Overview

Although many people have business ideas, they often need to learn how to launch a business or turn those ideas into profitable ventures. How to register a startup company is unknown to most people.

Startups are businesses or organisations that are still in their infancy and are typically characterised by high levels of risk and uncertainty. When founders identify flaws in the system they have been working in and decide to start their own business to address the problems, such businesses are formed.

Benefits of startup India registration 

Tax Exemption

For the first three years, a startup registered with the Startup India program is exempt from paying taxes. Any investment made by incubators worth more than the market rate is exempt from taxation.

Additionally, the plan excludes angel investor investments. Due to a tax exemption for the first three years or reaching a specific threshold amount, the startup can use all of the revenues exclusively for business development.

Straight Registration Process

The straightforward registration procedure allows the program to benefit thousands of people. Through its official website or mobile app, the Startup India Initiative offers emerging startups the ability to register. You must complete a form and upload your supporting documentation online to be verified.

Government Tenders

The size and financial incentives of government projects are typically greater. But getting one is more complicated. The primary justification for this is that they are competitive. However, startups are given incentives to win government contracts under this program. Additionally, they are not required to have prior experience to be eligible for such tenders.

Intellectual Property Rights (IPR) Benefits

The Startup India program promises high-quality Intellectual Property facilities and resources. The government offers an 80% and a 50% fee rebate for filing a patent application and applying for a trademark. Additionally, startups’ patent applications are expedited for review and rejection. It also encourages startups to use and commercialise IPR benefits.

Self-Certification

There are numerous labour law requirements that a business must follow. The consequences of breaking these laws are strict responsibility. Because they are still relatively young, startups frequently need to pay more attention to ecosystems.

However, startups can self-certify compliance with nine labour and environmental regulations to reduce their regulatory obligations. There will be no inspections in this case for three years.

Networking Options

With the program’s help, startups can connect with other startup stakeholders at a specific time and location. Festival-style planning goes into these gatherings. Twice a year, these festivals are held.

The fests feature participation on both the national and international levels. In addition to looking for funding, this offers entrepreneurs a fantastic chance to watch how other startups develop and grow. It also helps them view their regular activities from a wider angle.

Relaxation in Public Procurement

It has been requested that the rules governing the procurement process for startups be relaxed by all institutions under the control of the Government of India, including the Ministries, Public Departments, and Public Sector Undertakings (PSU). Recognised startups can register on the Government e-marketplace (Gem portal) and CPPP portals to receive pertinent updates and details about government bids.

Single Window Clearance

One benefit of Startup India is that it allows qualified businesses to register using a single form. It is achievable with the help of the Startup India mobile app. Startups can register themselves using the application’s single form.

This app also makes single-window clearances for registrations, filing compliances, approvals, and other processes available to business owners. It is the quickest and easiest way for anyone to start a business.

Research and Innovation Benefits

The most significant of them all is the last. Through Startup India, those with entrepreneurial aspirations are encouraged to participate in research and innovation. The creation of seven new research parks is planned. These parks will make it possible for students and startups to carry out research and create new products.

Patent Protection

Anyone who has ever registered a patent knows how time-consuming the process is. However, the program takes several precautions to protect priceless intellectual property. It entails conducting a brief review of patent applications.

Beyond just expedited patent applications, other efforts are made. After submitting the patent, a rebate of 80% of the total patent cost is also provided.

Simple Exit Process

One of the most significant challenges startups today face is navigating the complex paths to business exit. You can apply a winding process if you intend to retire for several reasons. From the time this application was first submitted, you will have 90 days to finish it.

Eligibility for startup India registration

• The corporation’s legal structure must be either a private limited company or a limited liability partnership.
• After the registration date, the business is still in its startup phase after ten years. The Indian government recently increased this from seven to ten years to provide businesses with opportunities and tax breaks for extended periods.
• The company must receive approval from the Department of Industry Policy and Promotion (DIPP)
• The business is still a startup if the annual turnover is at most Rs 100 crore in any of the following ten years. Once it has reached the threshold, the company is no longer qualified to be referred to as a startup. The Indian government recently increased the threshold to Rs 100 billion from Rs 25 billion.
• It is necessary to obtain a patron guarantee from the Indian Patent and Trademark office.
• A private equity, angel, or incubator fund should provide funding for the business.
• A letter of recommendation from an incubation facility is required.
• SEBI (Securities and Exchange Board of India) must be notified of every aspect of the funding 
• The business must develop novel concepts and plans.

Procedure for startup India registration 

Step 1: Incorporation of Business

The first step is registering your business as a startup and then incorporating it as a private limited company or a limited liability partnership. All customary procedures must be followed to obtain a certificate of incorporation, PAN, or other compliances.

Step 2: Register with Startup India

Following that, a startup registration must be made for the company. Everything is done online throughout the process. Visit the Startup India website and complete the form by describing your company. Next, enter the One Time Password sent to your email address and other information, such as the startup, the type of user, the company’s name and phase, etc. Next, a Startup India profile is made. Startups can apply for various accelerator, incubator, and mentorship programs after creating a profile on the Startup India website.

Step 3: Upload the required documents

The only way to move your application process along after filling out the form is to upload the necessary documents in PDF format.

Step 4: If applicable, mention the tax exemption

For the first three years of their business, startups in India are exempt from paying taxes, but they can only take advantage of this benefit if their company is accredited by IBM (Inter-Ministerial Board). Because registration is sufficient to receive the benefits, companies registered with DIPP are exempt from this requirement.

Step 5: Self-certification

You must verify that you have complied with all requirements to register as a startup. Check to see if the following conditions have been met:

• Your company’s registration as a legal entity, such as a partnership, limited liability partnership, or private limited company.
• You should wait five years before registering or incorporating your business in India.
• The turnover for the year can be at most Rs. 25 crores.
• The company needs to upgrade its technology while developing fresh ideas regularly.
• The newly launched company cannot be a copy of an existing company or its reconstruction.

Step 6: Getting Recognition Number

After your application has been successfully submitted, you will receive a recognition number for your startup. After all of your documents have been examined, which typically takes place two days after you submit the online information, the certificate of recognition will be issued.

Make sure all of the necessary documentation is submitted and that it is all genuine. If any required documentation has to be supplied or is fake, you will be penalised with a fine of 50% of your paid-up capital, with a minimum fine of Rs. 25,000.

Documents required for startup India registration

When you sign up for registration, you must present certain documentation for your startup if you intend to establish your business as a startup in India.

• The PAN Card Number
• Written evidence about your official website, a link, or a pitch deck is required for a staged startup, speaking engagements, early traction, or validation.
• A pitch deck or business plan
• Verification Information for the Director’s Entire Profile.
• The Registration or incorporation certificate of the startup.
• Bylaws and Trademark
• Specifics regarding patents and trademarks.
• Agreements for Intellectual Property Assignment
• Employee contracts and offer letters; 
• A Nondisclosure agreement (NDA); 
• Founder/Co-Founder Agreements; 
• Articles of association or incorporation; 
• A Shareholder’s agreement