India has recently seen a big rise in the number of registered startups.
Even though there are many unregistered businesses, it is important to register your startup to get funding and enjoy other legal benefits. Also, banks don’t give loans to startups that aren’t registered.
The good news is that India is close to becoming a startup friendly country, and making it easier for many startups to register through a simpler process.
It’s no longer a time-consuming and heavy paperwork process.
If you are an aspiring entrepreneur looking for information on how to register a startup in India, this guide will definitely help you.
Startup India
Startup India is an initiative by the Indian Government to support and grow the startups in the country. The main goal is to make India one of the most dynamic startup ecosystems in the world. By registering with the Startup India program, startups can benefit from things like tax exemptions, financial help, and access to incubators.
Launched in 2016, the startup India scheme has played a key role in building a strong ecosystem in India, creating job opportunities. The government also takes some important steps to support and uplift startups, fostering an environment where entrepreneurs can thrive. The Department for Industrial Policy and Promotion (DPIIT) is responsible for managing the programs and initiatives of the Startup India Scheme.
What is a Startup?
A startup is a business that creates new or better products or services to address problems or needs in society. It focuses on bringing fresh ideas and creative solutions to the market. Know the Difference between startup and small business.
Steps to Register Your Startup With Startup India
Step 1: Incorporate your Business
First you need to incorporate your business as a Private Limited Company, Partnership firm or a Limited Liability Partnership. You must complete the usual registration steps , including submitting the registration application and getting a Certificate of Incorporation or Partnership registration.
To incorporate a Private Limited Company or a Limited Liability Partnership (LLP) you need to file a registration application with the Registrar of Companies (ROC) in your region. To set up a Partnership Firm, file the registration application with the Registrar of Firms in your area. You need to submit the necessary documents and fees along with your application to the registration application.
Step 2: Register with Startup India
You need to register your business under startup. The entire process is very easy. Go to the Startup India website and click the ‘Register’ to get started .
Step 3: Get DPIIT Recognition
After creating a profile on the Startup India Website, the next step is to get DPIIT Recognition. This recognition allows startups to access benefits such as high-quality intellectual property services and resources, relaxation in public procurement norms, self-certification under labour and environment laws, easier company winding, access to the Fund of Funds, tax exemption for 3 years and tax exemption on investment above fair market value.
Step 4: Recognition Application
On the ‘Startup Recognition Form’, you need to provide details like entity information, office address, authorised representative details, directors or partner details, information about startup activities and self-certification.
Step 5: Documents for Registration
- Registration Certificate of your startup
- Pan card
- Proof of funding, if any
- Authorisation letter from the person who represents the company, LLP or partnership firm.
- Proof of concepts such as a pitch deck,website link or video, especially if your startup is in the validation, early traction or scaling stage.
- Patent details, if you have
- List of any awards or certificates you have received
Step 6: Recognition Number
That’s it! When you apply, you'll receive a recognition number for your startup. The certificate will be issued within the 2 days of submitting the details online.
Step 7: Other Areas
Patents, trademarks and design registration: If you need a patent for your idea or a trademark for your business, you can Use any of the government-listed facilitators. You'll only need to pay the official fees, which means you'll get an 80% reduction on the costs.
Funding : One major challenge for many startups is getting finance. Because they often lack experience, security or existing cash flows, entrepreneurs struggle to attract investors. Additionally, the high-risk of failure in startups can discourage many investors.
Self Certification Under Employment and Labour Laws: Startups can self certify their compliance with labour and environment laws to lower their costs. This Self-certification reduces regulatory burden, letting startups focus on their main business. They can self-certify under 6 labour laws and 3 environmental laws for 3 to 5 years from their incorporation.
Tax Exemption: To receive these benefits, they must be certified by the Inter-Ministerial Board (IMB). Only Startups that were incorporated on or after 1st April 2016 are eligible to apply for this tax exemption.
Conclusion
Registering your startup is one of the important parts of any startup, it helps you ruin your business without any distribution. Apart from this by registering your business you can easily take lots of benefits from the government such as tax exemptions, environmental laws, funding and many other benefits.