Start-up India Registration
What is Start-up India?
Start-up India is an initiative to recognize the effective contribution of startups in Indian economic growth and to encourage talented entrepreneurs by providing them greater growth opportunities.
Its objective is to facilitate the business process in India. Some of the major benefits of the Startup India scheme include Tax exemption for start-ups for any consecutive three years, reduced fees for trademark and patent registration, a 90-day business closure process among many others.
A start-up signifies a legal entity, incorporated and registered in India:
- As a Private Limited Company or Limited Liability Partnership or Registered as a Partnership Firm.
- Shouldn’t have an annual turnover of more than Rs. 100 crores for any of the financial years since the date of incorporation.
- 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.
- An entity which is formed by splitting up or reconstruction of an existing business shall not be considered as a ‘Start-up’.
- Shall not be more than 10 years old for Start-up recognition OR not incorporated before April 2016 to claim Tax Exemption certificate.
An entity shall cease to be a Start-up, when either it completes 10 years from the date of incorporation, or if its turnover for any previous year exceeds Rs. 100 crores.
Benefits of Start-up India Registration
- Simplified Registration
The process for startup registration has been simplified by the government with the launch of a mobile application. Only a form needs to be filled along with certain required documents. The entire process is online. - Tax Exemption:
When the company is recognized as a startup, it can apply for Income Tax Exemption Benefits under section 80IAC and under section 56 relief for Angel Tax relief (Tax on Share Premium). - Self-Certifications
A startup is eligible for Self-certification and compliance under 9 environmental & labour laws. - Easy Funding
Rs. 10,000 crores have been allotted by the government as Investment in startups through Alternate Investment Funds. These are being managed by SIDBI. - Cost Reduction
Indian government has introduced lists of patents and trademarks to reduce the cost of filing patents. The startup only has to bear the statutory fees as the government will bear e all facilitator fees. - Tender Application
Govt. has extended relaxation for startups to be able to apply for tenders. They are exempted from fulfilling the previously issued criteria of prior experience or turnover. - Quicker Exit
In case the startup needs to shut down, it can wind up the company in 90 days under insolvency & Bankruptcy code 2016. - Increased Networks
Government has proposed to organize 2 startup fests annually both nationally and internationally in order to build a platform for entrepreneurs to connect with each other. This will amplify the networking opportunities for startups. - Fee Concession in IPR
50%-80% Govt. fee concession is available in IPR Registration, for example in Trademark, Patent application, etc.