Startup Registration India: Starting a new business venture in India? Looking to tap into government benefits and support for startups?
Registering with Startup India helps early-stage startups and entrepreneurs get recognized so they can access a host of benefits like tax exemptions, subsidized patent filing, relaxed public procurement norms, and more.
But the process of registering a startup can seem complicated for founders who are just starting out. Here is where Filingwala.com comes into the picture. This guide is written by filingwala.com experts to help new startup’s in their goals.
So in this comprehensive guide, we walk you through the startup registration in India process step-by-step. Follow these 7 key steps, and you’ll be able to get your startup registered and ready to access government schemes and incentives, or you can directly contact filingwala.com here.
Table of Contents
1: Incorporate your Business
2: Register with Startup India
3: Get DPIIT Recognition
4: Fill the Recognition Application
5: Submit Required Documents
6: Receive Recognition Number
7: Apply for Tax and IPR Benefits
Step 1: Incorporate your Business for Startup Registration
The first step is to formally incorporate your business. There are three main options to legally set up your startup’s business structure:
– Private Limited Company: This separates your personal assets from the company’s assets and entails more complex compliance and reporting requirements. But it is the most preferred structure for startups aiming to attract investors.
– Limited Liability Partnership (LLP): An LLP offers liability protection like a private limited company but with fewer compliance burdens. It needs at least two partners.
– Partnership Firm: Simplest structure with unlimited personal liability for partners. Requires at least two partners.
Also Read: How Much Income is Taxable in India? Income Tax Slabs Old and New. – FilingWala.Com
Whichever business structure you choose, you’ll need to register it with the respective governing authority:
- 1. For Private Limited Company: File for incorporation with the Registrar of Companies (ROC).
- 2. For LLP: submit registration documents to the ROC.
- 3. For Partnership Firm: register with the Registrar of Firms.
This registration results in a Certificate of Incorporation or Partnership Registration Certificate.
This certificate is proof of your legally registered business entity and is required for recognizing your startup under the Startup India initiative.
Step 2: Register with Startup India
Once you’ve registered your business, it’s time to get registered as a startup under Startup India. Here are the steps to complete online registration:
1. Go to the Startup India website and click on Register.
2. Enter your personal details like name, email ID, mobile number and password.
3. An OTP is sent to your email. Enter this OTP and submit to create your Startup India account.
4. In your account dashboard, fill in information like type of founder, name and stage of startup.
5. Click Submit to complete profile creation.
That’s it! Your startup now has an online account on the Startup India portal. This registration lets you access learning resources, tools, and details of government schemes and benefits.
Step 3: Get DPIIT Recognition for Startup Registration
The Department for Promotion of Industry and Internal Trade (DPIIT) is the government body that recognizes eligible startups.
DPIIT recognition is crucial to unlock major benefits like:
– Income tax exemption for 3 years
– Relaxed public procurement norms
– Faster patent application processing
– Easier winding down of business
Here are the steps to get DPIIT recognition:
1. Log in to your Startup India account.
2. Click on Apply for DPIIT Recognition.
3. You will be redirected to the startup recognition form on the National Startup Portal.
4. Fill in all the required information about your startup.
5. Read and accept the declaration.
6. Click Submit to apply for recognition.
It takes about 1-2 days to receive approval and the digital recognition certificate.
Step 4: Fill the Recognition Application for Startup Registration
The online application for DPIIT recognition requires detailed information about your startup across these sections:
Entity Details: Official name, registered office address, date of incorporation, type of entity etc.
Authorized Representative Details: Name, designation, contact information.
Director/Partner Details: Names of directors/partners.
Startup Details: Problem addressed, proposed solution, uniqueness, revenue model etc.
Self-Certification: Declaration that startup meets DPIIT’s eligibility criteria.
Fill in accurate details across all sections. The uniqueness and problem-solving aspect of your startup will be evaluated based on your application, so focus on highlighting these points.
Step 5: Submit Required Documents
Along with the online application form, you need to submit certain documents as proof:
– Certificate of Incorporation
– Founder’s Authorization Letter
– Proof of Concept (pitch deck, product demo video etc.)
– Tax Registration Certificates
– Funding or Investment Documents (if applicable)
– Patent or Trademark Certificates (if applicable)
– Awards or Recognition (if any)
These documents validate all the details in your recognition application. Submit clear, high-quality scanned copies with your application form.
Step 6: Receive Recognition Number
If your application satisfies all eligibility criteria, your startup will be approved and allotted a unique recognition number.
A digital certificate will also be emailed to you within 1-2 days. Download this certificate and save it as proof of DPIIT recognition.
This recognition is valid for up to 7 years from the date of incorporation/registration.
Step 7: Apply for Tax and IPR Benefits
Getting DPIIT recognition makes your startup eligible for valuable incentives like tax breaks, subsidized patent filing and relaxed compliance norms.
But you need to proactively apply to the respective departments to activate these benefits. Here are key schemes to apply for:
Income Tax Exemption:
– Startups incorporated after 1 April 2016 can apply for 100% income tax rebate for 3 consecutive years out of the first 10 years.
– File exemption application with the Inter-Ministerial Board of Certification.
– Startups can claim rebates on patent filing fees and get 80% subsidy on patent costs.
– Fast-track application processing within 4 weeks.
– Apply through the Startup India online portal.
Relaxed Compliance Norms:
– Startups can self-certify compliance for 6 labour laws and 3 environmental laws.
– Reduces regulatory burden without inspections for 3 years.
– Declare self-certification on Startup India portal.
With these 7 steps, you can get your startup registered and recognized, unlocking the full potential of government schemes, funding opportunities, and incentives. However, if you don’t want to go through all the hassles, then filingwala.com is always there for you. Contact filingwala.com experts for your startup registration in India
Stay up to date with Startup India policy announcements to maximize benefits for your early-stage startup. Partner with a legal expert to ensure seamless application processing and compliance. Filingwala.com is the leading legal expert in Pune for startup registrations in India.
Most importantly, keep innovating and growing your startup that aims to make a difference!
FAQs: Startup Registration in India
Q: What kind of business entity can register as a startup in India?
A: Private limited companies, limited liability partnerships, or partnership firms that are less than 10 years old from the date of incorporation can register as startups. The annual turnover should be under Rs 100 crore.
Q: How long does startup recognition in India last?
A: Startup recognition is valid for up to 7 years from the date of incorporation/registration or until the turnover exceeds Rs 100 crore or the company turns 10 years old, whichever is earlier.
Q: What documents do I need to apply for startup recognition in India?
A: You need to submit your certificate of incorporation, founders’ authorization letter, proof of concept, income tax certificates, details of funding, patents if any, and awards/recognitions if applicable.
Q: Can I apply for startup registration in India if my business is more than 5 years old?
A: Yes, you can apply; however, there are certain conditions to meet. Specifically, your business must be less than 10 years old from the date of registration and have an annual turnover under Rs 100 crore. Notably, the 7-year recognition validity, therefore, starts from the date of incorporation.
Q: How long does it take to get DPIIT recognition and certificate?
A: If your application meets all eligibility criteria, you can receive DPIIT recognition and the digital certificate within 1-2 days.
Q: What costs are involved in registering and recognizing a startup?
A: There are nominal costs involved in incorporating your private company, LLP, or partnership. Recognition under Startup India is free, but you need to pay statutory fees for applying for tax rebates and patent filing.
Q: Can I get investor funding without DPIIT recognition?
A: You can get investor funding without DPIIT recognition but it will be difficult. DPIIT recognition makes startups more appealing to investors by increasing their credibility, as well as unlocking access to beneficial government funding schemes.
Q: What happens if my annual turnover exceeds Rs 100 crore during the 7-year recognition period?
A: Consequently, crossing the Rs 100 crore turnover threshold before 7 years will make your startup ineligible for recognition benefits from that point onwards.
Disclaimer:
Please be advised that the materials provided here are intended solely for informational purposes. Accessing or using the site or its materials does not establish an attorney-client relationship. The information presented on this site should not be considered as legal or professional advice, and it is not recommended to rely on it for such purposes or to use it as a replacement for legal advice from a licensed attorney in your state.
