India has the third largest Startup ecosystem in the world with year on year growth of 12% (appx.) according to recent statistics by Government of India. This is because of the apt business environment & the convenient Startup registration procedure which attracts FDI investments in India.
What is Startup India?
“Startup India” (2016) is an initiative by Government of India with the intent of building a strong business environment. Startup India is a special scheme to boost the essence of entrepreneurship in the country and give innovative ideas a direction to make them into reality.
Some of the benefits associated with Startup India registration?
1.) Income Tax Benefits: Under the Income Tax head Startups receives multiple tax exemptions. For example Income tax department has exempted Startups to pay Income tax upto 3 years from the date of 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.
2.) Registration Benefits: Everyone believes that incorporation and registration of business are a ways more hard than going for walks it. It is due to the long and complicated steps of registration.
Under the Startup India scheme, an application is there to facilitate registration. A single meeting is organized to on the Start-up India hub. Also, there’s a unmarried doubt and problem-fixing window for them.
3.) Government Tenders: Under 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, government is planning to ease out the compliance norms for Startup registrations.
4.) Networking Opportunities: There are immense networking opportunities for startups to meet with people from diverse business backgrounds. 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 Government of India provides intellectual property rights awareness workshop for those startups registered on their portal.
5.) Cost reduction: The government also provides lists of facilitators of patents and trademarks. They will provide high quality Intellectual Property Right Services including fast examination of patents at a much lower fees. The government will bear all facilitator fees and the Startups will bear only the statutory fees. They will enjoy 80% reduction in cost of filing patents.
6.) Financial Benefits: 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 80% rebate at the patent costs. Moreover, the technique of patent registration and related is easier for them as compared full-fledged companies. Also, the government can pay the prices of the facilitator to acquire the patent.
7.) Incubation facility: Under Atal Innovation mission (AIM) government is establishing Atal Incubation centres (AIC) & Atal tinkering labs (ATL) with the motive of strengthening Startup culture in India. This incubation facility in available in major cities, and they help potential innovative business ideas to become more effective.
What is the procedure for Startup India registration?
1.) Business/Company incorporation: company registration is the most fundamental step for Startup registration. Amongst various forms of company registration viz. Private ltd co, one person company or a partnership firm, one could choose any one as per the business requirement.
Get your company incorporation certificate and fulfil all other compliance before proceeding ahead with Startup India registration.
2.) Startup India Portal: Don’t forget to register your company on Startup India portal. This is a complete online portal and you don’t need to physically visit the office.
Register on Startup India portal >>> Create an account >>> Login using unique ID & Password >>> Fill in the company details (PAN, GST, Incorporation documents) >>> Upload the necessary documents.
- Turnover less than Rs. 25 Crore annually.
- A new private ltd co, partnership firm or a LLP.
- Company incorporation is not more than 5 years.
- Business entity is not a result of splitting or reconstruction of existing business.
4.) Recognition number: A temporary recognition number will be issued once all the documents & forms are submitted but this certificate of recognition will be issued after all the documents are verified by the authorities.
How CAONWEB will prove to be a game changer in your Startup India registration?
CAONWEB offers a complete range of services which are essential for any Startup registration. Ease of compliance is one such thing that any Startup is looking forward throughout their business cycle. CAONWEB works towards removing many barriers which Startup faces nowadays.
- Business registration & its subsequent Startup India registration
- Application filing and document assistance from experts.
- Understand the changing business environment.
- Making business compliance convenient
- Empathic treatment with businesses
- Affordable Professional charges.
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.