18 Feb

Startup Registration India - 7 Steps to Registering Your Startup

Startup Registration India - 7 Steps to Registering Your Startup

A startup is a newly established business, usually started by a small, 1 or group of individuals. What makes it different from other new businesses is that startups offer new products or services that are not offered in the same way elsewhere. The keyword is innovative. Businesses either develop new products/services or redevelop existing products/services.

Startup India

Startups are becoming very popular in India. To develop the Indian economy and attract talented entrepreneurs, the Government of India under the leadership of Prime Minister Narendra Modi has launched and promoted the Startup India initiative to identify and promote startups.

Steps to register your startup under Startup India

Step 1: Register your business

You must first include your business as a private limited company or partnership firm or limited liability partnership. You have to follow all the general procedures for registration of any business such as obtaining incorporation/partnership registration certificate, PAN and other required compliance.

Step 2: Register with Startup India

Then the business must be registered as a startup. The whole process is simple and online. All you have to do is log on to Startup India's website and fill out the form with your business details. Next, enter the OTP and other details sent to your e-mail, such as startup, name and startup phase as the type of user. After entering these details, the Startup India profile will be created.

Once your profile has been created on the website, startups can apply for various acceleration, incubator/mentorship programs and other challenges on the website, as well as access to resources such as learning and development programs, government schemes, state police for startups and pro-bono service

Step 3: Get DPIIT ID

The next step after creating a profile on the Startup India website is to get the approval of the Department for Promotion of Industry and Internal Trade (DPIIT). This recognition helps startups gain benefits such as access to high-quality intellectual property services and resources, relaxation of public procurement regulations, self-certification under labour and environmental laws, easy access to the company, access to funding, and tax breaks for Tax deductions on consecutive 3 years and investments above reasonable market value.

To get DPIIT recognition, click on the 'Get Recognized' button if you are a new user. If you are an existing user, click on the 'Dashboard Button' and then on 'DPIIT Recognition'

Step 4: Recognition application

The 'Recognition Application Details' page opens. Click 'View Details' under the Registration Details section on this page. Fill in the Startup Recognition Form and click on Submit.

Step 5: Documents for registration

1.     Certificate of incorporation/registration of your startup

2.     Director details

3.     Evidence of concepts like pitch deck/website link/video (in case of authentication / early traction/scaling stage startup)

4.     Patent and trademark details (optional)

5.     PAN number

Step 6: Identification number

That's all! Upon applying, you will immediately receive an identification number for your startup. A certificate of identity will be issued after checking all your documents which is usually done within 2 days after submitting the details online.

However, be careful when uploading documents. Upon subsequent verification, if it is found that the required documents have not been uploaded / incorrect documents have been uploaded or forged documents have been uploaded, you will have to pay a penalty of 50% of your startup's paid-up capital. The minimum penalty is Rs. 25,000.

Step 7: Other Areas

1.     Patents, trademarks and/or design registrations: If you need a patent for your innovation or a trademark for your business, you can easily contact any of the facilities listed by the government. You only have to bear the statutory fee so there will be an 80% reduction in the fee.

2.     Funding: One of the major challenges facing many startups is access to finance. Entrepreneurs fail to attract investors due a to lack of experience, security or existing cash flow. In addition, the high-risk nature of startups, due to their failure to draw significant percentages, has left many investors frustrated.

3.     To provide funding support, the government has set up an initial fund of INR 2,500 crore and a total fund of INR 10,000 crore over 4 years (i.e. INR 2,500 crore per annum). The fund is in the form of a fund of funds, which means it will not invest directly in startups but will participate in the capital of SEBI registered venture funds.

4.     Self-certification under Employment and Labor Law: Startups can self-certify under labour law andlabourronmental law to reduce their compliance costs. Self-certification is provided to reduce the regulatory burden so that they can focus on their core business. Startups are allowed to self-certify their compliance under six labour laws and three environmental laws for a period of 3 to 5 years from the date of establishment.

5.     As published on the website of the Central Pollution Control Board, 36 units operating in the white category industry do not require approval under 3 laws relating to the environment for 3 years.

6.     Tax Exemption: Startups are exempt from income tax for 3 years. But to get these benefits, it needs to be certified by the Inter-Ministerial Board (IMB). Startups included on or after April 1, 2016, can apply for income tax relief.

Forgiveness documents

Startup India has changed the structure since the partition. Now the previous requirements have been omitted. Just need to keep a lot of documents are forgiven. List of documents not required for registration-

      I.          Letter of recommendation

    II.          Letter of article

  III.          Sanction Letters

  IV.          Udyam Aadhaar

    V.          MSME Certificate

  VI.          GST certificate

 

Contact for registration

Santoshpatil@alltaxfin.com

97692010316

 

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