Startup India is a plan to develop an environment to support and nourish entrepreneurship across the country. This plan is aimed at start-up ventures to boost their entrepreneurship by providing financial aid and encourage them with an idea of jobs creation. The campaign was first declared by Prime Minister Narendra Modi on 15th August 2015.
Benefits for startup India:
The benefits for startup India comprise of,
- Startups will be permitted to self-certify compliance with nine labour laws and environmental laws. In the case of labour laws, no inspection will be conducted for a period of three years.
- Startup India enables companies to register through their mobile application and upload relevant documents. There will also be single window clearances for approvals, registrations and filing compliances among other things.
- Patent filing approach will be simplified. The Startup will enjoy a rebate of 80% of the fee in the patent application. The startup will bear only the statutory fees and the government will bear all facilitator fees.
- The Startup India programme will encourage research and innovation among students who are aspiring entrepreneurs and seven new research parks will be set up to provide facilities for startups in the R&D sector.
- Equal opportunities will be provided for both startups and experienced entrepreneurs. Earlier this was not possible because all applicants required either ‘prior experience’ or a ‘prior turnover’. But now, public appropriation norms have been relaxed for startups.
How to establish a startup in India?
The process of establishing a startup an registration under Startup India is simple and requires certain documents to be uploaded. Here is the process below.
Step 1: Incorporating the business:
First, you must incorporate the business as a Private Limited Company or a Limited Liability Partnership or a Partnership firm and make it a legal entity. Also make sure you have obtained all the certificate of partnership or incorporation registration, PAN, and other necessary compliances.
Step 2: Register with Startup India portal:
Log on to the Startup India website and register your business as a startup and fill up the form with details of your business. Upload all the necessary documents, remember all documents should be uploaded in PDF format. The documents that are needed to be upload are,
a) A letter of support or recommendation
A letter of recommendation must be proposed along with the registration form. Any of the following,
(i) An Incubator established in a post-graduate college in India has to provide a recommendation (regarding innovative nature of business) from in a format specified by the Department of Industrial Policy and Promotion (DIPP); OR
(ii) A letter of support by an incubator, which is funded (in relation to the project) by Government of India as part of any specified scheme to promote innovation; OR
(iii) An Incubator recognized by the Government of India has to provide a letter of recommendation (regarding innovative nature of business) in DIPP specified format; OR
(iv) Any Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel Network with not less than 20% in equity, duly registered with SEBI that endorses innovative nature of the business has A letter of funding; OR
(v) A letter of funding by Government of India or any State Government as part of any specified scheme to promote innovation; OR
(vi) A patent filed and published in the Journal by the Indian Patent Office in areas affiliated with the nature of the business being promoted.
b) Incorporation/Registration Certificate
You need to upload the certificate of incorporation of your company/Limited Liability Partnership. Remember all documents should be uploaded in PDF format.
c) Description of your business in brief
Provide a brief description of your products and services and in what way it is innovative in nature. Remember it the product should be innovative, original, and must feature new methods or a new procedure to an old traditional process.
Step 4: Determining to avail tax benefits:
Startups are released from income tax payment up to 3 years. These benefits can be availed only if they get certified by the Inter-Ministerial Board (IMB). Start-ups recognized by DIPP, Govt. of India can now directly avail Intellectual Property Rights (IPR) related benefits without requiring any additional certification from IMB by just clicking “Yes” and the application would be shared with the Inter-Ministerial Board for evaluation.
Step 5: You must ensure that you satisfy the following conditions.
- Your company must be registered as a Private Limited Company or Partnership firm or a Limited Liability Partnership.
- Your business should not be incorporated/registered in India before five years.
- Turnover must be less than 25 crores per year.
- The business must be operating towards innovating something new or significantly upgrading the existing technology.
- The particular startup business should not be an outcome of remodelling of an existing business.
Step 6: Instantly get your recognition number
The certificate of recognition will be assigned after the examination of all your documents, and a recognition number will be received. Be careful while uploading the documents. If any required document is not uploaded or any wrong document has been uploaded or even a document is considered to be a forged, it will lead you to pay a fine of 50% of your paid-up capital of the startup with a minimum fine of Rs. 25,000. Therefore, upload all the documents carefully with the correct format.
Thus, these are the process for registration of a startup in Startup India and its short benefits. This campaign will invoke indigenous startups which will not only make the lives of the people easier through their affordable and comfortable services but will also act as a major supporter for the development and the growth of the Indian economy.
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