Startup India Registration

Introduction

On January 16, 2016, Startup India was established. The Indian government has started and pushed it under the direction of our prime minister, Mr. Narendra Modi. Startup India's main goal is to give goods and services a route to being helpful and inventive. The employment rate in India is expected to increase significantly as a result of this scheme, and also the number of documents needed for company registration has been amended to reflect this. India ranks third worldwide as a startup ecosystem, based on one of the studies by NASSCOM and Zinnov. 

What is Startup India Registration?

The government wants to enable startups to develop via design and invention through this initiative. The Startup India Movement's goals are listed below. 

The action plan includes assisting startups among other things: an improved infrastructure that includes incubators IPR facilitation, such as simplified patent application the improved regulatory environment, which includes tax advantages, simpler compliance, faster company formation, quickest process, and more. Increasing financing opportunities is an aim.

Giving the startup ecosystem's players access to a sizable networking database. A business organization must meet the following requirements to be perceived as a start-up under the  Scheme:

• The company must be listed as a Private Limited Company under the Companies Act of 2013, a Limited Liability Partnership under the Limited Liability Partnership Act of 2008, or a registered Partnership Firm under the Partnership Act of 1932.

• Since its formation or registration, the company's annual revenue has never exceeded 100 crores of rupees.

• The company strives to innovate, develop, or upgrade its goods, processes, or services, or if its business model is scalable and has a good chance of generating money or jobs.

• The company will be designated as a start-up for a term of ten years.

Benefits of Startup India Registration

1. Cost-saving measures

There has been an 80% decrease in the entire expenditure allocated for patents. According to one of the remarks they issued, the Indian government will disclose all facilitators. The startups are required to manage only the minimal statutory fees.

2. Making a Tender Facility Application

Indian startups are given the Chance to easily submit applications for government contracts. The most rewarding aspect is that these businesses are exempt from the lengthy, tedious requirements that question turnover or experience.

3. A mechanism for tax exemption

Startups that take advantage of the Startup India program would receive a fixed three-year tax exemption. These startups should present the Inter-Ministerial Board certification to be free from tax.

4. More Networking Possibilities

Aspiring business owners of various startups can come forward, get together, and talk about various issues that could benefit from this platform. In a single day, it will result in a tremendous amount of networking.

5. Investor Selection

As a startup, you will have the sole authority to select your investor based on a variety of factors. You can choose from a variety of VCs with ease as a result.

6. Tax Savings Arrangement for investors

Investors are given a facility for tax savings when they invest in venture capital funds created by the government. Getting additional investors means having good starting cash and all the assets you need for your new company.

7. Easy Exit Procedure

If you intend to wind up for several unspecified reasons, you can request a winding process. You will have 90 days from the application's start date to complete things.

8. A simple registration procedure

Using a smartphone application or their official website, emerging startups can sign up for the Startup India Initiative. Uploading papers online is required for confirmation.

9. Upgraded Centers for Research and Development

There will be a significant increase in the total number of R&D centers. At most seven more research parks are expected to be established.

10. Direct Access to funds

To support Indian businesses, the Indian government has allocated INR 10,000 crore for venture capital. Since banks and other financial institutions will step forward to support venture capital, lenders may rest assured.

11. Time-saving requirements

The main goal of doing it is to save you time, money, and money spent on the registration process. Three environmental statutes and three labor regulations provide startups the power to verify their compliance. For the same, a mobile startup application is needed.

Documents required for startup India Registration

There are some documents that are necessary for the registration of Startup India that is given below:

• Certificate of Incorporation

• MOA & AOA

• List of Directors or Designated Partners

• Contact details of Directors/Partners

• Information related to Awards/certificates

• Details related to the amount of investment and investors.

• Details of Intellectual Property Rights Registration

• Website Link/Mobile App Link

• Udyam Registration/MSME Registration

• Business Plan and Growth Plan

Process of startup India Registration

1. To establish your company

The first step is to establish your company as a legal organization. You must register your company as a Private Limited Company, an LLP, or a registered Partnership Firm to do this. The person can submit a request for company registration by going to an MCA portal.

2. Sign up with Startup India

To register your business for the Startup India program, go to the Startup India website. You'll discover a registration form as soon as you arrive on this page. Make sure to carefully read the form and complete it as instructed.

3. Submit PDF-formatted documents online

Along with the registration form, you need a letter of authorization.

4. Give details About Tax Exemption

Startups are exempted from income tax for any consecutive 3 years within 10 years of their period of a startup.

5. Self-certification requirements

• Your business needs to be set up as a private limited company, a partnership, or an LLP.

• Not earlier than ten years must pass from the incorporation of your company into a legitimate legal organization.

6. Obtain an identification number

The portal will immediately give the identification number after receiving the registration application.

How can eStartIndia help you with Startup India Registration?

We at eStartIndia will help you in registering your startup with every legal aspect that is required with the help of our efficient team.

Author:

Archita Sharma
Kanpur
Archita Sharma, IV year BA.LLB (Hons.) student from PSIT College of Law