 crore too has been improved by the Indian government in the recent past from Rs 25 crore
- The firm should have approval from the Department of Industrial Policy and Promotion (DIPP)
- The firm should be funded by an Incubation Fund, an Angel Fund or a Private Equity Fund
- A patron guarantee from the Indian Patent and Trademark office is necessary
- You must have a recommendation letter by an incubation
- The firm must come up with innovative ideas and schemes
- All the details regarding the funding must be registered with SEBI (Securities and Exchange Board of India)
Startup India Registration Package
Presently we serve a singular package for startup India registration. This package covers everything that you would need to get your business idea registered as a startup.
- All tax identity regsitration
- Business Plan
- Banking Assistance
- Other documentary requirements
Documents for Registering a Startup in India
1. Incorporate your business
You need to incorporate your business as a Private Limited Company or a Limited Liability Partnership or a Partnership firm.
2. Register under startup India
Now you need to register your firm or company as a startup in the Startup India scheme of the government. You just need to fill the form available for you on the Startup India website.
Documents you need to upload
You have to upload all the documents in PDF format only. You need a letter of recommendation along with the registration form. You can get any one of the following recommendation letters.
- A recommendation letter from an Incubator known in a post-graduate college in India, in a format approved by the DIPP. This is regarding the innovative nature of the business; OR
- A recommendation letter from an incubator that the Government of India funds as part of any specified scheme to promote innovation; OR
- A letter from any of the Incubators, recognized by the Government of India, in DIPP format.
- A letter of funding not less than 20% in equity, by an Incubation Fund, Private Equity Fund, Angel Fund, Accelerator, Private Equity Fund, registered with SEBI that endorses the innovative nature of business; OR
- A recommendation letter by the Central or any State Government of India; OR
- A patent filed and published in the Journal of Indian Patent Office in areas affiliated with the nature of the business being promoted.
- Registration or Incorporation Certificate
- You need to upload the certificate of incorporation of your company or LLP, or the registration certificate for a partnership company.
- Brief description of your business
4. You need to mention if you need tax exemption
In India, startups do not have to pay income tax for the first three years but to avail of such benefits, the company must be certified by the Inter-Ministerial Board (IMB). This is where companies registered with DIPP get relaxation as the registration is enough to get the benefits.
5. Self-certification of the following conditions
- You are a Private limited company, an LLP or a partnership firm
- Your business must be incorporated or registered in India, not before 5 years
- Your company’s turnover must not be more than Rs 100 crore
- The company has to keep innovating something new or making the existing system better in its own way
- Your business must be a fresh idea and not a splitting up or reconstruction of an existing business
6. Get your recognition number
On the application of this registration, you will get a recognition number with immediate effect. You get the certificate of registration or incorporation only after the authority goes through all your uploaded documents.
Frequently Asked Questions (FAQs)
We know that as a new entrant into the world of business, you must be having doubts. That's why we have created this FAQ section to clarify some of them.
Can a foreign company register under the startup India hub?
Any entity that has at least one registered office in India can register itself on the hub, but for now, only Indian states are applicable for this registration.
For how long is a company recognised as a startup?
Any business entity that has completed 10 years from the date of its incorporation/registration, and has exceeded the previous years turnover of 100 crores shall stop to be a startup on completion of 10 years from the date of its registration/incorporation.