A startup is a newly formed business or an enterprise, often small, created by an individual or a group of individuals. Startups stand apart from other emerging companies because they provide a unique product or service that you can't find anywhere else. New products and services are created or improved upon, depending on what the company decides to do.
A startup India registration is a business registration process to obtain permission and identification in India. The majority of companies are self-funded until they reach a particular growth stage, and at this time, they may seek outside funding. Businesses' financing possibilities include family and friends, venture capitalists, crowdsourcing, and loans.
Did you know?
Startups are tax-exempt for the first three years of business. To qualify for these benefits, they must first be authorised by the IMB.
Startups in India
Startups are gaining popularity in India. The Indian government, headed by PM, has developed and backed the startup India initiative, with a start-up India registration striving to recognise and promote start-ups throughout the nation. So how to register in startup India? Under the Startup India program, eligible companies may apply to the industrial policy and promotion (DPIIT). It is to be designated as a startup to qualify for tax savings, simplified compliance, and speedier IPR processing, among other benefits.
A business refers to a startup during the first ten years following formation. It was initially seven years, but the government eventually raised it to 10 years. The government did this to promote entrepreneurship and aid new enterprises capitalising on opportunities and tax incentives to thrive. You must first complete the Indian start-up registration procedure to register your business under this scheme.
Also Read: What is Emergency Credit Line Guarantee Scheme (ECLGS)
How Can I Determine Whether or Not My Registration Was Successful?
You will get a certificate of acknowledgement after your application has been accepted and the system has approved your startup. On the Startup India website, you may contact the certificate for free.
Individuals are launching their enterprises in increasing numbers due to federal tax cuts, subsidies, and other help. However, the most exciting part is that the overwhelming majority of firms are established and controlled by young people, which speaks volumes about India's immense reservoir of creative minds.
Because they lacked government assistance at the time and had to do everything on their own, few people invested their whole heart and soul in it. However, since the program's beginning, people have gained confidence in their talents, knowing that the government would back them throughout. As a consequence, they are developing new ideas.
Steps to Register Your Startup With Startup India
The Startup India registration is a step-by-step process, and one has to check thoroughly to register the firm.
Step 1: Incorporate Your Business
The first step in Startup India registration is to make your company a legal entity. Before you begin operations, your business must be incorporated as a Pvt Ltd company, a partnership firm, or a limited liability partnership. Then, you'll need to go through the usual steps to register a company, such as getting the incorporation certificate, the PAN, and any other necessary regulatory standards.
Step 2: Register With Startup India
Are you thinking and wondering how to register a startup company in India? To qualify for government benefits and tax deductions, you must register your firm under the start-up India program. Click here to register your business under the start-up India initiative. The whole process is simple, and one can perform it online. First, go to the startup India web page and complete an application form with your startup or business info. After that, enter the OTP and other information such as the kind of user, the user's name, and the starting stage, among other things. The startup India profile generates as soon as these details are input.
The startup India registration fees are as follows -
The costs for trademark registration differ depending on whether the application is submitted online or by mail. The platform allows startups to create profiles and apply for various challenges. After creating a profile, they can use TDP and counter services resources.
Step 3: An Acknowledgement From DPIIT
In the third step of the startup registration process, you receive confirmation from DPIIT. It is necessary to apply for the DPIIT after establishing a profile on the startup India website. Due to their status as early-stage companies, startups now have access to several privileges, such as lower barriers to public procurement, self-certification under labour and environment regulations, streamlined dissolution procedures, and access to a pool of capital for three years.
Get identified by DPIIT as a new user by clicking the Get recognised. However, you must first click on the dashboard and pick 'DPIIT recognition from the drop-down menu to utilise this function.
Step 4: Recognition and Application of Recognition
Go through the details of the recognition application shown on the website. In the registration details area of this screen, choose to see/ view details from the menu. Please submit the form after you've completed it.
Step 5: Obtaining the Registration Documents
The cost of registering a startup in India is on the Startup India portal. All submissions must be in pdf format; no other form is acceptable. The following papers must be submitted to complete the online registration procedure with start-up India:
- The certificate of incorporation/registration of your business
- Information about the board of directors
- In the case of validation or developing stage business, proofs of the concept include pitch decks, websites, and videos
- Detailed patents as well as trademarks
- PAN
Step 6: Acknowledgement Count
Immediately upon submitting your application, your startup will be assigned a recognition count. The certificate of recognition is issued after all of your paperwork has been reviewed. It should take no more than a couple of days from the time you submit the required information online.
Step 7: Additional Considerations
Patents, design registration, and trademarks: Contact one of the facilitators listed on the government's website for a patent and an idea or a trademark for your business. Patents, brands, and registration of designs: You may save your total expenditures by paying just the statutory charges.
Funding: Financing is one of the most challenging barriers many businesses can overcome. Entrepreneurs have trouble recruiting investors for various reasons, including expertise lacking, security, and an absence of verified cash flow.
There is a government fund to assist individuals in need. Cash will be the significant investment of the SEBI-registered funds for venture capital rather than their own.
Compliance with labour and employment laws: Startups may save money by self-certifying that they adhere to labour and environmental regulations. Conclusion: there is no replacement for self-certification in assisting companies in freeing up time and resources to focus on their core competencies.
Also Read: Government Loan Schemes for Small Businesses In India
Documents That Are Waived Off
Startup India has made substantial modifications to the registration procedure since its inception. Numerous documents that were required for submission have been waived. Examples of papers that are not required for submission at the time of registration include the following:
- Letter of recommendations
- Letter of funding
- GST certificate
- Sanction letters
- Udyog Aadhar
- MSME certificate
Conclusion
Before getting started, a few legal considerations are associated with business owners that every prospective business owner should know. It begins with an awareness of the kind of business and who is initiating it, whether it is a private limited company, a sole proprietorship, or another type of corporation. It is relatively straightforward to register a new business due to many government initiatives. However, you may focus on your primary area of expertise when establishing your business to attract attention to your venture.
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