Ultimate Guide For StartUp Registration Process In India

Are you wondering about how to get your startup registration process completed in India? This article will help you to delve deep into the startup registration process in India.

Startups can be registered through various methods in India, one of the most important being under the Startup India Scheme and registration. The process of startup India registration is governed by the Startup India Scheme which was launched on the 16th of January, 2016 as an invitation and incentive to investors with an entrepreneurial spirit, innovators, and entrepreneurs to develop their ideas into reality and get their startup registration process in India completed without much hassle and get recognized by the Government of India.

The aim of the Startup India Scheme was to develop the Indian economy into a thoroughly supportive and holistic startup ecosystem and help with startup registration and ease the startup registration process. The scheme has also aimed to and impacted positively the ease of doing business index in India. Through promoting and enabling the knowledge exchange mechanism, innovation infrastructure and relaxing norms for the business houses planning to register startups in India, the scheme has played a great role in the business ecosystem development in the country.

Startup India Scheme has also facilitated startups to garner international market support and develop connections between international markets and Indian startup companies, paved the way for tax exemptions, and has also created an online platform to facilitate shareholders to develop business connections and develop holistically.

Types Of Companies Under the Companies Act, 2013

There are various types of companies as enumerated under the Companies Act, 2013 which are as follows:

1. One-Person Company – this type of company, as the name suggests, has only one member in the company who may also be fulfilling the tasks of the director of the company. This type of company has been defined under Section 2(62) of the Companies Act, 2013. However, another person may be added to the company as the nominee of the company’s sole existing member. Only a natural Indian Citizen can start an OPC or one-person company and only one OPC can be started per person. The benefit of this type of company is that delays in decision-making can be avoided as only one person takes all the decisions pertaining to the company and a higher degree of autonomy is vested with the director or member.
2. Public Limited Company – A public limited company is a company which has designated its shares in the open market for sale to the general public. A higher level of authority and sanctions are imposed upon such companies and thus it has a greater burden of responsibility.
3. Private Limited Company – According to the Companies Act, 2013 Private Limited Company is a company which does not have any onus to offer shares to different outside members and the holdings of the company remain with a select group of people. The shares may be placed through a private placement of shares and are often not guided by SEBI rules.
4. Cooperatives – Cooperatives are those companies which are regulated by a set of members who act as decision-making authorities of the company. They run the business according to their set of by–laws and thus decision-making is fair and accountable to each other.
5. Unlimited Company – An unlimited company refers to a company which is not limited by the liability of shares or holding of a member into the company. The members can also be held accountable personally for the debts of the company in case the company runs into debts or fails.
6. Partnership Firm – a partnership is a result of individuals who come together to form an agent-principal relationship between them and are governed under the Indian Partnership Act, of 1932.
7. Sole Proprietorship – As the name suggests, a sole proprietorship is a form of business owned by a single person. It is the simplest form of business structure as a single person holds the sole identity and control of the proprietorship.

Procedure For Registering A StartUp In India

There are various steps to be followed for registering a startup in India along with the requisite documentation framework and with help of startup lawyers in India which are as follows:

Step 1: Incorporation of Business – In order to register a startup, the first task revolves around the incorporation of the startup either as a private limited company, partnership firm, or other categories as mentioned above.

Step 2:  Registration with Startup India website – The second step revolves around registering the company with the Startup India website wherein the pertinent details like name, mobile number, stage of a startup website, email address etc., need to be submitted on the portal. After the above step is completed, the startups are eligible for availing benefits of various government schemes, state policies, R&D Programs and other facilities.

Step 3: Getting DPIIT Certified – The third step involves getting DPIIT Certification so that it gets enabled to enjoy the benefits of various relaxations like public procurement norms, high-quality intellectual property services, tax exemption for three consecutive financial years and investment opportunities. The recognition can be obtained using the above website.

Step 4: Applying for recognition – Applying for recognition is necessary where you need to fill in the details in the “Startup Recognition Form” such as authorized office address, details of directors, officials and partners, activities of the concern and self-certification.

Documents Required For Obtaining Recognition

The documents required for obtaining recognition are as follows:

• Entity Details
• PAN Number
• Full Address
• Authorized Representative Details
• Directors / Partners Details
• Incorporation/registration certificate
• List of accomplishments/awards/recommendations
• Authorization letter of representative of the company, Partnership or LLP
• Patents and Trademarks
• Startup Activities
• Self-Certification
• Any other documentation as may be required

After completing all of the above steps, the startup obtains the recognition number within two days of the submission of requisite documents. However, in case there is a discrepancy in documentation, the fine involves 50% of your paid-up capital or Rs. 25,000/-, whichever is higher.

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