Introduction
The Startup India initiative, launched by the Indian government, aims to foster entrepreneurship in the country. As part of this initiative, the government has streamlined compliance requirements for existing businesses to support their growth.
Entrepreneurs can enjoy benefits including tax holidays, simplified bank loan procedures, and access to funds like SIDBI’s Fund of Funds or Startup India Seed Funds through DPIIT Startup India recognition.
To register as a startup, entities need to sign up on the Startup India portal and apply for DPIIT recognition.
What is DPIIT Startup Registration in Bihar?
DPIIT, which stands for the Department for Promotion of Industry & Internal Trade, serves as the central department for coordinating efforts among all central and state government departments to advance this initiative.
Additionally, DPIIT is tasked with recognizing startups under the Government of India’s Startup India policy. Once a startup is recognized, it becomes eligible for various benefits under this policy.
Benefits of Startup India Registration in Bihar
After obtaining the DPIIT Certificate of Recognition for Startups, businesses can enjoy the following benefits:
Self Certification: Startups can self-certify compliance under 3 Environmental Laws and 6 Labour Laws.
Start-Up Patent Application: Recognized startups only need to pay 80% of the fees for Patents, trademarks, copyrights, and design applications, with the option for fast-tracking patent applications.
Easier Public Procurement Norms: Startups can list their products on the Government e-Marketplace without submitting Earnest Money Deposit, and they are exempted from Prior Experience/Turnover requirements in all Central Government ministries and departments.
Easy Company Winding Up: Startups can wind up their company within 90 days of applying for insolvency under the Insolvency and Bankruptcy Code, 2016.
Funds of Funds: Eligibility for Rs. 10,000 crore funds from Alternative Investment Funds.
Credit Guarantee Fund: Access to Rs. 2000 crore Credit Guarantee fund through the National Credit Guarantee Trust Company or SIDBI over 4 years.
Tax Exemptions: Startups can apply for Tax exemption under section 80 IAC of the Income Tax Act upon obtaining the Certificate of Recognition. They can also apply for Angel Tax Exemption. Additionally, recognized startups are exempted from income tax for 3 consecutive fiscal years out of their first ten years since formation after obtaining tax exemption clearance.
Eligibility Criteria for Startup India Registration in Bihar
To qualify for the DPIIT Certificate of Recognition, a startup must meet the following eligibility criteria:
Period of Existence of Entity: The company should not have been in existence and operating for more than 10 years from the date of its formation.
Type of Entity: Recognition is provided to companies incorporated as a Private Limited Company, a Limited Liability Partnership (LLP), or a Registered Partnership Firm.
Annual Turnover: The firm should have an annual turnover of Rs. 100 crore for any fiscal year since its establishment to qualify for the DPIIT Certificate of Recognition.
Original Entity: The company should not have been formed by splitting up or recreating an already existing entity.
Innovative Scalable Entity: The entity should be engaged in developing or improving a product, process, or service. It should have a scalable business model with high potential for wealth and employment creation.
Potential for Wealth and Employment: The firm should have the potential to generate employment or create wealth.
Fees for Startup India Registration in Bihar
The fee for obtaining DPIIT recognition under the Startup India initiative is only 4,999 rupees, and the entire process typically takes 20-25 business days.
How to Register Startup India in Bihar?
To register your company as a startup, first, you need to incorporate it as a private company, public company, or LLP following the standard procedures for these types of companies.
Next, you can easily register your company online as a startup by visiting the Startup India website, filling out the form, and validating the OTP to create your profile.
Then, you should obtain DPIIT Recognition, which provides startups with advantages such as access to intellectual property services, easy business winding-up, funding facilities, and 3 years of tax exemption.
Simply click on the “Get recognized” button or go to your dashboard if you’re an existing user, then select DPIIT recognition. Fill out the startup recognition form with details including:
Incorporation certificate of the startup
Director details
PAN number
Trademark or patent details if required
After submitting the requirements, you will receive your recognition certificate within 2 days. Ensure all uploaded documents are valid to avoid penalties, which could be 50% of your paid-up capital or a minimum fine of Rs. 25 thousand for any forged or invalid documents.
If your startup requires trademark or patent registration, you can apply for it at the startup registry office with an 80% exemption on expenses.
Conclusion
In conclusion, the Startup India initiative in Bihar provides valuable support for aspiring entrepreneurs. By registering as a startup and obtaining DPIIT recognition, businesses can unlock numerous benefits, including tax exemptions, easier compliance, and access to funding. With straightforward registration procedures and eligibility criteria, startups have the opportunity to thrive and contribute to economic growth.
We at eStartIndia will help you in registering your startup with every legal aspect that is required with the help of our efficient team.
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