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Steps to Register startup under Startup India

Published On: Nov. 28, 2017 By:
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Steps to register startup under Startup India

The concept of Start up

A recently recognized business introduced by an individual or unit of individuals is referred as a start up business. Startup companies are well known for providing new products or services which are unique in nature. Prime Minister of India Narendra Modi, initiated the growth of Startup India Movement. It was introduced on January 16, last year and was promoted as a scheme to support young entrepreneurs by creating a procedure to get funding easily. This would further enable them to build their business by getting proper back up from the government. Moreover, a start-up business sometimes invests in enhancing an already developed product and/or service. The following entities are eligible to register as a startup : Furthermore, a company continues to exist as a startup for the subsequent five years beginning from the period of incorporation. As long as a start-up venture concentrates on originality, improvement, consumption, and marketing of new commodities, it will be perceived legally as a start-up company. Besides, its methods of innovation must adapt to technological advancement. Finally, in the past five years, its turnover should not be beyond 25 Crores. However, the unit should be a unique venture and not a part of a business which is already in the continuation and well established.

  1. Under The Companies Act, 2013, a Private Limited Company is eligible.
  2. Under The Indian Partnership Act, 1932, a Registered Partnership Firm is eligible.
  3. Under The Limited Liability Partnership Act, 2008, a Limited Liability Partnership is eligible.

Steps to register under Start up India

In order to successfully complete registration of start-ups with Startup India, the following steps should be followed-

Ø Firstly, it is mandatory to incorporate a business either as a Partnership firm, Limited Liability Partnership, or a Private Limited Company. However, in case of a Sole Proprietorship firm, the company won’t be qualified for registration as per the Startup India Format. In short, the startup should be incorporated to qualify for registration.

  • -On successful completion of incorporation of business, the applicant is required to log on to the Startup India website. Thereafter, and requisite details of the business have to be filed along with the authentic documents. Similarly, the self-certifications pertinent to the start up business need to be uploaded. Since the complete procedure is conducted online, registration is easily done.

Ø Please note that the uploaded documents such as the validating credentials and Self-Certifications are filed as mentioned in the form. Moreover, the documents uploaded should be in PDF format only and the size of the file by no means should be beyond 2 MB.

Ø The documents that are necessary as per the Start up India Scheme are as follows:

  1. The first and foremost task is to submit along with the registration form. The letter of recommendation must guarantee that the start-up business is innovative in nature. The letter needs to be from an Incubator recognized in an Indian post-graduate college. The letter must be created in the format as mentioned by the Department of Industrial Policy and Promotion or DIPP.
  2. A letter of recommendation for a business innovation can be acquired in DIPP specified format from an Incubator acknowledged by the Indian Government of India. Moreover, the Government of India funded incubator can provide recommendation which is financed in order to promote innovation in the nation.
  • -A letter of funding by a SEBI registered Private Equity Fund or Angel Network and more can also be acquired.
  1. A letter of financial support by Indian Government or any State Government can also be requested. A patent is required to be filed by the Indian Patent Office and published in the Journal of theirs. This shall be published in areas associated with the business. A document providing a succinct description of the business venture and how it is innovative in nature is necessary.
  2. Moreover, along with the registration form, the incorporation certificate of the business needs to be uploaded during the Startup Indian registration process.
  3. Startup companies are excused for three years from income tax. However, such companies must be licensed by the Inter-Ministerial Board. Startups acknowledged by the Government of India, DIPP is eligible to claim IPR related benefits even in the absence of further documentation from the IMB.
  4. One of the crucial steps to registration is to self-certify whether-
  5. The startup applying for registration has not been incorporated in India prior to 5 years.
  6. Next, if the Startup is registered as the entities mentioned as per the Start up India Scheme, i.e., Private Limited Company, Partnership firm or a Limited Liability Partnership.
  7. The annual turnover of the Startup’s should be less than Rs 25 Crore.
  8. The methods of innovation of a Startup must adapt to technological advancement.
  9. The unit should be a unique venture and not a part of a business which is already in the continuation and well established.
  10. One successful application, a recognition number will be provided instantly. This recognition number is only provided after scrutinizing the documents properly. Whereas, if while authentication of documents, it is discovered that the requisite documents uploaded are an incorrect document or fictitious document, then the applicant is accountable to pay a fine of fifty percent of the paid up investment of the startup.
  11. In order to obtain patents, trademarks and design registration for a business, the government issued a list of facilitators. One can approach those facilitators and pay just the statutory fees as well get an 80% cutback in fees.
  12. Funding is one of the integral parts of start up businesses. It is essential for a business to get proper financial support to be successful. Funding is one of the major hurdles faced by the startup Investors lack the confidence to put their money in start-up companies due to high risk and lack of experience. However, the Government established a funding system where a preliminary amount of Rs 2,500 Crore and an absolute amount of Rs 10,000 Crore will be provided to companies for 4 years.

In conclusion, it is essential for all budding companies to follow “steps to register start-ups under start up India”. With the initiative taken by the government, it is now possible to register for startups with no inconvenience.

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