STARTUP REGISTRATION

Startup India, initiated by the Government of India is a flagship initiative launched in January 2016. This initiative is taken by the government of India to boost the ecosystem for supporting innovation and startups in India. Through this scheme, the government is looking forward to driving sustainable economic development and enhances employment opportunities in India. The government of India recently announced Startup India action plan to meet the requirements of this initiative.

Conditions for recognition as a ‘Start-up’
To get recognised as a Start-up under the Startup India Scheme, a business entity must full fill the following conditions:

1. The business must be registered must be registered as a

Private Limited Company under Companies Act, 2013
Limited Liability Partnership under the Limited Liability Partnership Act, 2008
Partnership Firm under the Partnership Act, 1932
2. The turnover of business for any of the financial years since incorporation/ registration has not exceeded Rupees 25 crores

3. The Business is 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

4. The business will be recognized as Start-up is for a period of 7 years from the date of its incorporation/ registration; however, in the case of Start-ups in the biotechnology sector, the period shall be up to ten years from the date of its incorporation/ registration. Any entity formed by splitting up or reconstruction of a business already in existence shall not be considered a ‘Start-up’.

Benefits for recognised ‘Start-up’
As per the guidelines of DIPP, a recognized start-up gets the following benefits:

Self-Certification: For Compliance under 9 environmental & labor laws
Tax Exemption: Income Tax exemption for a period of 3 consecutive years and exemptions on capital gains & investments above Fair Market Value.
Easy winding up of company: Within 90 days under insolvency & Bankruptcy code 2016.
Startup Patent Application and IPR protection: Fast track & up to 80% rebate in filling patents.
Easier Public Procurement Norms: Exemption on EMD and minimum requirements. Get listed as a seller
SIDBI Fund of Funds: Funds for investment into startups through Alternate Investment Funds.

DOCUMENTS REQUIRED FOR STARTUP REGISTRATION

1. Incorporation/Registration Certificate of your startup
2. Details of the Directors
3. Proof of concept like pitch deck/website link/video (in case of a validation/ early traction/scaling stage startup)
4. Patent and trademark details (Optional)
5. PAN Number