WHAT IS STARTUP INDIA SCHEME?

In January 2016, The Startup India Scheme was launched by the Government of India to provide various benefits and incentives to startups such as tax exemptions, funding support, simplification of regulations, and access to networking opportunities.

According to the Startup India Scheme, startups are defined as entities that are less than seven years old and have an annual turnover of less than ₹25 crore. To be eligible for the benefits under the scheme, startups must be registered with the Department for Promotion of Industry and Internal Trade (DPIIT) and meet certain criteria related to innovation, scalability, and potential for job creation.

STEPS INVOLVED IN STARUP INDIA SCHEME REGISTRATION

1. Determine Eligibility: Before registering for the Startup India Scheme, startups must check they meet the eligibility criteria of the government. This includes being less than seven years old, having an annual turnover of less than ₹25 crore, and meeting certain innovation and scalability criteria.
2. Incorporate Your Business: Startups must be registered as a legal entity before applying for the Startup India Scheme. This can be done as a private limited company, limited liability partnership (LLP), or a registered partnership firm.
3. Register on the Startup India Portal: Once the business is incorporated, startups can register on the Startup India portal where they need to provide details such as name, address, date of incorporation, and business activities.
4. Self-certify: Startups must self-certify that they meet the eligibility criteria and provide necessary documents such as a certificate of incorporation, details of directors/partners, and audited financial statements.
5. Receive Recognition Number: After completing the registration process, startups will receive a recognition number from DPIIT which can be used to utilize the benefits and incentives under the Startup India Scheme.
6. Access Benefits: Once registered, startups can access various benefits under the Startup India Scheme such as tax exemptions, funding support, simplification of regulations, and access to networking opportunities. Startups can also participate in various government initiatives and programs aimed at promoting entrepreneurship and innovation.

Overall, the Startup India Scheme provides a great opportunity for aspiring entrepreneurs to launch their business ventures and contribute to the growth of the Indian economy. With the scheme registration, startups can utilize various benefits and incentives that can help them develop and scale their businesses. It is important for startups to carefully follow the registration process and ensure they meet the eligibility criteria set by the government.

ELIGIBILITY CRITERIA FOR STARTUP INDIA SCHEME

To be eligible for the benefits and incentives under the Startup India Scheme, startups must meet certain eligibility criteria of the government. Some of the key eligibility criteria include:

1. Age of Entity: Startups must be less than seven years old from the date of registration/incorporation.

2. Annual Turnover: The annual turnover of startups must be less than ₹25 crore in any preceding financial year.

3. Innovation: Startups must be working towards innovation, deployment, development, or commercialization of new products, processes, or services driven by technology or intellectual property.

4. Scalability: Startups must have the potential for high growth and scalability in terms of employment generation or wealth creation.

5. Job Creation: Startups must demonstrate the potential to create employment opportunities and contribute to job creation in the country.

STARUP INDIA SCHEME: DOCUMENTS REQUIRED

To register for the Startup India Scheme, startups are required to submit certain documents along with their application. Some of the important required documents include:

1. Certificate of Incorporation: Startups should submit a copy of the certificate of incorporation issued by the Ministry of Corporate Affairs (MCA) or any other recognized authority.

2. Details of Directors/ Partners: Startups should provide details of the directors or partners involved in the business, including their names, addresses, and contact information.

3. Audited Financial Statements: Startups should submit audited financial statements for the preceding years to demonstrate their financial stability and viability.

4. Business Plan: Startups are required to submit a detailed business plan defining their objectives, target market, revenue model, and growth strategy.

5. Patent or Trademark Registration: Startups should provide proof of any patents or trademarks registered in their name to showcase their innovation and intellectual property.

6. Letter of Recommendation: Startups should obtain a letter of recommendation from a government-recognized body to support their application for the Startup India Scheme.

BENEFITS OF STARUP INDIA SCHEME

1. Tax Exemptions: Startups registered under the Startup India Scheme are eligible for various tax exemptions and incentives. This includes a complete exemption on income tax for the first three years of operation and an exemption from capital gains tax on the sale of assets.

2. Funding Support: Startups can access funding support through different government schemes and initiatives under the Startup India Scheme. This includes access to credit facilities, venture capital funds, and angel investors who are looking to invest in promising startups.

3. Simplified Compliance: Startups registered under the scheme receive simplified compliance procedures, making it easier for them to focus on their business operations without getting tangled by regulatory requirements.

4. Networking Opportunities: Startups registered under the scheme have access to various networking opportunities, such as mentorship programs, industry events, and collaborations with other startups and established businesses. This can help startups expand their network and gain valuable insights and support from experienced professionals.

5. Intellectual Property Rights Protection: The scheme allows startups to access a fast-track patent examination process and reduced fees for filing patents, trademarks, and designs. This helps startups protect their intellectual property and gain a competitive advantage in the market.

6. Government Procurement: The scheme provides excellent priority to startups in government procurement processes, providing them with opportunities to showcase their products and services to a larger audience.

CHECKLIST OF STARTUP INDIA SCHEME

1. Ensure that your startup is eligible to register under the Startup India Scheme. Startups must meet the criteria set by the Department for Promotion of Industry and Internal Trade (DPIIT) to qualify for benefits under the scheme.

2. Collect all necessary documents required for registration, including the certificate of incorporation, details of directors/partners, audited financial statements, business plan, patent or trademark registration, and letter of recommendation.

3. Register your startup online through the Startup India portal and complete the application process by submitting all required documents.

4. Await confirmation of registration from the DPIIT, which will provide you with a unique recognition number for your startup.

5. Start using the benefits of the Startup India Scheme, including tax exemptions, funding support, simplified compliance procedures, networking opportunities, intellectual property rights protection, and government procurement opportunities.

APPLICATION PROCEDURE FOR STARTUP INDIA SCHEME REGISTRATION

1. Eligibility Check: Before applying for registration under the Startup India Scheme, startups must first ensure that they meet the eligibility criteria of the DPIIT. This includes being a registered entity in India, not more than 10 years old from the date of incorporation, and working towards innovation, development, deployment, or commercialization of new products, or services.

2. Online Registration: Startups can register online through the Startup India portal by creating an account and filling out the registration form. They will need to provide details such as the name of the startup, date of incorporation, business address, industry sector, and details of directors/partners.

3. Document Submission: Along with the registration form, startups are required to submit necessary documents such as the certificate of incorporation, audited financial statements, business plan, patent or trademark registration, and letter of recommendation. These documents will be reviewed by the DPIIT for verification.

4. Application Review: Once the application and documents are submitted, the DPIIT will review them to ensure that the startup meets the eligibility criteria for registration under the Startup India Scheme. If everything is correct, the startup will receive a unique recognition number and confirmation of registration from the DPIIT.

5. Benefits Activation: After confirmation of registration, startups can start using the benefits of the Startup India Scheme. This includes tax exemptions, funding support, simplified compliance procedures, networking opportunities, intellectual property rights protection, and government procurement opportunities.

6. Compliance: Startups must ensure they comply with the regulations and guidelines of the DPIIT to maintain their registration under the Startup India Scheme. This involves timely submission of required documents, adherence to tax and compliance regulations, and participation in government procurement processes when applicable.

STARTUP INDIA SCHEME: DOCUMENTS REQUIRED

To register your startup under the Startup India Scheme, you will need to submit a set of documents to the Department for Promotion of Industry and Internal Trade (DPIIT). These documents are important for verifying the eligibility of your startup and ensuring that you can use the benefits offered under the scheme. Here is a list of the important documents required for registration:

1. Certificate of Incorporation: This document indicates that your startup is a registered entity in India.

2. Audited Financial Statements: These statements provide a clear picture of the financial stability and performance of your startup.

3. Business Plan: A detailed business plan defining your startup’s objectives, strategies, and market analysis.

4. Patent or Trademark Registration: If applicable, proof of registration for any patents or trademarks related to your startup’s products or services.

5. Letter of Recommendation: A letter of recommendation from an incubator, accelerator, industry association, or government-recognized institution supporting the creative nature of your startup.

6. Any other relevant documents: Depending on the nature of your startup and its activities, additional documents may be required for registration under the Startup India Scheme.

It is important to ensure that all the necessary documents are submitted accurately and on time to avoid any delays in the registration process. The DPIIT will review and verify the documents, and then provide you a unique recognition number and confirmation of registration under the Startup India Scheme.

BENEFITS OF STARTUP INDIA SCHEME

The Startup India Scheme offers a range of benefits to registered startups to support their growth and success. Some key benefits include:

1. Tax Exemptions: Registered startups are eligible for various tax exemptions, such as income tax and capital gains tax, for a specified period. This helps reduce the financial burden on startups in their early stages of operation.

2. Funding Support: Startups registered under the Startup India Scheme can access various funding opportunities, such as government grants and subsidies, venture capital funding, and angel investments. This financial support helps startups secure the resources they need to boost their operations.

3. Simplified Compliance Procedures: The Startup India Scheme offers simplified compliance procedures for registered startups, reducing the regulatory burden on them. This includes fast-track patent examination, self-certification for environmental clearances, and easier access to government procurement opportunities.

4. Networking Opportunities: Registered startups have access to a network of mentors, investors, industry experts, and other startups through various events, workshops, and networking platforms organised by the government. This helps startups connect with potential partners and collaborators to grow their business.

5. Research and Development Support: The Startup India Scheme provides support for research and development activities and access to incubation centres, R&D facilities, and technology parks. This helps startups develop innovative products and services that can compete in the market.

CHECKLIST OF STARTUP INDIA SCHEME

• Confirm your startup is registered as a legal entity in India with a Certificate of Incorporation.

• Prepare audited financial statements to show the financial development and performance of your startup.

• Create a detailed business plan defining your objectives, strategies, and market analysis.

• If applicable, obtain proof of registration for any patents or trademarks related to your products or services.

APPLICATION PROCEDURE FOR STARTUP INDIA SCHEME REGISTRATION

1. Create an Account: To begin the registration process for the Startup India Scheme, visit the official website of the Department for Promotion of Industry and Internal Trade (DPIIT) and create an account using your email address.

2. Fill in the Application Form: After creating an account, fill in the online application form with accurate information about your startup, including details about your business model, product or service offerings, and market potential.

3. Upload Documents: Upload the necessary documents required for registration, such as a Certificate of Incorporation, audited financial statements, a business plan, and any other relevant documents.

4. Submit Application: Review the provided information in the application form and ensure all documents are uploaded correctly. When you are satisfied with the details provided, apply for review.

5. Review and Approval: The DPIIT will review your application and documents to ensure they meet the eligibility criteria for the Startup India Scheme. If everything is correct, your startup will be approved for registration under the scheme.

6. Receive Recognition Number: Once your startup is approved, you will receive a recognition number from the DPIIT, which confirms your registration under the Startup India Scheme.

7. Access Benefits: With your recognition number, you can access the various benefits and support services provided under the Startup India Scheme, such as funding opportunities, simplified compliance procedures, networking opportunities, and research and development assistance.