STARTUP REGISTRATION (DIPP REGISTRATION)
An entity shall be considered as a Startup
- Upto a period of ten years from the date of incorporation/ registration, if it is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India.
- Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees.
- Entity is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation. Provided that an entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Startup’.
Benefits Startup India
80 IAC Tax exemption:
Post getting recognition a Startup may apply for Tax exemption under section 80 IAC of the Income Tax Act. Post getting clearance for Tax exemption, the Startup can avail tax holiday for 3 consecutive financial years out of its first ten years since incorporation.
Eligibility Criteria for applying to Income Tax exemption (80IAC):
- The entity should be a recognized Startup
- Only Private limited or a Limited Liability Partnership is eligible for Tax exemption under Section 80IAC
- The Startup should have been incorporated after 1st April, 2016
Tax Exemption under Section 56 of the Income Tax Act (Angel Tax)
Post getting recognition a Startup may apply for Angel Tax Exemption.
Eligibility Criteria for Tax Exemption under Section 56 of the Income Tax Act:
- The entity should be a DPIIT recognized Startup
- Aggregate amount of paid up share capital and share premium of the Startup after the proposed issue of share, if any, does not exceed INR 25 Crore
Intellectual Property right
To promote awareness and adoption of IPRs by Startups and facilitate them in protecting and commercializing the IPRs, Startup India provides access to high quality Intellectual Property services and resources.
Getting recognition number
You are all set to apply for the recognition and on applying you will be allotted with one unique recognition number. Certificate of recognition will be issued after going through the documents submitted by you.
Self Certification under Labour and Environmental Laws
Startups are allowed to self-certify their compliance under 6 Labour and 3 Environment laws for a period of 3 to 5 years from the date of incorporation. In respect of 3 Environment laws, units operating under 36 white category industries (as published on the website of Central Pollution Control Board) do not require clearance under 3 Environment related Acts for 3 years.
Simplification and Handholding
Easier compliance, easier exit process for failed startups, legal support, fast tracking of patent applications and a website to reduce information asymmetry.
Easy Funding For Startups
To provide equity funding support for development and growth of innovation driven enterprises, the Government has set aside a corpus fund of INR 10,000 crores managed by SIDBI. The Fund is in the nature of Fund of Funds, which means that the Government participates in the capital of SEBI registered Venture Funds, who invest twice the amount in Startups.
Incorporation of the business
For incorporating your business in Limited Liability Partnership or a Private Limited company or a Firm, you must follow the ordinary procedures as a certificate of incorporation, Pan card and other compliances related to the particular type of business. Registration must be after or in 1st April 2016.
Registering business with the startup India scheme
Registering for a startup is a very easy process. All you need to do is upload a form online with all requisite forms in startup India website. The entire process is simplified and made online by the government.
Choose if you would like to have tax benefits
After getting all the work done you need to go through one more step of getting an approval from the inter-ministry board. It totally depends upon the ministry that they will approve your application or not. Once they approve your application then you will be able to register your startup with tax benefits. Startups recognized by DIPP can avail IPR related benefits without requiring any further license.
Self-certify your documentation
You must self-certify all your documents before filing for the recognition. Check your company is qualifying all the required conditions to avail the benefits i.e. within first 7 years you can apply, 25 crore turnover must not exceed, innovation in the product is must, the idea must not be copied, your business must not result from any reconstruction or splitting.
Relaxation in Public Procurement Norms
Government of India has authorized its Ministries, Departments and Public Sector Undertakings to relax norms in all public procurements. Startups are entitled to avail exemption on Recognized Startups can also become preferred bidders on CPPP portals, which sees over 2,00,000 tenders every year. eprocure.gov.in to know more about Government Department Procurement & about public procurement, scan this QR code
- Prior Turnover
- Prior Experience
- Prior Experience
DPIIT recognised Startups can now get listed as Sellers on the Government of India’s largest e-procurement portal,Government e-Marketplace.
- Certificate of Incorporation
- Pan Card
- Aadhar Card
- Business Plan showing Innovation , Project, Scalability
