Introduction
To help entrepreneurs get a chance to scale and showcase their innovation in India, the Startup India Scheme came into existence. On 16th January 2016 “startup program” got established with the vision to develop a platform for entrepreneurs.
Startup India Initiative focuses mainly on helping entrepreneurs in the best possible ways and creating an ecosystem that scales up the employment opportunities for those in need. A lot of benefits are provided by this program. Let us explore and know how to start a startup company in India.
Basics to Start a Startup
It is important to have knowledge of the basics to start a successful startup to get adequate knowledge about how to start a startup company in India. So, here is what you should know :-
- Understanding the Indian Market
- Doing a Deep Research and Looking for Competition
- Choosing a Right Business Entity
- Going with secure initial funding
Startup India Registration Eligibility
- Existence and operations of the company should not be exceeding 10 years from the date of incorporation
- Business entity must be incorporated as a Private Limited Company, a registered partnership firm or a limited liability partnership.
- Company’s annual turnover must not exceed Rs. 100 crores for any of the financial years since it got into existence.
- The company’s formation must not be set up by splitting up or reconstructing an already existing business.
- The startup willing to be registered under startup India must have an innovative idea that can scale and exist in the highly competitive market.
- A startup must be recognized by DPIIT i.e. Department for Promotion of Industry and Internal Trade.
Why Startup India Registration?
- To avail of Income Tax Exemption under 80IAC
- To enjoy easy winding up of company
- Easier public procurement norms
Startup India Registration Process
Step 1: Incorporation of Business Entity
The primary step is choosing a suitable business entity to lead a successful startup. And to help you in the incorporation of the business, a company registration consultant would be required. From the selection of business to filing the company forms and following the legal compliances, a consultant can guide you with the best practices to make sure everything is under control.
Preferably, a Private Limited Company, Limited Liability Partnership, or Partnership firm are the suggested and desired entities.
Step 2 : Registration under Startup India
Getting registered under startup India is easy and can be done online. It primarily requires creating an account accurately. All of this can be done individually. However, a consultant by your side would be the safest option.
After the creation of an account, startups can apply for any of the offered programs like the Learning and Development Program, mentorship programs etc. This is how you will be able to generate startup India registration login credentials.
Step 3 : DPIIT Recognition for Startup
Once the account is successfully created on the startup India portal, the next step is to be DPIIT Recognized. You must be thinking about why a startup needs to be DPIIT recognized. Well, let me mention it, doing so will help to claim various benefits. Thus, a DPIIT-recognized startup can access to high-quality intellectual property services and resources. Moreover, a startup can get relaxation in public procurement norms. Not to forget, a startup is eligible for self-certification under labour and environment laws.
For getting DPIIT Recognition, visit the startup India website. On the menu bar you will “Recognition”. From the recognition heading, select the second head named as “Apply for DPIIT Recognition”. And fill the “Recognition Application Details” to submit and complete the process.
Step 4 : Documents required for DPIIT Startup Registration
Here is the list of documents required for startup India registration, namely:-
- Incorporation or registration certificate
- Details of directors
- Patent and trademark details (optional)
- PAN number
- Proof of concept of your startup (link/video/pitchdeck)
Step 5 : Get Recognition Number
Here ends the startup India registration process. A recognition number will be generated for your startup after the verification of all the submitted documents. When applying for startup India, be careful while uploading the documents. As there is a fine of 50% of your paid-up capital of the startup with a minimum fine of Rs. 25,000.
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Hope this guide on “How to Start a Startup in India?” was helpful for you.
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