The Startup India Scheme is a Government of India initiative aimed at encouraging the development and innovation of products and services, as well as the creation of job opportunities across the country. One of the scheme's goals has been to simplify how to register a startup in India by reducing regulatory burdens and allowing them to focus on their core business while keeping compliance costs low, as well as to provide multiple benefits in addition to the massive networking opportunities provided by the Government’s bi-annual startup festivals held both domestically and internationally.
Process to Register under e Scheme
Incorporate your company
Incorporation of a business requires that the business be in existence in the first place, and you can only register your business once it is in existence. The issue is that in order to incorporate a company, you must follow all of the establishment procedures, such as filling out Integrated incorporation form SPICe Plus and others based on the type of company you want to incorporate. This is a critical step in registering a business under the Startup India Scheme.
Register With Startup India Scheme
When you start something new, it is labelled as a startup for the first ten years after incorporation, so the registration process is very simple and straightforward. Simply go online to https://startupindia.gov.in/registration.php and fill out all of the required information to register your business or entity for the Startup India Scheme.
Documents to Be Uploaded
When registering for the Startup India Scheme, you must be extremely cautious about the documents you upload. All documents must be uploaded in PDF format only, not in other formats such as.doc and.docx. As a result, make sure that any documents you upload are only in PDF format.
What information should be included in documents?
There are certain Startup India Program documents requirement that you must upload in any case, with the caveat that they must be in PDF format only.
The certificate that identifies the existence of your entity is known as an incorporation or registration certificate. When you incorporate your entity, the certificate you receive is the one that the registrar will issue upon the successful incorporation of your entity.
When registering for the Startup India Scheme, keep in mind that the government wants to know what your business is so that it can provide funding under the scheme. So, once you provide a brief description of your business while registering for the scheme, you provide details about the establishment of the business and the innovation of the business that you are running, and the government will decide whether or not to provide benefits under the Scheme.
Eligibility for Startup India Scheme Registration
First and foremost, the entity must be a Private Limited Company or a Limited Liability Partnership Firm or Registered Partnership Firm.
Second, the companies must have received approval from the Department of Industrial Policy and Promotion.
It must also have a recommendation letter from an incubation.
The company must offer novel schemes or products.
It should be a new company or no more than five years old.
The company's annual turnover should not exceed 100 crores in any of the years after its incorporation .
Finally, it should not be the result of the dissolution or reconstruction of an existing business.
The Advantages of the Startup India Scheme
Income Tax Advantages
Startups are now exempt from income tax for three years from the date of incorporation if they are certified as such by the Inter-Ministerial Board of Certification. Furthermore, after receiving recognition from the DPIIT (Department for Promotion of Industry and Internal Trade), and if the startup's total paid-up share capital and share premium after the proposed issuing of shares, if any, does not exceed INR 25 Crore, the startup will be exempt from capital gains tax under Section 56 of the Income-tax Act, 1961-2014.
Financial Advantages
Startups receive an 80% rebate on patent and 50% rebate on trademark IPR costs, and they are actively assisted by government-provided facilitators who help with IPR protection and commercialization. Scrutiny and disposal of IPR applications are also being expedited. The facilitators' fees will also be covered by the government.
Registration Advantages
Due to the arduousness of the requirements, startup registration in India remains extremely complex, with incorporation and registration considered more difficult than actual business operation. The Startup India Hub, a portal to create networking opportunities and assistance for startups, has been created as part of the scheme, with the government providing a problem-solving window.
Advantages of Funding
Certain states provide seed funding to startups certified under the scheme.
Regulatory Advantages
Startups can self-certify compliance with six labor laws and three environmental laws under the Startup India Scheme using a simple online procedure. In the case of labor laws, no inspections will be conducted for a period of five years unless a credible and verifiable complaint of violation is filed in writing and approved by an official at least one level senior to the inspecting officer. In the case of environmental laws, startups in the "white category" (as defined by the Central Pollution Control Board) would be able to self-certify compliance with only random checks.
Advantages of Public Procurement
Once your startup has been certified by the Inter-Ministerial Board of Certification and a DIPP (Department of Industrial Policy and Promotion) number has been issued to you, you can become a seller on the Government of India's e-procurement portal - Government e-Marketplace - and gain access to all Government of India Ministries/Departments/Public Sector undertakings, subject to your ability to meet quality and technical requirements. Certified startups will also be exempt from the earnest money deposit requirement in your bid, as well as the requirements for prior turnover and experience.
Advantages of Faster Exit
The government has implemented provisions to make winding down operations easier by appointing an insolvency professional to expedite the closure of operations, facilitate the sale of goods, and pay creditors, all while recognizing limited liability. Startups with a simple debt structure or those who meet the criteria outlined in this scheme will be able to complete their exit within 90 days.
Why choose Compliance Calendar LLP?
Compliance Calendar LLP is India's largest professional platform for lawyers, chartered accountants, and company secretaries, all of whom have years of experience. Every month, we complete legal work for over great companies and LLPs by leveraging our tech capabilities and the expertise of our legal professionals.
Customer Evaluation
We handle all of the paperwork, making your interactions with the government as simple as possible. We will also provide complete transparency about the process so that you can set realistic expectations.
Strong Team
You are only a phone call away from the best legal services, thanks to a team of experienced business advisors and legal professionals.
Access To Experts
We connect you with reputable professionals and work with them to ensure that all of your legal requirements are met. You can also keep track of the progress at any time on our online platform.
Realistic Expectations
We ensure a smooth interaction with the government by handling all paperwork. To set realistic expectations, we provide clarity on the incorporation process.
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