To Promote entrepreneurship to boost economy and increase employment , government of India Introduced Startup India Scheme, startup India Registration provides several benefits that has been provided to startups including tax holiday for period of 3 years to recognised startups.
To get recognised as startups , entity has to apply for recognition as startup on https://www.startupindia.gov.in/ , once application is submitted it is reviewed for “Department of Promotion of Industry and Internal Trade” (DPIIT) and if found eligible , the entity is registered as startup. Please note Income Tax Exemption on profits under Section 80-IAC of Income Tax Act is issued separately.
Meaning of “Startup”
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An entity shall be considered as a Startup:
- Upto a period of ten years from the date of incorporation/ registration, if it is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India.
- Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees.
- Entity is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.
- Provided that an entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Startup’.
- Explanation: An entity shall cease to be a Startup on completion of ten years from the date of its incorporation/ registration or if its turnover for any previous year exceeds one hundred crore rupees.
Government Schemes & Benefits after startup india registration
- Self Compliance under 3 environment and 6 labour laws
- Income tax Exemption
- Reduced Filing fee for Trademark
- Reduced fee for Patent application
- Easier Public Procurement norms
- Easy Winding up
- Reduced Compliance under Companies Act
- Other Schemes launched by Government time to time
Following information are required for Startup India registration :
- Name of Company
- Name of Startup
- Website address of Company
- Name , age qualification of Directors and Promoter / Authorized Representative
- Current Number of Employees including Founders
- Trademark or other IP details
- Is the startup creating an innovative product / service / process or improving an existing product / service / process ?
- Is the startup creating a scalable business model with high potential of employment generation or wealth creation ?
- Brief note supporting the options chosen above for innovation, improvement and scalability
- Has your startup received any funding?
- Any awards/recognition received by the entity , if yes , provide document in support
- What is the problem the startup is solving ? 150 to 200 words minimum
- How does your startup propose to solve this problem? 150 to 200 words minimum
- What is the uniqueness of your solution ? 150 to 200 words minimum
- How does your startup generate revenue? 150 to 200 words minimum
- App Link /Pitch Deck etc if any
- COI , MOA and AOA of Company
- PAN of Company
