How to Register your Business under Start-up India Government Scheme?
The government of India has so far introduced numerous measures for the advancement and strengthening of the Indian startups. Till now, a great number of benefits for the growth of Indian startups have been given. The government has likewise opened numerous ways for giving economic assistance to the MSMEs and small businesses.
Ministry of Commerce & Industry had begun the drive of boosting the Startup businesses under the umbrella of a remarkable initiative known as Start-up India Stand-up India Scheme.
Under this scheme, a business firm will continue to be termed as a Start-up, if its annual turnover for any of the previous fiscal years since the commencement of business doesn't exceed ₹100 crores. Previously this threshold limit was ₹25 crores.
Additionally, the period for recognition of a business as a ‘start-up’ has been raised from 7 years to 10 years.
We shall first understand the concept of the Start-up India Stand-up India scheme.
A. An overview of Start-up India Stand-up India scheme
Nowadays, the “start-up culture” is gaining popularity in India. In various fields, the Start-ups are achieving exceptionally well known in India. With a view to enhance the Indian economy and encourage entrepreneurship, the Government of India, under the administration of the Ministry of Commerce & Industry, had begun the Start-up India Stand-up India initiative in 2015 to uplift and grow the Indian start-ups.
B. Basic Criteria of getting registered under Start-up India
In order to get recognition under this beneficial scheme, start-ups have to gain approval from the Department of Industrial Policy and Promotion (DIPP). The start-ups are required to fulfill various conditions for getting registered under the Start-up India Stand-up India scheme.
C. Conditions for getting registered as Start-up on Start-up India scheme
A business firm that meets the following criteria shall be termed as “Startup” under the Start-up India Stand-up India scheme:
- Incorporation should not be before the period of 10 years
- Must be incorporated as a Private Limited Company or as a Partnership Firm or an LLP
- The Annual Turnover of a startup must not exceed INR 100 crore for any of the previous financial years since its date of Incorporation.
- The company or Entity should have been formed formerly by the promoters and should not be incorporated by the division of an already existing business
- Innovative concept: The business must have a concrete plan for the development or progress of a product, process or service. It must have a scalable business model with a high prospective for the expansion of wealth & employment generation.
Such a business will be recognized by the Department for Promotion of Industry and Internal Trade (DPIIT). It shall be entitled to avail various benefits from the Indian Government:
D. Documents required for Start-up India certificate
Following are the documents required to be submitted as to get your business registered under the Start-up India government scheme:
I. Letter of support
A letter of suggestion must be submitted alongside the enrolment form. Any of the below will be legitimate:-
- A proposal, with respect to inventive nature of the business, from an Incubator, set up in a post-graduate school in India, in an arrangement determined by the Department of Industrial Policy and Promotion (DIPP); OR
- A letter of help by an incubator, which is financed (in connection to the task) by Government of India as a major aspect of any predetermined plan to advance development; OR
- A letter of support, with respect to the innovative nature of the business, from an Incubator, perceived by the Government of India in DIPP indicated design; OR
- A letter of subsidizing of at the very least 20% in value, by any Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel Network, appropriately enlisted with SEBI that embraces inventive nature of the business; OR
- A letter of financing by Government of India or any State Government as a major aspect of any predefined plan to advance development; OR
- A patent registration recorded and distributed in the Journal by the Indian Patent Office in zones associated with the idea of the business being advanced.
II. Proof of Business Registration
Now you need to transfer the proof of incorporation of your organization or LLP Registration Certificate in case of a Limited Liability Partnership.
Following are needed to be furnished as proof of business existence:-
III. Precise sketch of your business activity
Just a short depiction of the innovative idea of your items or the services on your business activity is required to be given. On that basis, your eligibility for the Start-up India certificate will be judged.
IV. Valid proof of Tax registration
All businesses in India are supposed to possess a GST registration certificate as proof of Tax registration. It is necessary for obtaining recognition under the Start-up India scheme.
E. Entire Procedure to register under Start-up India scheme
With all the required conditions fulfilled, now it is time to get your business registered under the Start-up India scheme. Given below are 4 easy steps to get your business registered under the Start-up India Stand-up India scheme:
#1. Submit the required documents
Firstly, you have to furnish all the necessary documents mentioned above along with the enrolment form on the Start-up India Stand-up India portal.
#2. Opt for the tax exemptions
This is the most important thing to do. Avail all the applicable tax exemptions. Actually, this is the only reason why you need to register under the Start-up India Stand-up India Scheme.
- Generally, the Startups are absolved from tax assessment for a long period, i.e. 10 years.
- Be that as it may, to avail all these benefits, they should be affirmed by the Inter-Ministerial Board (IMB).
#3. Self-assess all the necessary criteria for Start-up registration
Very essentially, you need to assess whether your business fulfills all the required conditions mentioned above for registering as a start-up on the Start-up India scheme.
#4. Obtain the acknowledge receipt
Upon applying for start-up registration, you will receive an acknowledgment receipt number for your Start-up India login. You need to save this acknowledgment receipt number.
It’s done! Your business has now been successfully registered on the Start-up India Stand-up India and is ready to avail benefits from the government.
If you need any assistance regarding the entire process of Start-up India registration, GST registration or company formation please feel free to contact our business advisor at 8881-069-069.
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