New simple step by step process for Startup India registration
“Start small to go big”. Almost all businesses go through this stage. Initially every business starts from small level & eventually goes big. There are no limits & restrictions for starting a business in India; all you need is proper business idea that will fetch you good returns & your initial set of investment in business. Startup India registration is one such platform for these new innovative ventures who wants to start their business from scratch.
What is Startup India registration?
Startup India is one of the flagship schemes of government of India viz. intended to develop a strong business environment in the country. Startup India registration scheme is directly governed by Department of Industrial policy & promotions (DIPP), Government of India. There are certain set of conditions which needs to be fulfilled to get recognised as a Startup under Startup India registration scheme.
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- The Startup must be registered as a private Limited company / Partnership firm / LLP.
- Turnover must be less than 100 Crores in any of the previous financial years.
- Up to 10 years from the incorporation date, an entity can be considered a Startup
- The Startup must be inclined towards innovation/ improvement of existing products or services and it should have the potential to generate employment/ create wealth.
SIMPLEST PROCESS TO GET STARTUP INDIA REGISTRATION
1.) Choose the business format
Various business categories in India are as follows:
- Limited Liability partnership [LLP]
- Private Limited Company [PLC]
- Public limited company
2.) Register under Startup India registration scheme
Register your business as a Startup in the Startup India scheme by government of India. Just fill the form available on the Startup India registration portal. Along with the necessary details some supporting documents also needs to be uploaded.
3.) Documents submission
- Certificate of incorporation
- Nature & brief description of business
- Funding declaration (Source & type of funding)
- Letter of recommendation (Government & Incubation centre)
4.) DIPP registration for income tax exemption
After getting “Startup India registration” recognition you may apply for Tax exemption u/s 80 IAC of the Income Tax Act. Startups can avail tax exemption for 3 consecutive financial years out of first ten years from company incorporation.
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Income Tax exemption (80IAC) eligibility criteria:
- The entity should be a recognized Startup.
- Startup must be incorporated on or after 1st April, 2016.
- Only Private limited/LLP is eligible for Tax exemption under Section 80IAC.
5.) Recognition number of Startup India registration
Once applied for Startup India registration & all the documents are verified, you will receive a recognition number.
FREQUENTLY ASKED QUESTIONS (FAQ’s)
Q. What are the benefits of signing up with Startup India registration?
Income Tax Benefits: Under the head of Income Tax, Startups receive multiple tax exemptions for their business. For instance; Income tax department (ITD) has exempted Startups to pay Income tax upto 3 years from the incorporation date of business.
Government Tenders: Governments e-tendering scheme gives priority to these Startups in getting tenders. To boost up the motivation & develop a friendly business environment for Startup India registration, government is planning to ease out the compliance norms.
Cost reduction: The government will help to find out high quality Intellectual Property Right Services including fast examination of patents at much lower fees. The government will look after the facilitator cost and the Startups will bear only the statutory fees.
Incubation facility: Under Atal Innovation mission government of India is planning to establish Incubation centres & labs with the motive of strengthening the Startup culture in India.
Q. Can an existing entity be registered as a “startup” in the Startup India portal?
Yes, an existing entity can register itself as a “Startup” by fulfilling certain set of conditions:
- The Startup must be registered as a private Limited company / Partnership firm / LLP.
- Up to 10 years from the incorporation date, an entity can be considered a Startup.
- Turnover must be less than 100 Crores in any of the previous financial years.
Read Hindi Blog: HOW TO OPEN SMALL BUSINESS
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.