Startup Registration in India
Start-ups are the new trend in India. These companies can be a private company or public company or LLP. This type of company can be started with a single person or small group of members who come together with a new idea or renovate the existing idea and market them, so this is what start-ups are.
Start-ups are small and innovative. They are always open to new challenges, adapt to changes in the market conditions, adopt new technologies for the betterment of the business.
Funding for start-ups is made simple. The government of India has issued 10000 crore rupees as capital for start-up businesses. Further, it also assures any banking institutions for funding to these types of companies. The benefit of getting registered as a start-up is that you are exempted from tax for 3 years if you have a certificate from Inter-ministerial Board (IB).
For Research and development start-ups, 7 new research have been set up for encouraging start-ups.
Investors who are interested in funding start-ups are eligible for exemption of capital gains from the government. So isn’t it good news for start-ups as they face a lot of financial problems?
But start-ups face a lot of problems. Many start-ups cannot stand long in the market due to a lack of strategies. Also, this type of business won’t reap immediately after sowing, it takes a lot of time and patience. Many people hesitate to join hands with start-ups as they include risks and also it is very stressful as you have to work for hours and yet you will be paid less.
Process For Registering startup in India
In order to register your company as a start-up, first, you need to incorporate your company as a private company or public company, or as LLP by following normal procedures prescribed for these type of companies.
The next step is to register your company as a start-up through online mode which is very easy. You just have to log on to start up the India website and fill up the details in the form. You will get OTP and validate it. Your profile is created.
Then you must obtain Department for Promotion of Industry and Internal Trade (DPIIT) Recognition. This helps the start-ups to avail some advantages like getting access to intellectual property services, easy winding up of business, funding facilities, 3 years tax exemption.
You just have to choose the Get recognized button or if your existing user you must go to your dashboard and then click DPIIT recognition. You have filled the start-up recognition form and submitted it. For that, you will be required,
- Incorporation certificate of a start-up.
- Director details.
- Pan number.
- Trademark or patent details if required.
After submitting all the requirements you will get your recognition certificate within 2 days. Make sure that whatever you have uploaded must be valid, in case if it turns out forged or not valid you will have to bear a penalty of 50% of your paid-up capital of the minimum fine of ? 25 thousand.
If your start-up requires any trademark or patent registration you can go to the officer of the start-up registry and apply for it with an 80% of exemption on the expenses
Mandatory Documents Required for Startup India registering process
- Incorporation certificate.
- Registration certificate.
- PAN card.
- Contact details of the applicant.
- Information about Companies.
- Details about directors.
- Details about authorized representatives by the company.
- Product description.
- Website pitch, deck video patent any 1.
So this was all about start-ups and their registration process. Hope it is helpful.