Schemes, Striking Features & Perks Of Startup Registration In India

The startup is a newly established business entity that is quite often small and has been set up by a single person or group of people. The startups will be standing distinct from other types of emerging businesses as they will be extending the most unique item/ service that you won’t be capable of finding anywhere else. Also, there will be the creation of new items as well as the services that have been set up or improvement is done and this is dependent upon what exactly the organization is deciding upon.

What initiates Government has brought up for promoting startups in India?

Startup registration in India is the procedure of seeking permission as well as identifying what exactly is the protocol for setting up the startup in the country. So, there are several organizations that are self-funded until it will be reaching to the point of growth and might be seeking funding outside. The business financing possibilities will include families, friends, venture capitalists, crowd-sourcing as well as loans.

The startups will be acquiring immense popularity in the country. The Indian Government always comes up with startup India initiatives, along with provisions for startup India registration, which is striving towards recognizing as well as promoting the establishments within the country.

So, what is the process of registering a new business in the country? Well, as per the provision of the startup Indian program, there are many eligible companies that may be applying to the industrial policy along with the DPIIT promotion. So, this has been developed as the startup for qualifying to attain tax savings, simplify compliance, and fastening IPR proceedings along with many of the other advantages.

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Any business could be referred to as a startup during the initial ten years after it has been formed. Earlier the tenure was 7 years but now the Governmental authorities have raised the bar to a total of 10 years. The Government of India has taken this initiative for the promotion of entrepreneurship along with assisting new establishments in capitalization of all opportunities as well as the tax incentives for thriving.

So, the first step will be the completion of the process of startup India registration, in order to register the entity under this program.

What advantages startup India registration provide?

Legal Protectivity

Any startup established will be defined as a legal entity. As a consequence, you will be in the position of conducting business, hiring your employees, and entering into contracts in the name of your company. Also, this is going to extend protection from civil/ criminal liability on your business as a distinct entity.

Enhanced credibility

When you register startup in India, this is going to improve your reputation with the customers as well as the associates. So, this is going to reflect the commitment to the business along with the fact that has been put forward about the requirement for the preparations for securing validity as well as legality.

Possibility of acquiring & convenient exiting

Startup registering will be making it convenient for departing or selling the same in future. So, this is holding simpler for transferring ownership/ sell organization whenever there is registration of company as it will be having transparent structuring of ownership.

Government initiatives & programs

It is mandatory to go for Startup India registration, meeting all the eligibility needs for receiving all the advantages. The Government of India has already come up with several of the lucrative incentives, as well as programs for initiating & running your startups.

Seek funds from investors

When you register the startups, you will acquire the chance to seek funds from investors. This is playing a crucial role in expanding as well as growing your company. So, investors will prefer to invest within registered entities, as it is going to extend the sense of high security as well as transparency.

Tax exemption relief

When you want to go for startup registration in India, then this will provide you eligibility for several of the advantages in terms of taxation, and exemptions as per the regulations in the taxation regimen. So, there will be an improvement in profitability with respect to paying less taxation.

Eligibility criteria of a startup under the Startup India Scheme

Here is eligibility criteria to register startup in India:

Applicant’s age

The age of the applicant must be in between 18-65 years

Eligibility criteria

The eligibility criteria entail whether the company is a private limited, registered partnership, or limited liability partnership.

Annual turnover limit

The annual turnover of the startup must not exceed INR 100 crores. The business entity will retain the status of a startup till the point annual turnover remains below 100 crores in the coming ten years. Currently, the Government of India has elevated the turnover to the threshold of INR 25 Crores.

Startup duration

Any firm will be qualifying in form of startup and this is for the starting of 10 years once registration date is over. Also, an organization qualifies for startup category .

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The Indian government has increased that from seven to ten years in order to provide chances and tax advantages for businesses in the long run. Applicants should not have defaulted with any financial institution in the past.

Approval from DIPP

The firm should acquire necessary approval from officials from DIPP

Funding Procedure

The incubation funding/ Angel fund/ Private Equity are most imminent of funding within the organization and all details with regard to funding must have registration with authorities.

Duration of startup

The business entity will be qualifying as a startup for the initial 10 years following the date of registration. The government of India has increased tenure from 7 to 10 years to extend the chance as well as leverage tax benefits for the business in the long run.

Approval for DIPP

The business entity that qualifies as a startup for the start of the 10 years, after the registration date. The Indian Government will be increasing the duration from 7-10 years and this will provide the chance to leverage all the tax advantages for the businesses to the long run.

Incubation Funding

The incubation fund/ angel fund/ private equity fund needs to be funded by the startup. So, all the details must be registered with SEBI.

What is process of startup registration in India?

The interested party needs to pay visit to MCA portal on internet and apply for initiating startup registration procedure:

Step 1

Setting up business

This is the first step and you are required to incorporate the business in the form of a PLC, private limited company/ partnership firm/ LLC, or limited liability partnership. You need to adhere to the protocol which will include the form for getting your company registered.

Also, applicants need to seek a PAN card, incorporation certification, and registration for partnership. Also, there has to be the inclusion of the DIN, director identification no., DSC, the digital signature certificate as well as submission of documentation to the company’s registrar.

Step 2

Registering business under the startup India scheme

The next is to register your business entity in terms of the startup India scheme, brought forward by Governmental authorities. So, you need to visit the official site and fill out the application form online and this is followed by entering all the business details along with uploading documentation. Once you create a website profile, then the business will gain the capability of applying for several of the acceleration provisions, mentorship initiatives, as well as all the challenges featured on the platform.

Also, you will have access to the most valuable of resources which will include learning, and development programs, state provisions for startups, and much more.

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Step 3

Uploading requisite paperwork in PDF format

This is to ensure that you will be uploading all the requisite paperwork within the PDF format. So, make sure to carry upon the selection of the recommendation letter provisions, as you will be requiring the same in combination with the application form.

Qualify for self-certified provisions

Make sure to choose the right legal structure of the business

Also, make sure the business is registered/ incorporated legally within the country

Also, the annual turnover of startup must be between INR 25- 100 crore

Demonstrating commitment to continuing innovation

Making sure business is developed on fresh & innovative perspectives as well as ideas

Step 4

Seeking recognition number

After completing the startup India registration, and submitting the requisite paperwork, seek a recognition number with regard to immediate impact. Be careful while uploading information. Any wrong documentation may lead to a fine up to 50% of the total paid up capital of the business or a minimum penalty of INR 25, 000