Startup India Registration - Biz Setup Global

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What is Startup India Registration?

Startup India Registration was established by the Government of India and is overseen by the Ministry of Commerce and Industry. Aimed at bolstering the Indian economy and encouraging entrepreneurship, the Stand-up India programme works to elevate and expand Indian startups.

It offers several advantages, including –

What makes you a Startup under the Startup India Program?

Companies must be either limited liability companies or limited partnerships to qualify.

For the first decade after its incorporation, the company is still considered to be in its "startup" phase.

The Indian government has extended the startup period from 7 to 10 years to provide businesses with more possibilities and tax breaks.

A company is still considered a startup provided its annual revenue does not exceed ₹100 crore in any of those 10 years.

Once the threshold is reached, the company can no longer be considered a startup.

The Indian government has raised the threshold to ₹100 crore from ₹25 crore in recent years.

The company must have the Department of Industrial Policy and Promotion (DIPP) clearance.

The company should be supported by a Private Equity Fund, Angel Fund, or Incubation Fund.

The Indian Patent and Trademark Office must provide patron assurance before any trademark may be filed.

A letter of recommendation from an incubator is required.

The business must develop novel strategies and ideas.

Securities and Exchange Board of India (SEBI) registration is required for all funding information.

3 Layers Of Startup India Certificate Recognition

Issuance Of Startup India Certificate

After assessing the unique business process and other eligibility criteria, DPIIT awards a Startup India certificate to the newly incorporated company upon receipt of an application.

Angel Tax Exemption On Equity Investment

If a startup is further approved by the Inter-Ministerial Board, an investment made on the premium by investors is exempt from tax under section 56(2)(viib) of the Income Tax Ac 1961.t.

This exemption is effective until the startup’s paid-up share capital plus share premium does not reach ₹25 crore.

A startup must make a Form-2 declaration with DIPP to qualify for angel tax exemption.

Income Tax Exemption

The startup will receive a three-year tax break out of a ten-year term.

Startups must file a separate application under Form-1 for income tax exemption under Section 80-IAC, and the Income Tax authority must grant or deny the application.

This application can only be submitted when a Startup India Certificate has been issued.

The Validity Of Startup India Certificate

An entity ceases to be a Startup after ten [10] years from the date of incorporation/registration OR if its preceding year’s turnover reaches one hundred [100] crore rupees. Whichever comes first.

Startup India Certificate Verification

When you apply for Startup India Registration, you will be given an acknowledgement receipt number (ARN) that will allow you to track the status of your certificate. You can download your Startup India certificate once your application has been processed successfully.

Startup India Certificate Benefits

Tax Exemption U/S 80 IC

After being recognised under the Startup India scheme, you may claim tax exemption under Section 80 IAC of the Income Tax Act.

During the first 10 years of starting eligibility, a startup can take advantage of a tax holiday for 3 consecutive fiscal years.

Application Criteria for 80IAC Tax Exemption:

It must be a well-known startup.
Only private limited companies or limited liability partnerships are eligible.
Must be formed on or after April 1, 2016.

Angel Tax Exemption U/S 56

After registering with Startup India, you can apply for an Angel Tax Exemption.

Criteria for Angel Tax Exemption Under Section 56 of the Income Tax Act of 1961:

The company must be a DPIIT-approved startup.
After the proposed share issue, the total amount of paid-up share capital and share premium must not exceed ₹25 Crore.

Self-Compliance For Labour Laws

Startups can self-assess their compliance with employment laws, and there will be no inspections or physical visits by public officers for the first 3 years. Startups can self-certify per the 6 labour rules listed below using the Startup India platform.

Inter-State Migrant Worker Statutes.
Gratuity Regulations.
Laws Concerning Provident Funds.
State Insurance Laws for Employees Other Constructions Labour regulations.
Contract Labour Regulations.

Our expertise can assist you with self-certifying compliance with labour legislation.

Trademark, Patent, IPR Related Exemption

With a Startup India certificate, entrepreneurs can receive support in applying for intellectual property rights such as trademark, patent, and copyright registration.

Recognised startups are eligible for the following IPR benefits:

Startup patent applications will be expedited with an 80% government fee reimbursement.
A panel of facilitators will help with IP applications.
Refund for filing a trademark application.

Funding Opportunities & Other Government Schemes

Startups registered under the Startup India scheme can apply for funding through a variety of government or semi-government-aided schemes, including:

Venture Capital Assistance Scheme:

The Small Farmers’ Agribusiness Consortium (SFAC) provides an interest-free loan to projects that fall short of the capital requirements for project completion under this plan.

Support to MSMEs for International Patent Protection in Electronics and IT:

Stand Up India Scheme bank loans ranging from 10 lakh to 1 crore to at least one SC/ST borrower and one women-owned firm per bank branch.

Single Point Registration Scheme (SPRS)

NSIC registers MSEs for participation in Government Purchases under the SPRS scheme.

Easier Norms On GeM Portal

The Government e-Marketplace [GeM] is a public procurement e-commerce portal. Private sellers, including startups, can sell to government purchasers and participate in government e-tenders.

A registered startup has advantages over other private sellers. GeM Startup Runway Scheme is a different scheme that was launched for a startup.

Startups participating in the Gem Startup Runway scheme are eligible for exemptions from the following:

Previous Turnover
Previous Work Experience
Earnest Cash Deposit
Minimum government tender criteria

Easy Winding Up Of Company

Startups registered under the Startup India scheme can use the Insolvency and Bankruptcy Code, 2016, to wind up the firm within 90 days if the startup business model fails.

Startup India Registration Process

Please provide the required business details and information to our web portal.
Choose a package and pay online with different payment modes available.
When placing an order, the Startup India application will be assigned to one of our dedicated professionals.
Our professionals shall carefully examine the criteria of startup recognition and apply.
Our professionals follow up with the government department to issue the Startup India Certificate.
A Startup India Registration certificate shall be provided to you on successful examination.

Document Required For Startup India Certificate

Evidence of Business Registration: The company’s certificate of incorporation or registered partnership deed.
Brief on Business notion necessitates a brief description of your business’s creative idea.
Details about the core team of directors, such as their qualifications and role in the organisation, are necessary.
Other pertinent information includes any money received, any IPR used, and the number of workers, including founders and their positions.

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Frequently Asked Questions