Benefits

Registering your startup in India makes your business receptive to the many benefits of startup registration. Some of them include the following points.

Self Certification – The process of conducting inspections shall be made more meaningful and simpler! Startups shall be allowed to self-certify (through the Startup mobile app) with 9 Labour Laws and 3 Environment Laws (refer below). In case of the labour laws, no inspections will be conducted for a period of 3 to 5 years. Startups may be inspected on receipt of credible and verifiable complaint of violation, filed in writing and approved by at least one level senior to the inspecting officer: The Startups may self-certify compliance in respect of the following

Patent Application & IPR Protection – Fast Track & upto 80% rebate in Patent Filing. 50% rebate in Trademarks application.

Income Tax Exemption Notifications – The Inter-Ministerial Board setup by Department of Industrial Policy and Promotion validates Startups for granting tax related benefits. The Board comprises of the following members:

• Joint Secretary, Department for Promotion of Industry and Internal Trade, Convener
• Representative of Department of Biotechnology, Member
• Representative of Department of Science & Technology, Member

The board shall validate startups for the Income Tax Exemption on profits under Section 80-IAC of Income Tax Act:

A DIPP recognized Startup shall be eligible to apply to the Inter-Ministerial Board for full deduction on the profits and gains from business. Provided the following conditions are fulfilled:

• A private limited company or a limited liability partnership;
• Incorporated on or after 1st April 2016 but before 31st March 2023, and
• Start-up is engaged in innovation, development or improvement of products or processes or services or a scalable business model with a high potential of employment generation or wealth creation.

To apply for Income Tax Exemption on investments above fair market value received under Section 56 of Income Tax Act:

A Startup shall be eligible for notification under clause (ii) of the proviso to clause (viib) of sub-section (2) of section 56 of the Act and consequent exemption from the provisions of that clause, if it fulfils the following conditions:

• it has been recognised by DPIIT under para 2(iii)(a) or as per any earlier notification on the subject
• aggregate amount of paid-up share capital and share premium of the startup after issue or proposed issue of share, if any, does not exceed, twenty-five crore rupees

Easier Public Procurement Norms – In India, public procurement (government tenders) can also present useful pilot opportunities for startups that have not yet been able to gain traction in the private sector.

Conversely, opening government tenders up to startups improves the choices available to government bodies since startups are often more agile than corporate vendors and can provide cheaper, more innovative products and services.

Various Government Schemes – All the ongoing government schemes for Startups is available at Startup India dot gov dot in.

Access to more venture capitalists – Because registration of startup in India helps an entrepreneur with several positive aspects including fewer taxes, and easy exit, the venture capitalists aren’t apprehensive about investing in a startup, especially if the business idea is an innovative one.

These benefits when you register with startup India are a sure way to get that initial push you need to grow your business. Furthermore, the perks of registration under startup India that we have explained to you here are just the tip of the ice-berg. There are many other advantages to be had once you obtain the startup certificate registration.

Types of entities that can obtain startup recognition?

Only three types of business entities can register under Startup India scheme. These are following:

1. Company: When we say a company, it can be a Private Limited Company, One Person Company, Producer Company, registered under Indian Companies Act 1956 or Companies Act, 2013.
2. Limited Liability Partnership Firm: A Limited Liability Company or commonly used term LLP incorporated under Indian Limited Liability Partnership Act, can be registered as a Startup.
3. Partnership Firm: Only a registered partnership firm can be recognized under Startup India initiative.

Eligibility criteria for startup registration

Eligibility Criteria for recognition under Startup India Scheme

• The Startup should be incorporated as a private limited company or registered as a partnership firm or a limited liability partnership
• Turnover should be less than INR 100 Crores in any of the previous financial years.
• An entity shall be considered as a startup up to 10 years from the date of its incorporation.
• The Startup should be working towards innovation/ improvement of existing products, services and processes and should have the potential to generate employment/ create wealth. An entity formed by splitting up or reconstruction of an existing business shall not be considered a “Startup”

Eligibility Criteria for applying to Income Tax exemption (80IAC):

• The entity should be a recognized Startup
• Only Private limited or a Limited Liability Partnership is eligible for Tax exemption under Section 80IAC
• The Startup should have been incorporated after 1st April, 2016

Eligibility Criteria for Tax Exemption under Section 56 of the Income Tax Act:

• The entity should be a DPIIT recognized Startup
• Aggregate amount of paid up share capital and share premium of the Startup after the proposed issue of share, if any, does not exceed INR 25 Crore.

Documents required for startup registration in india

List of Documents required:

• Copy of Aadhaar of authorised signatory
• Board Resolution and Authorization letter (Format will be provided by STARTUP SAMPARK)
• Pitch Deck (If not available, then it shall be prepared by STARTUP SAMPARK for extra charges)
• Product details or brochure or pamphlet or brief profile, if available.
• Certificate of Incorporation, MOA, AOA, PAN in case of Companies
• Partnership Deed, Certificate of Incorporation/Registration Certificate, PAN in case of Firms.

List of information required:

• Application No. or Registration No. of Patent, Copyright or Trademark or Design registration
• Website link, if any
• Phone No., Email. Address of all the Directors/Partners
• Email & Phone No. of Company
• Current No. of employees (including founders): No. of Male Employees and No. of Female Employees.

Apart from above mentioned documents and information, you need to answer the following questions:

• Has your startup received any funding? Answer in Yes/No, with your remarks, if YES.
• What is the problem the startup is solving? You have to clearly state about the problem your startup is trying to solve, you have to make sure that every detail you provide should exist within the realm of possibilities.
• How does your startup propose to solve this problem? Provide all the possible solutions your startup has come up with to deal with the issues.
• What is the uniqueness of your solution? What separates your solutions from the rest. Be as unique as possible.
• How does your startup generate revenue? Provide specifications about how your startup is going to generate revenue.

Startup sampark procedure for startup india registration

We, at Legal Samparlk provide end to end solutions to establish your startup in India. Our services include:

• Preparation of Pitch Deck
• Preparation of format for Board Resolution and Authorization Letter
• Preparation of answers to Startup questionnaire
• Preparation of application and submission
• Following up with the Startup department.
• Obtain approval for you.

In case you need to incorporate a Company or LLP, we shall help you with that as well. Please explore our combo plans.

Why STARTUP SAMPARK?

STARTUP SAMPARK is one of the platforms which coordinates to fulfil all your Secretarial, Legal, Licensing and Taxation requirements and connect you to consistent professionals. Our team consist of Chartered Accountants, Company Secretaries, Cost Accountants, Advocates.

We are a management consultancy and technology platform to simplify legal and business related matters. We are committed to help start-ups, small business owners and non-compliant businesses in solving their legal, secretarial and taxation compliance related to setting up and running the business smoothly and compliantly.

Our clients can also track the assignment progress at all times through a dedicated portal provided to you along with User Id and Password. You can comment and find the resolution and ask questions on the dedicated portal provided to you. If you have any questions about the Startup registration process, our experienced representatives are just a call away.

Step 1: Fill the query form.

Step 2: Our Expert will connect with you

Step 3: Make payment through hassle free payment portal

Step 4: Get confirmation on mail and receive User Login and password

Step 5: Submission of documents with us on our client portal

Step 6: Executive will process your application

Step 7: Track progress of your order all the time on our client portal

Step 8: Greetings, Order completed