The registration with Startup India (DPIIT) is mandatory to avail of the Tax Benefits, Concessional IPR Filing and easier compliance. The benefits provide to Start Up’s under Startup India Registration are immense , which is why more people are setting up their startups. Setupfiling is an online platform that provides consultation and professional services to startups looking for fast and affordable compliance services.
A startup is a new business that has just been started. It is usually small and created by one person or a group of people. How it’s different from other new businesses because it comes up with a new product or service that isn’t already being sold elsewhere in the same way. “Invention” is the keyword. The business either comes up with a new product or service or improves an existing product or service to make it better.
Startup India is a flagship programme of the Indian government (started in January 2016) that aims to create a robust ecosystem for nurturing innovation and startups in the country, resulting in long-term economic growth and large-scale job creation. With this effort, the government hopes to empower startups to grow through innovation and design. To achieve the initiative’s goals, the Indian government launched the Startup India Action Plan, which covers all areas of the startup ecosystem
Under the Startup India Action Plan, startups that meet the definition as prescribed under G.S.R. notification 127 (E) are eligible to apply for recognition under the program. As per the Startup India Action plan, the followings conditions must be fulfilled in order to be eligible as Startup :
The government also provides lists of facilitators of patents and trademarks. They will provide high-quality Intellectual Property Right Services including fast examination of patents at lower fees. The government will bear all facilitator fees and the startup will bear only the statutory fees. They will enjoy 80% reduction in the cost of filing patents.
Startups will be exempted from income tax for 3 years provided they get a certification from Inter-Ministerial Board (IMB).
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
A 10,000 crore rupees fund is set-up by government to provide funds to the startups as venture capital. The government is also giving guarantee to the lenders to encourage banks and other financial institutions for providing venture capital.
Startups can apply for government tenders. They are exempted from the “prior experience/turnover” criteria applicable for normal companies answering to government tenders.
Seven new Research Parks will be set up to provide facilities to startups in the R&D sector
After this plan, the startups will have an option to choose between the VCs, giving them the liberty to choose their investors.
Various compliances have been simplified for startups to save time and money. Startups shall be allowed to self-certify compliance (through the Startup mobile app) with 9 labour and 3 environment laws.
The government has proposed to hold 2 startup fests annually both nationally and internationally to enable the various stakeholders of a startup to meet. This will provide huge networking opportunities.
We help plan and prepare for Startup India Registration, draft documents, and file with the Department for Promotion of Industry and Internal Trade (DPIIT) under the government of India Startup India Initiatives.
Updated financial statements (Balance Sheet, Profit & Loss statement, Income Tax Returns) for the past three years or from the year of incorporation
Note 1 – The Balance Sheet and the Profit and Loss Statement must be CA Certified
Note 2 – If your startup was incorporated on 1st April 2021 or later, Income Tax Returns (ITR) is not mandatory. For startups incorporated earlier, ITR is mandatory
Toolkit for Pitch deck
Startups are becoming very popular in India. In order to develop the Indian economy and attract talented entrepreneurs, the Government of India, under the leadership of PM Narendra Modi, has started and promoted the Startup India initiative to recognize and promote startups.
First Step in Start up India Registration is to incorporate your business as a Private Limited Company or a Partnership firm or a Limited Liability Partnership. You have to follow all the normal procedures for registration of any business like obtaining the Certificate of Incorporation/Partnership registration, PAN, and other required compliances.
Once your Business get incorporated, you need to register your incorporated entity under Start Up. Process is 100% Easy and Online. Our Team will help you in each steps of registration.
The next step After Registration Under Startup India need to Apply for Department for Promotion of Industry and Internal Trade (DPIIT) Recognition. This recognition helps the startups to avail benefits like access to high-quality intellectual property services and resources, relaxation in public procurement norms, self-certification under labour and environment laws, easy winding of company, access to Fund of Funds, tax exemption for 3 consecutive years and tax exemption on investment above fair market value.
Yes. One Person Companies are eligible to avail benefits under the Startup India initiative.
No . Proprietorship and unregistered partnership firm are not eligible to avail benefits under the Startup India initiative.
The Ministry of Corporate Affairs (MCA), under the Companies Act 2013 has made the new company registration process very simple and efficient. You can get your company registered within seven days. The process is so seamless that you can get the registration done without even going to the government offices
Eligibility Criteria for Startup India Scheme
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