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Answer these questions to get DIPP recognition for your startup:
  • What is the problem that the startup is attempting to solve?
  • How does the startup plan to address this issue?
  • What distinguishes the startup's solution from others?
  • How does the company make money?
  • A list of any honours or distinctions the startup has received.
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Startup Recognition by DIPP

An Overview- Startup India Registration and Benefits

Startup India scheme was launched on 16th January 2016 by Prime Minister Narendra Modi. It was started to make a fast growing startup ecosystem for innovators and entrepreneurs. The main objective of Startup India scheme is to promote jobs, wealth and new ideas of development.

Startup India registration has a lot of benefits. Government is also providing three years tax benefits to empower startups. Government is also providing Startup India loans with interest relaxation. Startup India registration can be processed online.

For startup India registration, you should have an unique and effective business idea. Government is also providing many startup India benefits like less compliances, rebate on patent fee, tax exemption for three tax years etc. Government is making a startup India hub for entrepreneurs and new innovators.

Startup India Scheme is a flagship initiative to raise employment and wealth in the country. Government of India is providing an online service of startup India registration at startup India portal.

Definition of Startup Under Startup India Initiative

Your company must meet the following criteria to be considered eligible for DPIIT startup recognition:-

  • Period of existence and operations should not be exceeding 10 years from the Date of Incorporation.
  • Incorporated as a Private Limited Company, a Registered Partnership Firm or a Limited Liability Partnership.
  • Should have an annual turnover not exceeding Rs. 100 crore for any of the financial years since its Incorporation.
  • Entity should not have been formed by splitting up or reconstructing an already existing business.
  • Should work towards development or improvement of a product, process or service and/or have scalable business model with high potential for creation of wealth & employment.

Benefits Available to Startup Recognised under Startup India Scheme

There are a lot of benefits provided by the government of India under Startup India Scheme. To avail these benefits, it is required to be recognised as a startup entity by DPIIT (Department of Promotion of Industrial and Internal Trade). The benefits of Startup India registration are-

Income Tax Exemption

For the first 10 years after incorporation, eligible startups can be exempted from paying income tax for three years in a row.

Self Certification

Through a simple online procedure, startups will be able to self-certify compliance with six labour laws and three environmental laws. For a period of five years, no inspections of labour regulations will be carried out. Startups may be inspected only if the inspecting officer received a genuine and verifiable allegation of violation, which must be presented in writing and authorised by at least one level above the examining officer.

Tax Benefits on Investment

Accredited Investors, Non-Residents, AIFs (Category I), and listed businesses having a net worth of more than 100 crores or a revenue of more than INR 250 crores are excluded from paying taxes on investments in qualifying startups under Section 56(2)(VIIB) of the Income Tax Act. Up to a ceiling of INR 25 crore, consideration of shares received by qualifying startups will be excluded.

Simply Winding up for the Company

Startups with basic debt structures, or those that fulfil specific income defined criteria*, can be wound up within 90 days of filing an insolvency application, according to the Insolvency and Bankruptcy Code of 2016.

Startup Patent Application

Under this scheme, the Central Government will pay the facilitators' total fees for whatever number of patents, trademarks, or designs that a Startup files, leaving the Startups to pay just the statutory fees.

Public Procurement Norms Relaxation

Recognized by DPIIT Startups may register as vendors on GeM and offer their products and services to government agencies directly. Startups in the manufacturing industry will be excluded from the "previous experience/turnover" requirement without compromising the stated quality standards or technical characteristics. While filling out government bids, entrepreneurs recognised by the DPIIT have been excused from submitting an Earnest Money Deposit (EMD) or bid security.

SIDBI Funds

To support the government's entrepreneurship strategy by providing indirect funding to developing start-ups through Venture Capital (VC) Funds in the Indian Start-up Ecosystem.

Documents Required to Get Registered Under Startup India Scheme

Document Required to get Registered Under Startup India Scheme-

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

Startup India Registration Detailed Procedure in India

The Process of Being Recognized as a Startup:-

  • 1

    Form a Private Limited Company, a Limited Liability Partnership, or a Registered Partnership Firm.

  • 2

    Obtain a PAN of the Entity.

  • 3

    Apply for MSME registration of the entity.

  • 4

    Write a quick summary of the following:

    • What is the problem that the startup is attempting to solve?
    • How does the startup plan to address this issue?
    • What distinguishes the startup's solution from others?
    • How does the company make money?
    • A list of any honours or distinctions the startup has received.

  • 5

    Submit an application with supporting papers, such as a certificate of incorporation or registration, to www.startupindia.gov.in.

How startups registered under Startup India Scheme can get funding?

When it comes to achieving a company's vision, funding is a critical factor. Funding and fundraising are two important current business scenarios that help a firm develop. When it comes to achieving a company's vision, funding is a critical factor. Funding and fundraising are two important current business scenarios that help a firm develop.

The following are some startup funding options:

Funding from the general public

Crowdfunding is growing popularity since it ensures that other experienced participants in the business believe in your concept as well. Crowdfunding might also assist you in obtaining critical cash at the concept stage.

Self Funding

Bootstrapping is a wonderful way to raise money for a firm, especially if the first investment is small. You also have the option of being your own employer. You have no one to answer to, and it also allows you to keep track of your revenue profits.

Venture Capitalists

Typically, venture capitalists seek out businesses with sufficient traction and a solid team. If you choose venture capital investment, however, you must be willing to accept their suggestions and accept the tight supervision.

Angel Investors

Although there are disadvantages to angel investing, such as higher interest rates and smaller investments than venture capitalists, it is essential to remember that Google, Yahoo, and even Alibaba were founded as a consequence of angel investment.

FAQs on Startup India Registration

Startup India Scheme has been launched to promote employment, wealth and quality products. Its main motive is to make a fast growing startup ecosystem for innovations and new effective ideas.
Startup registration is going to be valid for 10 years from the date of company registration
No, you need not to appear physically during the startup registration procedure. Whole process is online.
No, you can not apply for Startup India Registration without PAN
No, Foreign company cannot be registered under Startup India Initiative
Should have an annual turnover not exceeding Rs. 100 crore for any of the financial years since its Incorporation
There is no government fee for Startup India Registration.
All the benefits under Startup India Scheme are mentioned above.
Yes, you can apply again.
All the mandatory documents for Startup India registration are mentioned above.
The entrepreneurs, who have a unique and effective idea for business growth can apply for Startup India registration under Startup India scheme.
Through a simple online procedure, startups will be able to self-certify compliance with six labour laws and three environmental laws. For a period of five years, no inspections of labour regulations will be carried out. Startups may be inspected only if the inspecting officer received a genuine and verifiable allegation of violation, which must be presented in writing and authorised by at least one level above the examining officer.
Inter Ministerial Board and DPIIT (Department for Promotion of Industrial and Internal Trade) are two regulatory bodies for Startup India Scheme.
You can protect your innovative idea by registering for patent rights or trademark.

Why Startup Club India?

We, Startup Club India provide you the facility to register Startup under Startup India Scheme. Whole process is online. You are not required to visit the office.

Our team experts are available by just one call across India. We will help you to

  • Incorporate your business
  • Startup India registration filing
  • Get recognition number

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Startup Expert

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