Startup India Registration

Startup India Registration is a government initiative aimed at promoting and supporting entrepreneurship in India by providing various benefits to startups. Launched in 2016, the program is designed to simplify the process of setting up a startup and encourage innovation by offering incentives like tax exemptions, access to funding, and simplified compliance procedures. Under the Startup India initiative, a startup can register with the Department for Promotion of Industry and Internal Trade (DPIIT).

What is Startup India Dpiit Recognition?

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Startup India is an initiative designed to foster and support the startup ecosystem in India. It aims to promote new ventures by offering various benefits and exemptions, including tax holidays, access to government funding, and incubation programs. Startups can access these advantages through DPIIT (Department for Promotion of Industry and Internal Trade) recognition.

Benefits of DPIIT Startup India Recognition

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Startups recognized by DPIIT can access a range of benefits under the Startup India Initiative:

1. Self-Certification: Startups can self-certify compliance with 6 labor laws and 3 environmental laws through a simple online process, reducing regulatory burden and compliance costs.
2. Tax Exemption under Section 80-IAC: Private limited companies and LLPs are exempt from paying income tax for three consecutive financial years within their first ten years of incorporation.
3. Easy Winding Up: Startups with straightforward debt structures or meeting certain income criteria can wind up within 90 days under the Insolvency and Bankruptcy Code, 2016.
4. Fast-Tracking Patent Applications: Patent applications by startups are expedited, allowing quicker realization of their intellectual property value.
5. Rebate on Patent Filing: Startups receive an 80% rebate on patent filing costs, reducing the financial burden of protecting innovations during early stages.
6. Easier Public Procurement: DPIIT-recognized startups can register on GeM to sell directly to government entities, and are exempt from Earnest Money Deposit (EMD) and prior experience/turnover criteria in tenders.
7. Exemption under Section 56: Investments by accredited investors, non-residents, AIFs (Category I), and large listed companies are exempt under Section 56(2)(VIIB) of the Income Tax Act, with a limit of ₹25 crores on share consideration.
8. Facilitator Panel for IP Applications: The Central Government covers the fees of facilitators for patent, trademark, and design filings, with startups only bearing statutory fees.
9. GeM Portal Preference: Recognized startups receive preferential treatment on the GeM portal, enhancing their opportunities within the public procurement market

Eligibility for Startup India Registration

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1. Originality:
   • The startup must be a new entity and not a spin-off from an existing company.
2. Type of Business Structure: The business should be registered as one of the following:
   • Private Limited Company
   • One Person Company
   • Partnership Firm
   • Limited Liability Partnership
3. Annual Turnover:
   • The entity must have an annual turnover of less than ₹100 crore as per DPIIT guidelines.
4. Incorporation Period:
   • The startup should be less than 10 years old from the date of incorporation to qualify for DPIIT recognition.
5. Innovation & Scalability:
   • The entity must demonstrate innovation and scalability. DPIIT emphasizes these criteria to foster innovative ventures and job creation.

Documents Required for DPIIT Recognition

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To obtain DPIIT recognition under Startup India, entities need to submit the following documents:

1. Authorization Letter
2. PAN Card of the Company
3. Certificate of Incorporation
4. Aadhaar and PAN Cards of the Directors
5. Passport-size Photographs of the Directors
6. Company Profile Deck or Website (if available)
7. Photos and Videos of Products/Services
8. Brief Description of the Business, including:
   • Innovation in the Industry
   • High Potential for Wealth Creation
   • Potential for Employment Generation
9. Additional Certificates, if applicable:
   • GST Registration
   • Trademark Registration
   • Copyright Registration for Intellectual Property Rights
   • MSME Registration (if available)

Startup India Registration Process

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The Startup India registration process is straightforward and streamlined with professional assistance. Here’s an overview of the steps involved:

1. Details & Documentation: Provide all required details and documentation on the Startup India portal to initiate the registration process.
2. Drafting & Uploading Documents: Once the necessary documents and information are collected, our experts will draft and upload them onto the Startup India portal.
3. Application Submission: After creating the entity profile on the portal, submit the application for DPIIT recognition through the Startup India dashboard.
4. DPIIT Verification: The DPIIT will review the application to determine if the entity meets the criteria for startup recognition.
5. Approval or Rejection: The DPIIT will process the application, typically taking 20-25 days. The application may be approved or rejected based on whether it meets the registration criteria