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Startup India is an initiative by the government of India to build an ecosystem for fostering innovation and startups in the country. The startup India scheme was announced in 2016. The main goal of startup India is to develop and innovate the product and services with increments in the employment rate. If you have a startup and want to acquire tax benefits and easier compliance then your business needs to be recognized as startups by the Department for Promotion of Industry and Internal Trade (DPIIT) under the startup India initiative. Through this article, you will get to know DPIIT registration and how to start a startup in India.

What is startup India Scheme?

Start up India scheme is an initiative of the Government of India aimed at generating the community of startups and producing a healthy and inclusive ecosystem for innovation and entrepreneurship in India. The startup India launch date is 16 January 2016.

Startup India scheme was announced with an aim at empowering entrepreneurs and converting India into a nation of job-producer instead of job-seeker. 

Eligibility for Startup India- Conditions required to be fulfilled.

There are some startup India scheme eligibility criteria that need to be fulfilling for availing of the DPIIT Certificate of Recognition:

The Span of the existence of Entity

The span of existence and the functioning of a company should not exceed 10 years from the date of emergence.

The turnover of Entity

For getting DPIIT registration, the firm’s yearly turnover should not surpass Rs. 100 crores in any financial year.

Type of Establishment

The DPIIT Certificate of Recognition is provided if your company is incorporated either as a private limited company or a registered partnership firm or a limited liability partnership.

Untouched Entity

The entity must be untouched which means for availing DPIIT Certificate of Recognition your company should not have been incorporated by splitting up or recreating an already existing entity.

Innovatory & Upgradable Entity

The entity should have innovative business, development, or improvement of products, processes, or services, and it should be generating employment and also creating wealth for the economy.

Documents Required

The required documents for DPIIT Certificate of Recognition for startup India policy are listed as follows:

1. Name of the company.
2. PAN of the company.
3. Full address of the company.
4. Name and details of authorized representative.
5. The entity needs to have a Certificate of Incorporation or Registration of entity.
6. If there is any funding received by the startup, the proof of such funding needs to furnish for the DPIIT Certificate of Recognition for Startups.
7. Any documents of awards or recognition received by the entity.
8. Documents of the patent published by the entity.
9. A concise description of the nature of business. It should contain the following details:
   1. Detail regarding, how the startup is working towards innovation
   2. Evolution of products or processes or services.
   3. Expandability in terms of employment generation or wealth creation.

Proof of documents of Funds.

1. The support letter from the authorities of either the Central Government or State Government authorities or any incubator which is duly recognized by the government can be submitted.
2. The document for funding should not be less than 20% in equity by angel funds or incubation funds.

Penalty for Forged Documents

 

If it is found that the uploaded documents are forged then the applicant is liable to pay a penalty of 50% of the paid-up share capital of the startup with an amount of Rs. 25000.

Applicable Fee - 4999/-

Tax advisory offering you a hassle-free service to register your business as a startup under the startup India initiative at just Rs. 4999/-.

 

Startup India benefits-Benefits for DPIIT recognition.

The startups in India can avail of the following benefits after obtaining the DPIIT Certificate of Recognition for Startups:

Self Certification

After acquiring the DPIIT registration for startup in India scheme, the entity shall be allowed to be self certify adherence for 6 Labour Laws and 3 environmental Laws through a simple online procedure.

Startup Patent Application & IPR Application

1. By DPIIT Registration, the startup shall be provided an 80% rebate in the filing of patents vis-à-vis other companies.
2. Also, the central government shall bear the entire fees of the facilitators for any number of patents, trademarks, or designs that a startup may file and they will bear only the statutory cost.

Note: - Facilitator will be responsible for providing general advisory on different intellectually property as well as guidance on protecting and promoting intellectual property.

Tax exemptions

1. If your startup is DPIIT registered then the eligible startups can be exempted from paying Income tax for 3 consecutive financial years out of their first 10 years under section 80IAC of the Income Tax Act.
2. If listed companies with a net worth Rs. 100 crores or turnover more than Rs. 250 crores made an investment into eligible startups shall be exempt under section 56(2) (VIIB) of the Income Tax Act.
3. Consideration of shares collected by eligible shares shall be exempt up to an aggregate limit of INR 25 crore.

Easier Public Procurement Norms

1. The DPIIT recognized startups may have an opportunity to list their product on Government E-marketplace.
2. The DPIIT recognized startups can register GeM (Government e-Marketplace) as sellers and sell their products and services directly to government entities.
3. DPIIT registered startups have been exempted from submitting Earnest Money Deposit (EMD) or bid security while filing government tenders.

How to Register a Startup in India- DPIIT Registration process.

How to start business in India-

Step 1

For Indian startups, you need to access the Start-up-India Recognition Portal to register with Start-up India to get the DPIIT Certificate of Recognition for Startups.

Step 2

Now you need to provide entity details such as Nature of Entity, Industry, Sector, Categories and Company Incorporation Number (CIN), Name of Entity, Registration Date, and PAN details.

Step 3

After saving the above details, you need to add the full address of the Entity and click on the Save button.

Step 4

Now you need to give details of Authorized Representative.

Step 5

In the 5^th step, you need to add details of Directors or Partners such as; DIN/DPIN, name of Director/Partner, mobile number, Email Id, etc.

Step 6

In this step, you need to provide details of Intellectual Property rights, Proof of Funding, Development of product, process, and service, etc.

Step 7

Provide information, if, any reward recognition is received by the entity and details about startup activities.

Step 8

After uploading all the documents, the DPIIT Certificate of Recognition for Startups will be issued after examination of the application and required documents.

After approval of the application from the ministry, they will provide a unique startup recognition number. And your startup can be registered with startup India tax benefits.

If you have a Startup and want to avail the benefits of the DPIIT Certificate of Recognition, you need to contact us and submit your required documents AND get wings to your startup.    

Why choose Tax Advisory?

If you are thinking to get DPIIT Registered then you have to give a chance to Tax Advisory. It is one of the best India’s leading legal service providers. The experts of Tax advisory will guide you and help you in getting your startup DPIIT registered. You just need to visit our official website www.taxadvisory.in and contact us directly on 9193555055.

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