Startup India Scheme - In a Nutshell

Will your business come under the definition of ‘Startup’?

The following criteria must be met by the companies in order to be considered as a Startup:

• Company Age: The Company should not be operative for more than 10 years
• Company Type: should be incorporated as a Private Limited Company or a Limited Liability Partnership or a registered partnership entity.
• Annual Turnover: annual turnover should not exceed more than Rs. 100 crore for any financial year since incorporation.
• Original Entity: the entity should not have been formed by splitting or reconstructing any existing business.
• Innovative: Should have a plan for development or improvement of a product, process, or service and/or have a scalable business model with high potential for the creation of wealth & employment.

How to register your business as a Startup?

Step 1: Registration of your business either as a Private Limited Company or a Limited Liability Partnership or a registered partnership entity

Step 2: Registration with Startup India Portal- The process is completely online. All you need to do is log on to the Startup India website and fill the form with your business details.

Step 3: DPIIT Recognition: The next step would be to get recognition by the DPIIT (Department for Promotion of Industry and Internal Trade). This recognition helps the start-ups in availing numerous tax benefits and ease of compliance.

Step 4: Documents Required for getting DPIIT recognition

• Incorporation/Registration Certificate
• Proof of innovative business idea
• Details of Directors
• PAN Number

Step 5: Certificate of Recognition: On successful submission of documents and verification by the DPIIT, a Certificate of Recognition is issued by the Department.

Benefits of Startup India Registration?

Following are the benefits of registering your business as a Startup

• Self Certification: Self Compliance under 3 environmental and 6 labor laws. In a nutshell, lesser compliance burden
• Income Tax Exemption: For 3 consecutive Financial Years
• Patent Application and IPR Protection –80 percent rebate on the Patent Application fees and fast track processing of the application
• Easier Public Procurement Norms: Register as a seller and sell directly to the government
• Easy Winding up of the Company: Within 90 days under the Insolvency and Bankruptcy Code 2016