India is a pool of new businesses in recent times. While setting up a new business is nothing less than running a marathon, the advent of liberal policies and portals has made this process relatively simple. A startup is a newly built small business that offers a product or service. It is comparatively limited to an established company and requires fewer resources.
With the significance of startups, it is critical to register yours under the Startup India initiative of the Government of India. This initiative was started and promoted to recognize and boost the business system of the nation. As such, any business in the country needs to be registered under this drive to get access to a lot of government-sponsored resources.
Let's read more about it!
Startup registration has become relatively easy owing to technological developments and online mechanisms. Let's see the entire process of registration in India:
The first step to registering a startup in India should be the incorporation of your business. Every owner must incorporate the enterprise as a partnership firm, or a private company, or a limited liability partnership. The individual must file all the required documents with the fees to the Registrar of Companies or the Registrar of Firms along with the registration application.
After the incorporation of the business, you must register your business as a startup. The entire process of registration is online and hassle-free. Firstly, you need to visit the official website of Startup India and click on the register button. You have to add all the required personal information.
Next, you have to enter the OTP sent on your email Id. Moreover, you have to fill in details like the type of user, name, stage of the business, etc.
Lastly, you have to click the submit button. After the profile is ready, businesses can apply for various mentorship programs and can have access to resources like government schemes, pro-bono services, state policies, etc.
The next step is to avail distinction of the Department for Promotion of Industry and Internal Trade (DPIIT). Start with logging in with your registered profile credentials on the website of the Startup India program. Then click on the "DPIIT Recognition for Startups" button under the "Schemes and Policies" tab. After this, click on the "Get Recognized" button on the next website page, which will open a new page. You need to scroll down this page and click on the button asking you to submit your application for recognition.
This recognition helps your business to access benefits like the easy winding of the company, tax exemption on investment above fair market value, relaxation in public procurement norms, etc.
The startup recognition form needs you to fill in some details like entity details, partner details, required activities, self-certification, etc. Enter all the sections of the recognition application and accept all the terms and conditions. And click on the submit button.
Here is a list of some of the most significant documents that you must have for the registration:
1. Proof of funding
2. Incorporation certificate of the business
3. Patent details, if any
4. PAN number
5. List of recognitions, if any
6. Website link
7. An authorized letter from the authorized representative of the company.
After applying, you will get a recognition number for your registered business. Generally, it takes two days to examine and verify all the submitted documents. After two days, a certificate of recognition will be issued to you.
One must be very careful while uploading the documents. Upon verification, if they find that wrong documents are uploaded, or any forged document is uploaded, a specified amount of fine is charged by the accused. In such a case, you shall be liable to pay a fine of 50% of your paid-up capital of the startup with a minimum fine of Rs. 25,000.
The Startup India Program has changed the procedure of registration in India. The initiative has exempted many previous requirements now. Here is a list of some documents that are not required now for this registration:
1. Sanction letters
2. MSME Certificate
3. GST Certificate
4. Udyog Aadhar
5. Recommendation letters
1. The Indian government has tried to reduce the problems caused by the shortage of funds for a startup. A fund with an initial corpus of INR 2,500 crore and a total corpus of INR 10,000 crore for 4 years has been set up to fulfil the purpose.
2. The government has also issued a list of facilitators to help the early-age trades with patent registration. they can approach these facilitators approved by the government. With this provision, you need to bear only the statutory fees.
3. The Indian enterprises incorporated on or after 1st April 2016 can apply for the income tax exemption for up to three years.
Altogether, registering a startup is a much simple process now. Watch out for this space for similar content!