StartUp India Registration

Start Up India Registration

Start-up India was launched by the Hon’ble Prime Minister on 16th January 2016 to nurture the wave of innovation and new businesses in the country. The start-up ecosystem of the country has flourished in the last few years and India has become the 3rd largest start-up ecosystem in the world in terms of number of start-ups.

Entrepreneurship has the potential to disrupt every sector, solve our everyday problems, and enable better public service delivery through innovation adoption in the Government. The New India is spreading its wings as job creators rather than job seekers.

Start-up India offers the following incentives to start-ups:

• Self-certification under Labour & Environment laws
• Relaxation in public procurement norms
• Income Tax exemption for 3 out of 10 years under Section 80 IAC
• INR 10,000 Crore Fund of Funds for Start-ups (FFS)
• Facilitation and fee rebates for IPR filing
• Capacity Development Program for Women Entrepreneurs

Along with these benefits, the Start-up India Action Plan also appointed a team, Start-up India Hub, to act as the facilitator for the entire start-up ecosystem, enable knowledge exchange among various stakeholders, and enable a Start-up Revolution at a national level. The team is hosted under Invest India, the national Investment Promotion and Facilitation Agency of the Government of India.

The portal offers an array of free resources to businesses,

• Free learning and development material
• Business tools and templates
• Pro-bono services from legal, financial, and IT partners
• Repository of Central and State Government schemes
• Innovation challenges by corporates and Ministries
• Incubators, Accelerators, and Mentors to handhold start-ups
• Angel Investors and Venture Capitalists

The States’ Start-up Ranking Framework was conceived by the Government of India in 2018 under the dynamic leadership of Hon’ble Prime Minister Shri Narendra Modi. With its focus on India’s vision of cooperative federalism, the initiative works towards strengthening the support of States and UTs to holistically build the Indian Start-up Ecosystem. The third edition of the exercise was launched in 2020 and has now been completed with the active participation of 31 States and Union Territories

After the successful completion of a rigorous evaluation process, Shri Piyush Goyal, Hon’ble Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles announced the results of 3rd edition of the States’ Start-up Ranking 2021 on 4th July 2022 at an event held at The Ashok, New Delhi.

Evolution Across the Years

The States’ Start-up Ranking Framework is an ever-evolving tool with collaboration at its core. With learnings from previous years and consultation with States and Union Territories, three new Reform Areas were introduced to the framework:

1. Capacity Building of Enablers – This Reform Area focuses on holistic development through sensitization programs and trainings conducted for key stakeholders of the State start-up ecosystem.
2. Mentorship Support – This Reform Area focuses on creating a large and accessible mentorship network within the State and the guidance provided by the State-supported mentors to the start-ups.
3. Fostering Innovation and Entrepreneurship – This Reform Area captures grassroots innovation, disruptive policies for start-ups, and the entrepreneurial spirit of the students.

States’ Start-up Ranking 2021 Results

The results of the third exercise are a testament to the painstaking efforts taken by States to enable their start-up ecosystems. Currently, most States and UTs have functioning State Start-up portals with information available in local languages. Furthermore, several targeted policies and schemes have been introduced with a focus on disruptive technology, women entrepreneurs, and grassroots innovators to drive inclusive growth in the ecosystem. Additionally, State supported incubators, mentorship networks, and funding opportunities along have also expanded across the country. We are making significant progress towards realizing our Prime Minister’s vision of start-ups being the backbone of the Indian economy.

States’ Start-up Ranking 2021

State/UT Reports can be accessed by clicking on respective maps

State Specific Reports for each of the 31 participating entities have been prepared and include a comprehensive analysis of the respective ecosystem and an overview of the strengths and priority areas for the future.

National Report

This National Report presents the overall structure including framework and methodology, evaluation process, and results of the entire exercise. The report starts with a summary of the start-up ecosystem of the country and the impact of COVID 19 on it. It then dives deeper into the conceptualization of the framework and traces its evolution across the years; and subsequently the evaluation and implementation process including intensive capacity development of the states. Finally, the report highlights the results of the ranking exercise, followed by the nationwide impact created through the exercise across all seven reform areas

Compendium of Best Practices

Compendium of Best Practices outlines initiatives adopted by various States in the following 7 Reform Areas

• Institutional Support
• Fostering Entrepreneurship and Innovation
• Access to Market
• Incubation Support
• Funding Support
• Mentorship Support
• Capacity Development of Enablers

The compendium contains more than 30 best practices, which may be directly used by States to identify and implement newer initiatives.

Start-up India Recognition DPIIT-Recognised Start-ups Are Eligible For The Following Benefits:

DPIIT-Recognised Start-ups May Apply to Inter-Ministerial Board (IMB) For The Following Benefits:

1. Intellectual Property Rights (IPR) Section 80-IAC:
2. Income Tax exemption for 3 out of 10 years Faster exit for Start-ups Relaxation in Public procurements norms Section 54GB:
3. Capital gain on transfer of residential property Start-up India Seed Fund Scheme (SISFS) Self-certification under Labour & Environment laws Section 79:
4. Carry forward and set off of losses Section(56)(2)(viib) Fund of Funds for Start-ups (FFS) Sections 156, 191 and 192: Deferment of tax liability on ESOPs

Start-up India (DPIIT) Recognition

• Access to ₹ 10,000 Crore Funds of Fund!

• Fastrack and up-to 80% rebate in IPR Costs

• Use of Make-in-India Logo / Start-up India Logo

• Angel Tax Exemption (Potential Saving of up-to ₹ 1 Lakh!)

• Ease of Eligibility for Government Contracts

• Access to Start-up India Hub – A one stop Start-up ecosystem

100% Money Back Guaranteed!

Documents required for Start-up India Registration

• Director’s Complete Profile Verification Details.
• PAN Card Number
• Written Proof related to your official website, link, or pitch deck. Needed for validation, speaking, early traction, or a staged start-up.
• Start-up’s incorporation or Registration Certificate.
• Details about patent and trademark.
• Trademark
• Articles of Association/Incorporation
• A Non-Disclosure Agreement (NDA)
• Employee Contracts and Offer Letters
• Shareholder’s Agreement
• Bylaws
• Intellectual Property Assignment Agreements
• Founder Agreement
• Business Plan/Pitch Deck

Benefits of Start-up India Registration

Start-up India Initiative comes up with various benefits to motivate budding entrepreneurs. It will also promote the entrepreneurial culture more common in India.

The company needs to meet the following eligibility criteria to avail all the benefits stated under the Start–up India initiative.

• The company’s overall age can be five years or less or completely new.
• Approval by the DIPP – Department of Industrial Policy and Promotion is mandatory for the company.
• All the services, products, and other related schemes of the company are creative and customer-centric.
• The incorporated companies from the existing businesses aren’t eligible.
• Being a private limited company is one of the prerequisites to meet the Start-up India Eligibility.
• You won’t be eligible to avail the start-up India scheme benefits if your company’s total turnover exceeds INR 25 crores.
• Having a recommendation letter from an incubator is a necessity.

Procedure for Start-up Registration in India

Start–ups must follow the beneath steps for a smooth registration process.

1. Incorporate your Business

The first step involves incorporating your start-up as a Partnership firm, a Private Limited Company, or a Limited Liability Partnership. Then, strictly follow the registration regulations, including Incorporation certificate/PAN Number Verification/Partnership registration, etc.

2. Start-up Registration India

The second step involves visiting Start-up India’s official website and registering for Start-up India. Fill the simple form, upload documents to complete the registration process. You will be asked to share an OTP and verify your email to complete the process.

You now get eligible to apply for the following-

• Learning and Development Program
• Incubator/mentorship programmes
• Government Schemes
• Website Challenges
• Pro-bono Services
• State Policies for Start-ups

3. GST Registration

GST Registration is required on all goods and services except Petroleum products. Goods & Service Tax (GST) is a combined tax, meaning that State and Central Indirect taxes have been merged. As a result, the entire country now operates under a uniform tax system. It replaced service tax, excise, VAT, entertainment tax, luxury tax, octroi, CST etc.

4. DPIIT Recognition

Start-ups need recognition from the DPIIT – Department for Promotion of Industry and Internal Trade. This step is done once you have completed the entire identity creation process on the website of Start-up India. To get the recognition from DPIIT, you need to hit the ‘Dashboard’ button and further hit the ‘DPIIT Recognition’ option if you have an existing profile.

Benefits provided by DPIIT are-

• Three years Tax Exemption
• Premium level Intellectual Property Services
• Effortless Company Winding
• Self-certification in Environment & Labor Laws
• Funds Access
• Investing higher than the Market Value can lead to Tax Exemption.
• Public Procurement Norms Relief

5. Application of Recognition

You can see the ‘Recognition Application Detail’ now. On this particular page, you need the ‘View Details’ section. You can find this part just beneath the ‘Registration Details’ category. Now, look for the ‘Start-up Recognition Form’ and fill it in carefully. Once you fill the form, verify it once and hit the ‘Submit’ button to proceed further.

 

1. Cost Reduction

The overall cost meant for the patents has been reduced by 80%. Entire facilitators will be bare by the government of India as per one of the statements provided by them. Only the remaining statutory fees are expected to be handled by the start-ups. The government itself provides a fearful list detailing the patent’s facilitator & trademarks. Cut down on cost is estimated for providing the services under the ‘Intellectual Property Right.’ It includes a quick patent examination at a minimum price.

2. Applying to Tender Facility

Startups of India are given the Oroville to apply for the government tenders with ease. The most satisfying part is that these startups are withdrawn from the extensive monotonous criteria where turnover or prior experience is asked.

3. Tax Exemption Facility

Startups availing of the Startup India scheme are expected to get exempted from the tax slab for three years fixed. To get exempted from tax, these startups must provide the IMB – Inter-Ministerial Board certification.

4. Increased Networking Options

The networking opportunity is seen ahead for the startups under the Startup India Scheme. The government has decided to conduct two events at least on an annual basis. These two events will be held in India as well as internationally. The budding entrepreneurs of various startups can come in front, meet up, and discuss several things that might get some good help via this medium. It will lead to massive networking in a single-day event.

5. Choosing of Investor

You, as a startup, will be given the exclusive right to choose your investor based on multiple parameters. Thus, you can easily choose between several VCs. This liberty shall make you happier about staying in your new business.

6. Investor’s Tax Saving Facility

Investors investing in the venture funds established by the government are provided with a tax-saving facility. Therefore, it is time to fit the core reasons to attract more and more investors to your existing businesses. Ideally, attracting more investors means good funding to start with all the resources required for your startup business.

7. Simple Exit Process

One of the central troubles startups face today is following the complicated pathways to exit from the business. However, with the help of a Startup India Scheme, you no longer have to worry about it. You can apply for a winding process if you plan to wind up due to several untold reasons. From the starting date of this application, you will have 90 days to wind up everything.

8. Straight Registration Process

To make the scheme reach lakhs of people, the procedure of registration is simple. Emerging Startups can register for the Startup India Initiative with the help of a mobile application or on their official website. You will be asked to fill the form and upload your documents online for verification.

9. Enhanced Research and Development Centres

The total number of  R&D Centers is going to increase by a massive number. Estimation of settling up the new research parks is at least seven in number. Such R & D centres are expected to prove highly beneficial. It will provide many facilities to the budding entrepreneurs for their startups in the R & D segment.

10. Direct Fund Access

The Government of India has declared an overallVenture Capital budget of INR 10,000 crore/- to help the startups of India. Lenders are assured that banks and other financial institutions will come in front to support venture capital.

11. Time-Saving Compliances

Compliances meant for the startups have been facilitated and eased by a significant perspective. The overall intention of doing it is to save your time, registration process, and money. With the help of three environment labour nine labour laws, Startups are given the authority to self certify compliance. It will require the mobile startup application for the same.

12. Govt. Funding Opportunity

The government sets up a 10,000 crore rupees fund to provide funds to the startups as venture capital. The government is also giving assurance to the lenders to encourage banks and other financial institutions for providing venture capital.

13. Various Govt. Scheme

The Startup India Scheme is an initiative started by the Government of India in 2016. The primary objective of Startup India is the promotion of startups, generation of employment, and wealth creation. Startup India has initiated several programs to build a strong startup ecosystem and transform India into a job creator country instead of job seekers. The Department manages these programs for Industrial Policy and Promotion (DPIIT).

Some of the schemes started by Startup India-

• Venture Capital Scheme
• Stand Up India
• Single Point Registration Scheme (SPRS)
• Small Business Innovation Research Initiative (SBIRI)
• Dairy Entrepreneurship Development Scheme
• Pradhan Mantri Mudra Yojana
• NewGen Innovation and Entrepreneurship Development Centre
• Agro Processing Cluster Scheme
• Procurement and Marketing Support Scheme
• Raw Material Assistance Scheme