STARTUP REGISTRATION

About Start-up Registration- A start-up is a newly established business, usually small, started by 1 or a group of individuals. Start-up offers a new product or service that is not being given elsewhere in the same way. The business either develops a new product/ service or redevelops a current product/service into something better.

Benefits of Start-Up Registration:-

1. Eligibility for Tax exemption-Eligible Start-ups can be exempted from paying income tax for 3 consecutive financial years out of their first ten years since incorporation.
2. Eligibility to avail funding from FOF scheme- Under Funds of Funds for Start-ups Scheme already more than Rs. 1600 crore is invested in 251 Start-ups. You may be one of the Start-ups for the remaining Rs. 8,400 crore corpus.
3. Priority Govt. Tender and Procurement Scheme-Exemption from prior experience or turnover and Security deposit for filing tenders Opportunity to list Start-up products on Government e-marketplace for market visibility.
4. No Angel Tax up to Rs. 25 crore funding- Investments into eligible Start-ups by Accredited Investors, Non-Residents, AIFs, closely held listed companies may also be exempted under Section 56 (2) (VIIB) of Income Tax Act, 1961.
5. Labour Inspector Gone for Start-ups- No more Labour Law Inspection fear for Start-ups. Recognised Start-ups can self -manage their PF, ESIC, Gratuity and Environmental Law Compliance through simple self-declaration.
6. Discount in Trademark & rebate in Patents fees- Fast tracking of Start-up Patent application, Upfront 50% discount on Trademark fees, 80% Rebate on Patent filing fees.
7. Now Loan from Foreign Investors (ECB) is a cake walk-Recognised Start-ups can avail loans from Non-Resident Investors (External Commercial Borrowings-ECB) up-to $ 3 million every financial year through simple RBI compliance mechanism.
8. Private Limited can take deposit from its members- For a period of five years from the date of its incorporation under the Companies (Acceptance of Deposits) Rules, 2014.
9. Eligibility for availing State Govt. Incentives- Like Maharashtra State GST rebate scheme, Many other Loan and Rebate Incentives are announced by different State Governments of India.

Pre-requisites or Star-Up Registration:-

1. You must register your new company as a Private Limited Company, Partnership firm or a Limited Liability Partnership
2. Your business must be incorporated/registered in India, not before 5 years.
3. Turnover must be less than Rs. 25 crores per year and does not exceed Rs. 100 crore.
4. Innovation is a must– the business must be working towards innovating something new or significantly improving the existing used technology.
5. Your business must not be as a result of splitting up or reconstruction of an existing business.

Procedure for Start-Up Registration with Department for Promotion of Industry and Internal Trade:-

1. You must first incorporate your business as a Private Limited Company or a Partnership firm or a Limited Liability Partnership. For this follow all the normal procedures for registration of any business like obtaining the certificate of Incorporation/Partnership registration, PAN, and other required compliances.
2. Click on ‘Register’ and provide details OR Simply register using any of your social media accounts.
3. Provide OTP and other details like, start-up as type of user, name and stage of the start-up, etc.
4. Go to ‘Get Recognised’ directly. On the ‘Recognition Application Detail’ page, click on ‘View Details’ under the Registration Details section
5. Fill up the ‘Start-up Recognition Form’ and click on ‘Submit’

Documents required for Start- up Registration:-

1. A letter of recommendation/support- A letter of recommendation must be submitted along with the registration form. Any of the following will be valid-
(i) A recommendation (regarding innovative nature of business) from an Incubator established in a post-graduate college in India , 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) A letter of recommendation (regarding innovative nature of business), from an Incubator, recognized by the Government of India in DIPP specified format; OR
(iv) A letter of funding of not less than 20% in equity, by any Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel Network, duly registered with SEBI that endorses innovative nature of the business; 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.
2. Incorporation/Registration Certificate- You need to upload the certificate of incorporation of your company/LLP (Registration Certificate in case of partnership)
3. Description of your business in brief- A brief description of the innovative nature of your products/services.
4. Proof of concept like pitch deck/website link/video (in case of a validation/ early traction/scaling stage start-up) respectively
5. Director details
6. Patent and trademark details (Optional)
7. PAN Number