How to Start a START UP INDIA REGISTRATION

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Overview of Start-up India Registration

Start-ups are rapidly gaining popularity in India, and to foster this growth, the Government of India launched the Start-up India Scheme in 2016. The scheme was introduced to build a strong ecosystem that supports start-ups, encouraging innovation, and boosting the Indian economy. It also aims to attract talented entrepreneurs to India. The Start-up India Scheme is managed by the Department of Industrial Policy & Promotion (DIPP), Government of India, and offers several benefits such as tax incentives, credit support, and assistance for start-up funding.

The key objectives of the Start-up India Movement include:

  • Enhancing Infrastructure: Establishment of incubation centers to support the growth of start-ups.
  • IPR Facilitation: Simplified patent filing processes to protect intellectual property.
  • Increased Funding Opportunities: Providing financial support and easier access to funding.
  • Networking Database: Creating a comprehensive database to connect entrepreneurs with other stakeholders in the start-up ecosystem.

CA Anytime is a trusted legal service platform offering specialized services for Start-up India Registration. We assist with various company registrations, including OPC Registration, Private & Public Limited Company Registration, LLP Registration, Producer Company Registration, and more. With CA Anytime, you can complete your Start-up India Registration easily from the comfort of your home, with expert services tailored to your specific needs.

 
 
 

Benefits of Start-up India Registration

The Start-up India Scheme offers a range of benefits to registered start-ups in India. These advantages are designed to reduce financial barriers, facilitate growth, and enhance the overall ease of doing business. Here are some of the key benefits:

  1. Patent Cost Reduction:

    • Many start-ups in India are innovation-driven and require patent protection for their products or services. The Start-up India Scheme offers an 80% reduction in patent registration costs. Furthermore, the process for obtaining patents and related services is expedited.

  2. Special Benefits:

    • Guaranteed Funding: Start-ups are provided guaranteed funds for up to 4 years through entities like the National Credit Guarantee Trust Company (NCGTC) and SIBDI.
    • Environmental Compliance: Start-ups are only required to self-certify their compliance with environmental laws, easing regulatory burdens.
    • Exemption from Experience/Turnover Criteria: Manufacturing start-ups are exempt from prior experience or turnover requirements, although they must still adhere to quality standards and technical parameters in public procurement.
    • No Labour Law Inspections: Labour law inspections are exempted for the first year of incorporation, offering relief from administrative checks.

  3. Tax Exemption:

    • After obtaining recognition from the Department for Promotion of Industry and Internal Trade (DPIIT), a start-up can apply for tax exemptions under Section 80-IAC of the Income Tax Act. This allows the start-up to avail of tax benefits for 3 consecutive years within its first 10 years of operation.
    • Additionally, start-ups can apply for Angel Tax exemptions under Section 56 of the IT Act.

  4. Equal Opportunities for All Entrepreneurs:

    • The scheme ensures that both new start-ups and experienced entrepreneurs are given equal opportunities. Previously, public procurement norms required prior turnover or experience, but these have now been relaxed for start-ups.

  5. Simplified Registration Process:

    • Start-ups can now register through the Start-up India mobile app and upload relevant documents. This simplifies the entire process, making it easier to apply for government recognition.
    • The single-window clearance system streamlines approvals, registrations, and compliance filings.

  6. Insolvency and Bankruptcy:

    • Under the Insolvency and Bankruptcy Code 2016, a start-up can wind up its operations within 90 days of applying for insolvency, providing a quick exit option if necessary.

By offering these benefits, the Start-up India Scheme helps entrepreneurs focus on innovation and growth while navigating fewer regulatory hurdles.

 
 
 

Eligibility Criteria for Start-up India Registration

To qualify for the DPIIT Certificate of Recognition under the Start-up India Scheme, a business must meet the following criteria:

  1. Annual Turnover:

    • The business must have an annual turnover of Rs. 100 crores or less in any of the financial years since its incorporation.

  2. Entity Type:

    • The business must be registered as a Private Limited Company, Limited Liability Partnership (LLP), or a Registered Partnership Firm.

  3. Age of the Entity:

    • The entity must be considered a start-up within 10 years from its date of incorporation.

  4. Innovative & Scalable Business Model:

    • The start-up must focus on innovation or the improvement of existing products, services, or processes. It should have the potential to create employment and generate wealth.

These criteria ensure that only businesses with high growth potential and innovative models qualify for the benefits under the Start-up India Scheme.

Documents Required for Start-up India Registration

The following documents are essential for obtaining Start-up India Registration:

  1. Proof of Funding:

    • Evidence of financial backing or funding received by the start-up.

  2. Business Description:

    • A brief write-up outlining the business model, including details on innovation, the scope of products or services, and how the start-up aims to generate employment or create wealth.

  3. Certificate of Incorporation:

    • The official Certificate of Incorporation of the entity (Private Limited Company, LLP, or Registered Partnership).

  4. Website or Pitch Deck:

    • A link to the business website or a detailed pitch deck describing the start-up’s value proposition and growth potential.

  5. Identity Proof of Directors/Partners:

    • Identity proof of the company’s directors or partners (such as Aadhaar card, passport, etc.).

  6. Address Proof:

    • Proof of the registered address of the business.

  7. PAN Card:

    • A copy of the Permanent Account Number (PAN) card of the business entity.

  8. Board Resolution (For Existing Companies):

    • If the company is already established, a board resolution is required to confirm the intent for Start-up India Registration.

These documents are necessary to verify the eligibility and operational status of the start-up before it can be officially recognized under the Start-up India Scheme.

Procedure for Start-up India Registration

To obtain the DPIIT Certificate of Recognition, the entity must follow the steps outlined below:

Step 1: Business Incorporation

The first step is to incorporate the business as either a Private Limited Company, Limited Liability Partnership (LLP), or Partnership Firm. If you require assistance with the incorporation process, you can reach out to Swarit Advisors for seamless registration services.

Step 2: Register with the Start-up India Scheme

Once the business is incorporated, it must be registered under the Start-up India Scheme to obtain the Start-up India Registration Certificate.

Step 3: Application for Start-up India Recognition

Next, you can have our experts at Swarit Advisors assist you in applying for Start-up India Recognition online. We will handle the complete application process for you.

The application will include the following details:

  • Entity details: Nature of business, sector, industry, company incorporation number, and registration date.
  • Registered address of the business.
  • Authorized representative's details.
  • Information about the directors or partners.
  • Intellectual Property Rights (IPR) details.
  • Funding received by the start-up.
  • Any recognition or awards received by the start-up.

Once the application is completed, our team will submit the form along with the required documents to the relevant department for verification.

Step 4: Obtain Start-up Recognition Number

After the application is verified, we will provide you with the DPIIT Certificate of Recognition for your start-up.

Tax Exemption Benefits

Three-Year Tax Exemption

Once your start-up is recognized, you can apply for Tax Exemption under Section 80 IAC of the Income Tax Act. This allows your start-up to benefit from tax holidays for three consecutive years within the first ten years of its incorporation.

Eligibility Criteria for Tax Exemption:
  • The entity must be a recognized start-up.
  • Only Private Limited Companies and LLPs are eligible.
  • The start-up must have been incorporated after 1st April 2016.

Angel Tax Exemption

After recognition, your start-up can also apply for Angel Tax Exemption under Section 56 of the Income Tax Act.

Eligibility Criteria for Angel Tax Exemption:
  • The entity must be a DPIIT-recognized start-up.
  • The total paid-up share capital and share premium of the start-up should not exceed Rs. 25 crores after the proposed share issuance.

With these benefits, your start-up can access several incentives to help it grow and thrive in a competitive market.

Key Government Schemes for Start-ups in India

The Indian government offers several schemes to support and nurture start-ups across various sectors. Here are some of the most important ones:

  1. Venture Capital Scheme
    This scheme provides financial support in the form of interest-free loans to qualifying projects. It helps meet the shortfall in capital requirements for project implementation, specifically through the Small Farmer's Agri-Business Consortium (SAFC).

  2. Single Point Registration Scheme (SPRS)
    Under this scheme, the National Small Industries Corporation (NSIC) registers Micro and Small Enterprises (MSEs) for participation in Government purchases. It aims to increase the share of purchases from the small-scale sector by making it easier for MSEs to engage in government procurement.

  3. SIP-EIT (Support for International Patent Protection in Electronics and IT)
    This scheme provides financial assistance to MSMEs and technology start-ups to help them file international patents. The objective is to promote innovation and protect the intellectual property of Indian start-ups in the global market.

  4. Small Business Innovation Research Initiative (SBIRI)
    Launched by the Department of Biotechnology (DoB) in 2005, this scheme promotes Public-Private Partnerships (PPP) in the biotechnology sector, offering financial support for innovative research and development projects.

  5. Biotechnology Industry Partnership Programme (BIPP)
    This scheme supports collaborative research between the government and industries in the biotechnology sector. The government shares costs with industries for research in advanced technology areas with significant economic potential.

  6. Sustainable Finance Scheme
    Initiated by the SIDBI (Small Industries Development Bank of India), this scheme finances projects that contribute to energy efficiency and the development of cleaner technologies. It supports sustainable development initiatives not covered under bilateral or international credit lines.

  7. PRISM Scheme (Promoting Innovations in MSMEs)
    This scheme supports individual innovators, start-ups, and MSMEs by funding the development of new technologies and solutions. It also provides assistance to institutions working on innovative solutions for MSMEs.

  8. STP Scheme (Software Technology Park Scheme)
    Aimed at 100% export-oriented businesses, this scheme supports the development and export of computer software and professional services through communication links or physical media.

  9. Virasat – A Credit Scheme for Craftsperson
    Introduced to assist artisans and craftspersons, this scheme provides working capital and fixed capital assistance to help them meet their financial needs for business operations.

  10. Raw Material Assistance Scheme
    This scheme helps MSMEs by providing financing for the purchase of raw materials (both imported and indigenous). It ensures that MSMEs can focus on manufacturing quality products without worrying about the cost of raw materials.

  11. NSIC Infrastructure Scheme
    The NSIC Infrastructure Scheme aims to support first-generation entrepreneurs in the ICT (Information & Communication Technology) sector by helping them create commercially viable business propositions and build sustainable entrepreneurship.

  12. P&MS (Procurement and Marketing Support Scheme)
    This scheme promotes awareness about online services such as the GeM portal and helps MSMEs access new markets. It also focuses on the promotion of domestic markets and new market access initiatives for MSMEs.

  13. ISO Certification Reimbursement Scheme (ISO 14001, ISO 9000, HACCP)
    To enhance the competitive strength of MSMEs, this scheme provides financial incentives to businesses that acquire certifications like ISO 9000, ISO 14001, or HACCP. It reimburses the expenses incurred in obtaining these certifications.

  14. Financial Support to MSMEs in ZED Certification Scheme
    This scheme promotes Zero Defect, Zero Effect (ZED) manufacturing practices among MSMEs. It offers financial assistance for MSMEs to achieve ZED certification, which enhances product quality and sustainability.

  15. EPCG Scheme (Export Promotion Capital Goods Scheme)
    Aimed at exporters of electronic products, the Zero Duty EPCG Scheme allows the import of capital goods for pre-production, production, and post-production processes, helping businesses reduce costs.

  16. CGTMSE Scheme (Credit Guarantee Fund Scheme for Micro and Small Enterprises)
    This scheme was launched by the government to provide collateral-free credit to the micro and small enterprise (MSE) sector. It helps improve access to credit for MSEs without the requirement of assets as security.

These government schemes provide a broad range of financial, infrastructural, and technical support to start-ups and MSMEs, helping them scale their businesses and contribute to the growth of the Indian economy.

 
 
 

Why Choose CA Anytime for Start-up India Registration?

CA Anytime is your ideal partner for Start-up India Registration. As a leading provider of start-up registration and compliance services, we bring years of experience to help new businesses get off the ground. Our team of experts will guide you through every step of the process, ensuring a smooth and hassle-free registration under the Start-up India Scheme. With our professional support, you can get your start-up registered quickly and efficiently.