By - Shivam Shekhar on December 16, 2022
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.
There are various types of companies as enumerated under the Companies Act, 2013 which are as follows:
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.
The documents required for obtaining recognition are as follows:
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.
According to Section 80 IAC of the Income Tax Act, 1961, income tax exemption is provided to duly recognized start-ups for any three consecutive financial years out of their first ten years since incorporation.
Any citizen of India aged above 18 years can apply for startup registration in India and avail of the facilities of the Startup India Scheme.