Startups are like bright sunshine for the Indian economy. They are not just taking the economy forward but also they are inculcating the concept of innovation in the business environment.
The startup is a newly established business that is in its early stage with a different/unique product or service. What differentiates it from the regular business is the element of innovation they possess. This Startup either comes up with a new product or redevelops an existing product/service into something better.
POTENTIAL STAGES IN A STARTUP
|Discovery: Identify a potential/quantifiable product or service for target market. Validation: once the product hits the market & sale process is on.||Efficiency: Design business model in such a way that it increases your customer base. Scale: Pushing the capacity of the business to ultimately increase the growth of business in a sustainable manner.||Maintenance: maximising the benefits of the company even during the tough times like economic slowdown. Sale/renewal: decision to sell the business to some big brand or inculcate huge resources that will help your enterprise to continue.|
Potential benefits of online Startup registration in India are:
Most of the startups are patent-based. It means they produce or provide unique items or services. In order to sign in their patents, they ought to incur a heavy fee which is called the Patent Cost.
Under this scheme, the authorities give an 80% rebate at the patent costs. Moreover, the technique of patent registration and related is easier for them as compared to full-fledged companies. Also, the government can pay the prices of the facilitator to acquire the patent.
Income Tax Benefits
Under the Income Tax head, Startups receive multiple tax exemptions. For example, the Income-tax department has exempted Startups (incorporated between 1st April 2016 to 1st April 2021) to pay Income tax up to 3 consecutive financial years out of the first 10 years of its incorporation.
But they are able to avail it handiest upon getting certificates from the Inter-Ministerial Board. Also, they are able to declare exemption from tax on Capital Gains if they make investments cash in designated funds.
Everyone believes that incorporation and registration of business are ways harder than going for walks it. It is due to the long and complicated steps of registration.
With the help of the Startup India scheme, an application for online startup registration in India can be arranged. A single meeting is organized on the Start-up India hub. Also, there’s an unmarried doubt and problem-fixing window for them.
Under the government e-tendering scheme, these startups get priority in getting government authorized tenders. Also, they may be not required to have any prior experience. To boost up the motivation, morale and make a business-friendly environment for the online Startup registration in India, the government is planning to ease out the compliance norms for Startup registrations.
Huge Networking Opportunities
There are immense networking opportunities for startups to meet with people from other startups, incubators, angel investors, venture capitalists, legal advisors, and tax advisors, and so on. Annual startup fest organized by various governments makes this section more attractive since it opens up various opportunities for businesses to diversify. Startup India scheme started by the Government of India provides intellectual property rights awareness workshop for those startups registered on their portal.
The government also provides lists of facilitators of patents and trademarks. They will provide high-quality Intellectual Property Rights Services including a fast examination of patents at a much lower fee. The government will bear all facilitator fees and the Startups will bear only the statutory fees. A considerable reduction in patent filing costs will boost the online Startup registration culture in India.
Access to funds
To further give a boost to Startup a 10,000 crore rupees corpus is set-up by the government of India to fund these Startups as a venture capitalist. The government is also giving a guarantee to the lenders to encourage banks and other financial institutions for providing security free capital to these Startups.
FREQUENTLY ASKED QUESTION [FAQ’s]
What is the process of online Startup registration in India?
|1||Director Identification Number (DIN) application||Ministry of corporate affairs (MCA)|
|2||Get an online Digital Signature Certificate (DSC)||Ministry of corporate affairs (MCA)|
|3||Reserve your Business name||Registrar of companies (ROC)|
|4||MOA, AOA, Company stamping documents||State Treasury or Authorised bank|
|5||Incorporation certificate||ROC or MCA|
|6||Obtain Permanent Account Number (PAN)||NSDL or UTIITSL|
|7||Obtain Tax Account Number (TAN)||Income Tax Department|
|8||Office, shops & establishment act registration||Municipal office|
|10||Register for Provident fund||Employment provident fund organization|
|11||Medical Insurance registration||Employment state insurance organization|
What are some of the important factors to be considered during the process of online Startup registration in India?
- Cost of business
- Market demographics
- Market size
- Startup registration
- Competitors analysis
- Return on investment (ROI)
How much is the cost of online Startup registration in India?
- There is no fixed cost in India. As a result, it is difficult to pinpoint the exact cost of registering an online startup in India. The cost of online Start-up registration varies from business to business and it depends on various licenses and permissions required to operationalize your business.
How can I get funding for online Startup registration in India?
- Finding the funding for your Startup is the most challenging part and it is the primary stage to bring your innovative idea into reality. Some of the most opted out options of funding for online Startup registration in India are:
- Business incubators & accelerators
- Bootstrapping i.e. Self-financing
- A loan from the commercialised bank
- NBFC financial assistance
- Venture capitalist
- Angel investor
Chartered Accountant by profession, CA Sanket Agarwal has an experience of above11 years in Cross Border compliance , Import Export , International Taxation & is a passionate content creator.