In India, it is an excellent time for entrepreneurs. India’s startup scene is flourishing, and it will continue to do so. However, starting a business without sufficient preparation is difficult. The reason for this is that launching a business necessitates a list of registrations and licences. Moreover, Startups profit from these registrations and licences significantly.
Therefore, in this article, we will read about the major List of Registrations and Licenses required for Startups.
What are Startups?
A startup is a business that is still in its early stages of development. A startup is a new business that is just getting started.
Startups are often tiny, with only a few founders or one person financing and operating them at first. In other words, these are Micro, Small, Medium Enterprise.
These businesses provide a product or service that isn’t already available on the market, or that the owners think is being provided in a subpar manner. Let’s look at the Registrations and Licenses required for startups.
List of Registrations and Licenses required for Startup
Company Formation – Top Most Registration Requirement
The first step in starting a new business or a startup is to have the company registered. In India, there are different types of company structures. The following are the many types of business structures seen in India:
- Private Limited Company
- Public Limited Company
- One Person Company
- Partnership Firm
- Limited Liability Partnership
- Sole Proprietorship
Startups have to choose the best company type as per their the size of its activities, cash invested, number of members, and risk connected with the firm. Each business structure has its own set of characteristics, advantages, and disadvantages. Hence, an entrepreneur should seek advice from a business advisor to determine which structure would be best for their business model.
Know about Startup India Registration
The Government of India, under the supervision of the Ministry of Commerce and Industry, launched the Startup India Registration. Stand-up India programme is a program to elevate and expand Indian start-ups in order to strengthen the Indian economy and stimulate entrepreneurship. Therefore, Startups should get it’s registration. It provides several benefits such as –
- Tax Exemption
- Angel Tax Exemption
- Funding Opportunities and Trademark, Patent, IPR related exemption
- Easier Norms on GeM Portal
MSME Registration in List of Registrations and Licenses benefits each startup
MSME stands for Micro, Small, and Medium Enterprises, and it helps businesses grow and prosper by providing different advantages and programmes. Udhyam Registration or MSME is necessary if one wants to get advantages from the federal or state governments, as well as the banking sector.
As we all know, investment for startups is quite necessary; consequently, entrepreneurs may gain financially too from MSME Registration along with other benefits.
GST Registration – Important in List of Registrations and Licenses for emerging unicorns
At present, GST (Goods and Service Tax) is the taxation system. It is indirect tax and is mandatory for manufacturers, sellers, service providers, exporters, etc. GST Registration must be obtained within 30 days of the company’s establishment, otherwise the company may face severe penalties.
GST registration is required for all types of new businesses in the following situations:
When a company’s total revenue exceeds INR 20 lakhs, or INR 10 lakhs in Special Category states.
- If the company only sells items within the state.
- When a company sells products or delivers services through the internet.
- When the company was registered for taxes under the previous tax regime.
Trademark Registration
The significance of Trademark Registration is a notion that every company should consider. Protecting your trademark is more important than ever in the digital era. Furthermore, failing to register a trademark might severely harm your firm as you will have no legal rights to safeguard its brand value if it is exploited.
Registrations and Licenses required for Startup
FSSAI License Registration Mandatory for Startup Business
The Food Safety and Standards Authority of India is abbreviated as FSSAI. If you operate in the food sector, you must have an FSSAI Registration or a food licence, regardless of whether you are producing, refining, packing, transporting, or storing.
Any startup working in the Food Sector has to get FSSAI License to avail it’s several benefits. It includes government grants and loans that are readily available to organisations.
ISO Certification Mandatory for Startup Business
The International Organisation for Standardisation(ISO) is an independent and non-governmental body. It aims to make International Standards. These International Standards help startups in several aspects such as quality management, safety at work plus legal compliance. Whichever Industry you are in, these ISO Certification can significantly boost the productivity of your startup.
Know FIEO Registration
FIEO Registration enables exporters to get useful guidance and international exposure from Federation of Indian Export Organisations. It acts as a representative for all the Indian entrepreneurs who are involved in the export-import market.
Know about APEDA Registration
It is mandatory to get APEDA Registration in India for carrying out the export of agricultural products. The Food Export Development Authority of Agricultural and Processed Products (APEDA) was established in 1985 by the Indian government to promote and expand scheduled exports of commodities.
The statutory body is mainly responsible for encouraging the export of scheduled items from India, among other things. If an individual or company wants to begin an export business, he or she has to get an APEDA Registration.
In Conclusion, The above list of registrations and Licenses is majorly mandatory for startups. These registrations and licenses can be applied online, However it is best to have consultancy from a reputable CA Firm so you can make a better decision as an entrepreneur for everyone.
Moreover, if you need any further guidance as regards the Startup India Certificate, please feel free to communicate with our business advisors at 8881-069-069.
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