Ever since the Prime Minister of the country, Narendra Modi, launched the Start-up India program, there has been an out-of-this-world surge in the number of startups arising. With tax exemptions, benefits, and help provided by the govt, more and more people are creating a corporation of their own. the foremost fascinating thing is that a majority of the startups calve founders and owners, which speaks volumes about the incredible creative minds that India has. Since they failed to have the backing of the govt. earlier and had to try to do everything on their own, not many of us got into it with all our hearts. 

However, ever since the program started, people are now brave knowing that the govt. will back them within the process and hence are springing up with new ideas. People do have ideas but many of them haven’t any clue about starting an organization or the way to convert that concept into a business venture. People don’t have thought about a way to register their company as a startup. Moreover, some people don’t even know if their company falls into the category of a startup or not. Keeping all such things in mind, we’ve got created a blog post to assist you in this regard by explaining the eligibility criteria to be called a startup and also the procedure to register your company jointly. Before going deep into the dynamics of the eligibility and procedure, allow us to understand what exactly a startup is.

What is a startup?

A startup could be a business managed by the gathering of those that solve a controversy. Such companies acquire formation when the founders find some negatives within the existing system they need been working in and will solve the problems by creating a brand new company of their own. Apart from this, a startup may inherit existence when the founder(s) include a potentially great idea.

The services such startups provide are the services they think currently exist of inferior quality or don’t exist in the slightest degree. The biggest advantage of a startup is that it improves employment within the country because it is the direct result of more and more companies springing up. With the chance of increased job opportunities, the Indian government has tried to assist young companies to grow and thrive within the Indian market. The Startup India initiative helps you to innovate and improve economic sustainable development. Now that you just have a more robust idea about what a startup is and what Startup India talks about, allow us to cross-check what all companies qualify as a Startup in India.

The startup eligibility criteria

What causes you to be a startup under the Startup India program? 

The firm should be a non-public Ld. or an indebtedness partnership The company remains a startup for the primary ten years, post the date of registration. In the recent past, the Indian government changed that to 10 years from 7 years to provide opportunities and tax exemptions for the businesses for an extended run 

The company remains a startup if the turnover annually doesn’t cross the Rs 100 crore mark in any of the ten years. Once the corporate cross the mark, it does not remain eligible to be called a startup. The mark of Rs 100 crore to has been improved by the Indian government in the recent past from Rs 25 crore The firm should be funded by an Incubation Fund, an Angel Fund, or a non-public Equity Fund A patron guarantee from the Indian Patent and Trademark office is critical The firm must come up with innovative ideas and schemes All the main points regarding the funding must be registered with SEBI (Securities and Exchange Board of India) 

Procedure for registering a startup in India 

Step 1: Incorporate your business

First things first, you would like to include your business as a personal Ltd. or a financial obligation Partnership or a Partnership firm. you only must follow the traditional procedure that features you filling up a form to urge the registration. 

Step 2: Register under Startup India 

Now you wish to register your firm or company as a startup within the Startup India scheme of the govt. you only must fill the shape available for you on the Startup India website. you’ve got to fill altogether the main points and upload a particular number of documents in addition.

Step 3: Documents

You would have to upload it in a PDF format only. You need a letter of advice together with the registration form. you’ll get anybody off the subsequent recommendation letters. 

A recommendation letter from an incubator known in an exceeding post-graduate college in India is an exceedingly format approved by the DIPP. this is often regarding the innovative nature of the business, OR A recommendation letter from an incubator that the govt. of India funds as a part of any specified scheme to push innovation; OR A letter from any of the Incubators, recognized by the govt. of India, in DIPP format.

A letter of funding not but 20% in equity, by an Incubation Fund, Private Equity Fund, Angel Fund, Accelerator, Private Equity Fund, registered with SEBI that endorses the innovative nature of business; OR A recommendation later by the Central or any authorities of India; OR A patent filed and published within the Journal of Indian office in areas affiliated with the character of the business being promoted. Registration or Incorporation Certificate You have to upload the incorporation certificate of your company or the registration certificate for a partnership company.