How to Register and Kickstart Your Entrepreneurial Journey with Startup India Scheme
Entrepreneurship is a challenging yet rewarding journey, and government initiatives can provide valuable support to aspiring entrepreneurs. The Startup India Scheme, launched by the Government of India, aims to foster a vibrant startup ecosystem by providing various benefits and incentives. This comprehensive guide will walk you through the process of registering your startup under the Startup India Scheme, including eligibility criteria, registration procedures, and the numerous benefits available to registered startups.
Understanding the Startup India Scheme
The Startup India Scheme is an initiative by the Government of India to promote and nurture startups in the country. It offers a host of benefits, including financial support, tax exemptions, and simplified compliance procedures. To qualify for these benefits, startups must meet specific eligibility criteria set by the Department for Promotion of Industry and Internal Trade (DPIIT).
Eligibility Criteria for Startups
To register under the Startup India Scheme, your venture must meet the following criteria:
a. Age Limit: The startup should be incorporated as a private limited company, a partnership firm, or a limited liability partnership (LLP). It should not be older than ten years from the date of incorporation.
b. Turnover Limit: The annual turnover of the startup should not exceed INR 100 crores in any of the previous financial years.
c. Innovation and Scalability: The business should be working towards innovation, development, or improvement of products, processes, or services with a scalable business model.
The registration process under the Startup India Scheme involves the following steps:
a. Prepare Documentation: Gather the necessary documents, including the Certificate of Incorporation/Partnership Deed/Registration Certificate, Memorandum of Association/Articles of Association, and a brief write-up about the nature of your business.
b. Visit the Startup India Portal: Create an account on the Startup India portal (www.startupindia.gov.in) and fill in the required details, including business information, directors/partners details, and supporting documents.
c. Self-Certification: Declare that your startup meets the eligibility criteria and complies with the definition of a startup as per the Startup India Scheme.
d. Recognition Number: Once the application is submitted, you will receive a recognition number, which can be used to avail the benefits and incentives under the scheme.
Benefits and Incentives for Registered Startups
Registering your startup under the Startup India Scheme opens up access to a range of benefits, including:
a. Tax Exemptions: Startups can avail themselves of various tax benefits, including a three-year income tax exemption, exemption from capital gains tax on the sale of specified assets, and exemption from the “Angel Tax” for eligible startups.
b. Self-Certification and Compliance: Startups are allowed to self-certify their compliance with several labor and environmental laws for a period of five years from the date of incorporation.
c. Intellectual Property Support: Registered startups can avail themselves of fast-track examination and a reduced fee for patent and trademark filings through the Indian Patent and Trademark Offices.
d. Funding Support: Startups are eligible to apply for various government schemes and funds, such as the Fund of Funds for Startups (FFS), which provides financial support through alternate investment funds.
e. Networking and Collaboration: The Startup India platform facilitates networking and collaboration opportunities with other startups, investors, and industry experts through events, seminars, and startup showcases.
The Startup India Scheme offers a plethora of benefits and incentives to registered startups, making it an attractive option for entrepreneurs in India. By following the registration process and meeting the eligibility criteria, you can avail yourself of tax exemptions,