If you are talking about the startup giant on the face of the globe after U.S and Britain, then the first name that will pop up in your head is India. Startup culture though seems easier than the rest of the corporate buds but starting from the registration process to thriving in the corporate ecosystem everything is a roller coaster ride for the person owning the business. For any startup, it is much necessary to stand in the market as the products are yet new to the buyers and there is no huge client base also while there is a huge expense on a regular basis.
As per the constitution of India, every startup should be registered under the Department of Industrial Policy and Promotion (DIPP). DIPP which is operated under the Ministry of Commerce and Industry regulates the developmental and promotional growth measures in the industrial sector. Here the query arises as for how to get registered under the DIPP if you are planning for a startup.
Under the startup India scheme, new entrants are relieved from the tax for three years. The government has also provided a fund of Rs. 2500 crore for startups and along with that taking future risks into concern the government has sanctioned a fund of Rs. 500 crore as credit guarantee.
Eligibility for a startup registration
- The legal entity of a startup is governed under three names, i.e. Limited Liability partnership, partnership or a Private Limited company.
- The lifespan of a startup can be no more than five years.
- The annual turnover for a startup is fixed to be a maximum of 25 crores. No startup can exceed this amount of turnover.
- The startup firms should obtain the approval from DIPP.
- To get approval from the Department of Industrial Policy and Promotion, the startup should be funded by Angel Fund, Incubation Fund or Private Equity Fund which in turn must be registered with Securities and Exchange Board of India.
- The firm must have a recommendation letter by an incubation justifying the authenticity.
- It should have got a patron guarantee from the Indian patent and Trademark Office.
Startup India company registration involves the following steps:
- Enter the legal entity of your firm.
- Enter the Registration? Incorporation date.
- Enter PAN number.
- Enter your concerned address, Pin code, and state.
- Fill up the details of the authorized representatives.
- Enter the accurate details of the Directors, executives, and partners.
- Upload the necessary self-certification documents in the prescribed manner.
- File the Registration/ incorporation of the startup and you are done for the registration process.
Once the startup completes all these steps and gets registered, it becomes recognized and gains eligibility for labour and environmental law benefits. Startup registration process in India can get a recommendation letter or registration only if it is innovative in its approach towards developing a product or service or adding to the value of the existing goods or service.