Have you initiated your Startup venture in India? If yes, then it is a great initiative begun by the government of India in 2016 to give support and motivation to Startups. If this is initiated, the business will get tax benefits, a hassle-free compliance process, and funding opportunities
Are you prepared to start your own venture business in India? Startup The registration enables you to establish a business legally. It interconnects with a solid network of resources and supports systems that assist you in scaling up and succeeding in the competitive market.
PSR Compliance will help you with a hassle-free and efficient Startup India registration process, which allows owners to embark on the journey toward success.
DPIIT Registration for Startups
Under the Startup India scheme, eligible organizations are recognized as Startups by the Department for the Promotion of Industry and Internal Trade (DPIIT), which is part of the Ministry of Commerce and Industry Government of India. While availing recognition from DPIIT for Startup then, it becomes eligible for multiple advantages under the Startup India Scheme.
Eligibility Criteria for the Registration
To register in Startup India, it is essential to be eligible for DPIIT registration and avail of the benefits. So, a Startup must comply with the requirements:
Startup Registration Certifications or DPIIT Recognition Certificates are offered to companies that are registered as LLPs, private limited companies, or registered partnership firms.
The organizations are working towards the development of products/services or processes.
To get a Startup India Registration Certification or DPIIT Recognition Certificate, the organization is not registered under the splitting up/ recreating of an existing company.
An organization should have an annual turnover of less than ?100 crore for any last financial year.
The company should have a scalable business model with high earning potential for 3the creating wealth and employment. The organization should have the possibility of producing jobs or wealth.
Applicants should refrain from defaulting with any organization in the past.
The organization's operation or existence should be at most 10 years from the creation date.
The Process to Register Your Startup in India
Below is a step-by-step procedure to register a startup in India and obtain certification:
1. Incorporate Your Business
Start with incorporating the business. You can select from various frameworks like partnership firm, Limited liability partnership (LLP), or Limited Company. It includes the submission of a registration application with the essential documents and fees with the designated authority.
Partnership Firms: Submit the registration application to the firm's Registrar.
Private Limited Company or LLP: Submit the application registration with the Registrar of Companies (ROC).
Both certifications require a Certificate of Incorporation or Partnership registration confirmation about the legal creation of the business. The professionals of PSR help you to register the company in India easily.
2. Register With Startup India
The entities should register as startups. The whole process is online, so visit the Startup India website and tap on the 'Register' button. Fill out the essential information, such as name, email ID, phone number, and password. After that, enter the OTP sent on email ID and other information like user type, name, startup stage, etc, and apply.
3. Avail DPIIT Registration
When the Startup India profile is established, it is crucial to secure recognition from the Department for Promotion of Industry and Internal Trade (DPIIT). DPIIT recognition offers startups various benefits:
To apply for DPIIT recognition, sign in with the registered ID credentials on the Startup India website and navigate to the 'Apply for DPIIT recognition' option found under the 'Recognition' button. On the next page, choose either 'Apply as Company or LLP' or 'Apply as Partnership firms'.
If you select 'Apply for Company LLP' you are land on National Single Window System (NSWS) website. Here, the organizations and LLPs register and add the 'Registration as Startup' form to start the DPIIT registration procedure.
After successful completion, recognize the Startup under DPIIT, which allows access to comprehensive advantages and support offered by the Startup India Initiative.
4. Recognition Application
On the 'Startup Recognition Form, ' you need to complete the details like full address, company, directors, information, startup activities, and certification. Tap on the plus symbol on the right-hand side and enter each section of the organization. After filling out all the sections of the 'Startup Recognition Form,' accepts its terms and conditions and click on the 'Submit' button.
5. Get Your Startup Recognition Number
After applying, you will instantly get a DPIIT recognition number. It serves as a primary acknowledgment of the application. However, the official Startup India Certification is issued by a recognized authority. This certification is the formal recognition under the Startup India Initiative; it confirms that businesses comply with all necessary regulations and criteria.
After availing of the certification, you can apply for numerous advantages available under the Startup India scheme, such as tax exemption, IPR services, and patent filing.
Required Documents to Register Under the Startup Business India Scheme
The authorized letter is shown as an authorized representative of the organization, LLP, or Partnership Company.
PAN Number of Business
Depending on the startup stage, extra documents are needed, such as proof of funding, patent and trademark details, pitch deck, website or app link, etc.
Registration certification for the Startup: For detailed information, specific documents require different company registration types, or else the particular page and steps must be checked.
Applicant identity proof
LLP and Partnership deed in case of organization
MOA and AOA in case of a firm
Advantages of Startup Registration
Below, we describe some of the leading benefits of Startup Registration:
Easily Apply for Government Tenders
It is very easy for startups in India to be eligible for Government tender. They are excused from the prior experience or turnover requirement required for conventional firms responding to Government Tenders.
Easy Access to Funds
Most startups suffer from financing problems because they need more expertise, they need more collateral, or their cash flows are low, making them a high risk for investors. To avoid this, the government has established a fund with an initial amount of Rs. 2,500 crore and is planned to reach Rs. 10,000 crore within four years. This fund works as a fund of funds as it invests in the capital of venture funds registered with SEBI and, therefore, extends financial support to start-ups indirectly.
Income Tax Exemption
An eligible startup can avoid payment of Income Tax for 3 Financial Years out of the initial ten Financial Years of its existence.
Tax Savings for Investors
Any person who invests their capital gains in venture funds established by the government will enjoy a capital gains tax exemption, which considerably benefits all startups by attracting more investors.
Relaxed Public Procurement Norms
The DPIIT recognizes that startups can tender in public contracts and do not have restrictions on entry, such as turnover and experience. This has resulted in broad business prospects for government departments, ministries, and public sector undertakings.
How Many Days Does DPIIT Take to Register a Startup?
Usually, the DPIIT Certificate of Recognition is processed very fast; it may take just up to 2 working days upon submission of the application.
Nevertheless, the total time it may take to register your Startup at DPIIT may range up to 10-15 working days. This extended timeline also includes the steps for the registration of the Startup, the incorporation of the Startup, getting some documents, registering with the MCA, registering with Startup India, etc.
Startup India Registration Fees
The registration process under Startup India and DPIIT is usually simple and free of cost. But, incorporation with the MCA incurs extra charges like:
Stamp duty
Director identification number (DIN)
PAN/TAN application fees and GST registration
Reservation name
Incorporation cost based on authorized capital
This charge depends on various factors, including business entity types, professional charges, and other specific needs.
Select PSR Compliance for Your Startup Registration!
Pick PSR Compliance professionals to offer its support in availing Startup India certification. Our professional team is highly supportive and navigates through the whole process of registration easily. We guide you from company registration to securing a DPIIT certificate. Our company ensures that we offer comprehensive support to meet compliance requirements with affordable Startup India registration costs and pave the path toward success and growth.
Frequently Asked Questions
1. Who can register as a startup in India?
Any business entity, such as a private limited company, LLP, or partnership firm, can qualify for startup registration if it satisfies the government's eligibility requirements.
2. How can I register my startup with Startup India?
You can sign up your startup through the official Startup India website by submitting the required information and documents. The process is straightforward and conducted online.
3. Can I register my existing business as a startup?
Yes, you can register your existing business as a startup, provided it fulfills the eligibility requirements.
4. What is a Startup India certificate?
A Startup India registration certificate is an official document granted by the Department for Promotion of Industry and Internal Trade (DPIIT) that officially designates a business as a startup under the Startup India program, qualifying it for a range of benefits.
5. What documents are required for DPIIT startup registration India?
To register a startup with DPIIT, you'll need to provide several documents. These include the certificate of incorporation or registration for your company, evidence of funding, an authorization letter, proof of concept, information on any patents or trademarks, and your PAN number.
6. What is the cost of a DPIIT certificate?
The Ministry of Commerce and Industry does not impose any fees for obtaining a DPIIT Certificate of Recognition for Startups.
7. Who can qualify for a startup certificate in India?
To be eligible for startup recognition, an entity must meet the following criteria:
The turnover must be below INR 100 Crores in any of the preceding financial years.
The entity can be recognized as a startup for up to 10 years from its date of incorporation.
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