Startup India Registration

Startup India Registration - An Initiative By Indian Government

Are you planning to register your startup under Startup India? At Certifications Bay, we offer comprehensive Startup India registration services to help you navigate the process with ease. Our team of experts is dedicated to providing high-quality services to ensure a hassle-free experience. Contact us today to learn more!

What is Startup India Recognition?

The Startup India campaign, launched by the Government of India in 2015, aims to foster a robust ecosystem for innovation and encourage the startup culture in India. The initiative focuses on providing funding support, simplifying the registration process, and promoting partnerships between academia and industry. Since the launch of this scheme, India has emerged as the third-largest startup ecosystem globally, with an annual growth rate of 12% to 15%.

The scheme has also encouraged women entrepreneurship and inclusivity, with efforts to align domestic policies with global trends.

Startup India registration offers various benefits such as tax exemption for three years, reduced trademark registration fees, and patent registration.

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Eligibility Criteria to Apply For Startup India Registration

The entity seeking Startup India registration must be registered as a private limited company, partnership firm, or limited liability partnership.

In any of the preceding financial years, the turnover of the startup should not exceed INR 100 Crores.

A company can be recognized as a startup for up to 10 years from the day of its registration.

To be eligible for startup India registration, the entity should focus on innovation and improvement of existing products, services, or processes, with the potential to generate employment and create wealth. However, an entity formed by splitting up or reconstruction of an existing business will not be considered a startup.

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Who is Not Eligible For Startup India Registration?

A Sole Proprietorship Firm

A Firm which is older than 10 years.

A firm having turnover more than 100 crore

A firm which was founded according to the notary partnership agreement.

Benefits under DPIIT Startup India Initiative

Self-Certification

The implementation of self-certification aims to alleviate the regulatory burden on startups and enable them to concentrate on their core business activities.

Benefits:

The Startup India registration process has made it possible for startups to self-certify their compliance with six labor laws and three environmental laws through a simple online procedure.
Under the environmental laws, startups classified under the “white category” by the Central Pollution Control Board (CPCB) are authorized to self-certify their compliance, with random checks conducted as necessary.
As for the labor laws, startups will not be subjected to inspections for a period of five years, unless a credible complaint of violation in writing is received and verified.

Labour Laws:

The Payment of Gratuity Act, 1972
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
The Employees’ State Insurance Act, 1948
The Contract Labour (Regulation and Abolition) Act, 1970
The Building and Other Constructions Workers’ (Regulation of Employment & Conditions of Service) Act, 1996
The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979

Environment Laws:

The Air (Prevention & Control of Pollution) Act, 1981
The Water (Prevention & Control of Pollution) Act, 1974
The Water (Prevention & Control of Pollution) Cess (Amendment) Act, 2003

Eligibility:

Startups recognized by DPIIT are those that were incorporated within the past 10 years.

Registration Process:

go to the Shram Suvidha Portal of the Ministry of Labour and Employment.
Create an account on the Shram Suvidha Portal, and then proceed to log in.

Once you have logged in successfully, select the “Is Any of your Establishment a Startup?” link.

Adhere to the provided guidelines.

Startup Patent Application and IPR Application

Fast-tracking of Startup Patent Applications: The process of examining patent applications filed by startups will be expedited, enabling them to realize their worth at a faster pace.
Panel of facilitators to assist in filing of IP applications: To ensure smooth implementation of the scheme, a group of “facilitators” will be appointed by the Controller General of Patents, Designs, and Trademarks (CGPDTM), who will also oversee their actions and responsibilities. These facilitators will offer general advice on various aspects of intellectual property and furnish information on safeguarding and promoting intellectual property in foreign nations.
Government to bear facilitation cost: In this initiative, the entire fees of facilitators for any quantity of patents, trademarks, or designs filed by a startup will be covered by the Central Government. The statutory fees, on the other hand, will be the responsibility of the startups.

Rebate on filing of application: During their formative years, startups will be granted an 80% reduction in patent filing fees, which will enable them to save costs.

Eligibility:

To be eligible, the startup must possess recognition from DPIIT.

Easier Public Procurement Norms

Objective

The term “public procurement” pertains to the procedure by which government bodies and state-owned enterprises procure goods and services from private entities. As government organizations wield significant spending power, they present a vast market for startups.

The goal is to simplify the public procurement process for startups, enabling them to tap into another potential market for their products.

Benefits

DPIIT recognized startups can sell their products and services directly to government entities through the online procurement platform, Government e-Marketplace (GeM). It is a significant opportunity for startups to collaborate with the government on trial orders.

Manufacturing startups will be exempted from the “prior experience/turnover” criteria by the government, as long as they demonstrate the capability to execute the project according to specifications and have a manufacturing facility in India.

DPIIT-recognized startups are exempted from submitting Earnest Money Deposit (EMD) or bid security while bidding on government tenders.

Eligibility

Startups need to be recognized by the Department for Promotion of Industry and Internal Trade (DPIIT).

Tax Exemption Under Section 80IAC

Benefits

Eligible startups can be granted an exemption from paying income tax for 3 consecutive financial years within their first 10 years since incorporation.

Eligibility

The startup must be recognized by DPIIT to qualify.

Only Private Limited Companies or Limited Liability Partnerships (LLPs) are eligible to receive tax exemption under Section 80IAC.

The startup must have been incorporated after April 1st, 2016.

Registration Process

After registering, apply for recognition by DPIIT (Department for Promotion of Industry and Internal Trade).

provide information on which documents need to be uploaded for the Section 80 IAC exemption application form.

Documents Required

The Memorandum of Association for a Private Limited Company or Limited Liability Partnership Deed.

If there are any board resolutions relevant to the startup’s application for tax exemption under Section 80IAC, they should be provided as well.
Last three years’ income tax returns.

Annual accounts of the startup for the past three financial years.

Exemption Under Section 56

Benefits

Section 56(2)(VIIB) of the Income Tax Act provides an exemption for startups.

Listed companies with a net worth of more than INR 100 Crore or turnover more than INR 250 Crore can invest in eligible startups and claim exemption under Section 56 (2) VIIB of Income Tax Act.

Startups that are eligible may receive investments from Accredited Investors, Non-Residents, AIFs (Category I), and listed companies with a net worth of over INR 100 Crore or a turnover exceeding INR 250 Crore, which shall be exempt under Section 56(2)(VIIB) of the Income Tax Act.
Eligible startups can receive consideration for shares without being taxed, up to a total limit of INR 25 Crore. This exemption is provided under Section 56(2)(viib) of the Income Tax Act.

Eligibility

The startup must be incorporated as a private limited company.

The startup must have recognition from DPIIT.
Not Investing in specified asset classes.
Startup should not be investing in immovable property, transport vehicles above INR 10 Lakh, Loans and advances, capital contribution to other entities, except in the ordinary course of business.

Registration Process

Register your Startup profile on the Startup India Portal.
Obtain DPIIT Recognition.
Fill in the Section 56 Exemption application form.
You should receive an email from CBDT within 72 hours of submitting the Section 56 Exemption application form.

Easy Winding Up of Company

Objectives

To facilitate the process of closing or winding up operations for startups, enabling entrepreneurs to quickly reallocate capital and resources towards more productive avenues.
To promote experimentation with innovative ideas by entrepreneurs, without subjecting them to lengthy and complicated exit procedures that result in their capital being trapped indefinitely in case of business failure.

Benefits

Under the Insolvency and Bankruptcy Code, 2016, startups that have straightforward debt structures or meet certain income criteria can initiate the process of winding up within 90 days of submitting an application for insolvency.

Once a startup files an application for insolvency, an insolvency professional will be appointed to take charge of the company, and the promoters and management will no longer have control. The insolvency professional will be responsible for managing the company, including liquidating its assets and paying its creditors within six months of their appointment.

After the insolvency professional is appointed, the liquidator will be tasked with promptly closing the business, selling assets, and repaying creditors in accordance with the distribution waterfall outlined in the IBC. This process will adhere to the principle of limited liability.

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Documents required for Startup India Registration.

Certificate of Incorporation/Registration Certificate.
PAN Card of the entity.
Details of Directors or Partners.
Details of Authorised Representative.
The uniqueness of the product or revenue model.
Details about the company’s industry or sector, registered office address, and other relevant information.
Details about the company’s industry or sector, registered office address, and other relevant information.
A concise overview of the business, product, or service along with any notable features of innovation.