DPIIT Startup Registration: The Indian government’s flagship initiative, Startup India, seeks to promote innovation and entrepreneurship by giving would-be business owners a platform to fulfill their aspirations, generate employment, stimulate the economy, and gain access to resources, advice, and assistance from the government. An extensive rundown of the Startup India Registration procedure is given in this article.
Tax exemptions for startups, expedited statutory clearances, simple financing, and credit facilities are some of the Scheme’s main advantages. Acknowledged startups also benefit from quick FDI approvals and IP protection rebates. All of these advantages are easily accessible to startups that register under the Startup India Scheme. We understand how important these advantages are to your startup and offer complete support to help you easily obtain startup registration.
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Startup India
The Indian government’s initiative, Startup India, aims to support and foster the development of startups in the nation. Making India one of the world’s most thriving startup ecosystems is Startup India’s ultimate goal. Startups can avail various advantages by enrolling in the Startup India program, such as financial aid, tax exemptions, and incubator access.
Since its introduction in 2016, the programme has played a significant role in fostering innovation, generating employment opportunities, and developing a strong startup ecosystem in India. The government has taken a number of significant actions under the Startup India program to assist and elevate startups and create an atmosphere that allows business owners to prosper. The management of the Startup India Scheme’s initiatives and programs is largely the responsibility of the Department for Industrial Policy and Promotion (DPIIT).
Startup India Scheme aims to achieve
The objective of the Startup India Scheme is to cultivate a flourishing startup culture and create a strong, all-encompassing ecosystem that promotes creativity and enterprise in India.
What is Startup?
A startup is a company that creates novel goods or services to fulfill societal demands or solve current issues. It might also redesign an already-existing good or service, making improvements to provide a superior outcome. A startup’s fundamental quality is its dedication to introducing novel concepts and inventive solutions to the market.
The unique product or service that a startup provides that isn’t presently offered anywhere else in the same way sets it apart from other recent businesses. Innovation and the desire for expansion and improvement are what propel startups.
Qualifications for Registration at Startup India
There are requirements that an entity must fulfill in order to be eligible for Registration with Startup India. The prerequisites for eligibility under the Startup India Scheme are broken down as follows:
- Age of the Applicant: Any Indian citizen aged 18 or above can apply for the scheme.
- Age of the Firm: The company’s Incorporation date should be at most ten years.
- Type of Company: The company should have been incorporated as a Partnership Firm, Private Limited Company, or a Limited Liability Partnership (LLP).
- Annual Turnover: The company’s turnover should be at most Rs.100 crore in any financial year since Incorporation.
- Original Entity: Rather than dissecting or rebuilding an already-existing company, the promoters should have been the ones to create the entity in the first place.
- Innovative and Scalable: The startup should have a strategy for creating or enhancing a good or service, as well as a scalable business plan with significant employment and financial potential.
Businesses that are in the process of creating a new good or service are eligible for benefits under the Startup India policy provided they meet the following requirements:
- Startups that care about this issue should strive to create, implement, or market any good or service that uses cutting-edge technology or intellectual property.
- To increase customer value or workflow, startups should strive to develop new products or enhance already-existing ones.
- Startups have to focus only on creating and marketing a novel product that will improve customer value or streamline operations.
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Startups must receive approval for registration and approvals from the Department for Promotion of Industry and Internal Trade (DPIIT) in accordance with the following standards:
- An incubator is recommended by any post-graduation college.
- recommendation from a central government-approved incubator.
- a patent in the particular field of the good or service that has been filed and published in the Indian Patent Office Journals.
- SEBI registration for startups offering equity and funding services.
- a letter of support for any initiative to encourage innovation from the federal or state governments.
In partnership startups, women or members of Scheduled Caste and Scheduled Tribe should own 51 percent of the shares. They also ought not to have missed any credit payments.
Advantages of Registering with Startup India
For registered startups, the Startup India programme provides numerous important advantages, such as:
- Self Certification: Startups can easily self-certify compliance for 6 Labour and 3 Environmental Laws through a simple online procedure.
- Tax Exemption: For the first ten years following their incorporation, recognized startups are exempt from income tax for three straight fiscal years. In accordance with Section 56 of the Income Tax Act, they may also petition for exemption from angel tax.
- Simple company winding up: New businesses have ninety days from the date of application to close their doors.
- Patent Application and IPR Services: Patents and other intellectual property rights services are processed at a significantly reduced cost for startups that have received DPIIT recognition. These startups also enjoy significant benefits. Startup India offers a 50% reimbursement for trademark applications and an 80% reimbursement for patent applications.
- Funding Availability: Startup India provides two funds to assist companies that have registered: a. Startup India Seed Fund Scheme (SISFS) b. Fund of Fund for Startups (FFS)
- Less Stringent Public Procurement Regulations: DPIIT-recognized startups are eligible to have all public procurement regulations relaxed for government ministries, departments, and public sector enterprises.
The process in India for registering a startup
Step 1: Register Your Company
Incorporating your company as a Limited Liability Partnership (LLP), Private Limited Company, or Partnership firm is the first step. This entails going through the standard channels for registering a business, including completing the application and receiving the Certificate of Incorporation or Partnership registration.
Step2: Create an account with Startup India
The next step after incorporating is to register your company as a startup. It’s an easy process that you can finish online. Click the “Register” button after visiting the Startup India website to get started. After entering your name, email address, and phone number and setting a password, click “Register.”
Enter the one-time password (OTP) that was sent to your email after that, and add more information like the user type, name, and startup stage. In order to create your Startup India profile, click the “Submit” button. Your company will be identified as a startup under the Startup India program upon completion of this Registration, qualifying it for a number of advantages and assistance.
Step 3: Acquire Recognition from DPIIT
Acquiring recognition from the Department for Promotion of Industry and Internal Trade (DPIIT) is an essential step that follows the creation of the Startup India website profile. Startups that receive this recognition can take advantage of a number of advantages, including access to Fund of Funds, relaxation of public procurement regulations, self-certification for labor and environmental laws, easy company winding up, high-quality intellectual property services, and tax exemption for three years running, including tax exemption on investments above fair market value.
Applying for DPIIT Recognition is as simple as logging in to the Startup India website using your registered profile credentials and selecting the ‘Apply for DPIIT Recognition’ option found under the ‘Recognition’ tab. Select “Apply as Company or LLP” or “Apply as Partnership Firm” on the ensuing page.
In the event that you choose “Apply for Company or LLP,” the National Single Window System (NSWS) website will be displayed. To begin the DPIIT recognition process, companies and limited liability partnerships (LLPs) must register on the NSWS website and add the “Registration as a Startup” form. By taking this step, your startup will be formally recognized under DPIIT and become eligible for all of the advantages and assistance that the Startup India program offers.
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Step4: Send the Registration Documents
In order for your startup to be recognized by DPIIT and to finish the registration process, the following documents must be submitted:
- Incorporation/Registration Certificate of your startup.
- Proof of funding, if any.
- Authorization letter of the company’s authorized representative, LLP, or partnership firm.
- Proof of concept, such as a website link, a pitch deck, or a video (applicable for validation/early traction/scaling stage startups).
- Patent and trademark details, if any.
- List of awards or certificates of recognition, if any.
- PAN (Permanent Account Number) Number.
Step 5: Eligibility Conditions Self-Certification:
Verify for yourself that your company satisfies the requirements listed below:
- Your business is a Private Limited company, LLP, or partnership firm.
- Your business has been incorporated or registered in India for at most five years.
- Your company’s turnover is at most Rs. 100 crore.
- Your company is constantly innovating or improving existing systems.
- Your business is based on a fresh idea, not splitting up or reconstructing an existing business.
Step 6: Get Your Identification Number
You will instantly receive a recognition number after submitting an application for registration. Once the authority has reviewed all of the documents you uploaded, the certificate of registration or incorporation is issued.
It is important to ensure accuracy when uploading data to prevent discrepancies, as mistakes can result in fines of at least Rs. 25,000 or up to 50% of your paid-up capital.
It is important to ensure accuracy when uploading data to prevent discrepancies, as mistakes can result in fines of at least Rs. 25,000 or up to 50% of your paid-up capital.
Read also: Everything You Need to Know About Registering an MSME Online.
Advantages of the Startup India Program
As mentioned above, Startup India offers a wide array of benefits to startups, which are detailed below:
Patents, Trademarks, and Design Registration
You can easily contact any facilitator from the government’s list if your startup needs a patent for an invention or a trademark for business. You will then only be responsible for the statutory fees, saving you eighty percent on fees.
Funding Support
Given the high-risk nature of startups, obtaining financing can be extremely difficult for many of them due to issues like inexperience, security concerns, or negative cash flows. In response, the government set up a fund with a Rs. 2,500 crore starting corpus and a Rs. 10,000 crore total corpus over four years (that is, INR 2,500 crore annually). It functions as a Fund of Investment funds that partake in the capital of SEBI-registered venture funds indirectly support startups with capital. Self-Certification in Relation to Labor and Employment Laws: Startups can cut compliance costs by self-certifying compliance with labor and environmental laws. By reducing the regulatory load, self-certification frees up startups to concentrate on their main business. Startups may self-certify that they are in compliance with six labor laws and three environmental laws for a period of three to five years following the date of incorporation.
Acts Relating to the Environment Exemption
According to information on the Central Pollution Control Board website, units falling under one of 36 white category industries are exempt from clearance requirements for a period of three years under three environment-related Acts.
Tax Exemption
For three years, startups are exempt from income tax. They need to receive Inter-Ministerial Board (IMB) certification in order to be eligible for this benefit.
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