How Can One Get Registered Under Startup Scheme in India?

The Startup India Scheme is an initiative by the govt. of India aimed toward encouraging the event and innovation of products and services and therefore the creation of employment opportunities across the country. every one of the goals of the scheme has been simplifying the way to register a startup in India by reducing regulatory burdens and allowing them to specialize in their core business while keeping compliance costs low and also providing multiple benefits, except for the large networking opportunities provided by the bi-annual startup festivals held by the govt of India both domestically and internationally.

Benefits of the Startup India Scheme 

Income Tax Benefits 

Startups are now given a revenue enhancement exemption for a period of three years from the date of incorporation provided they’re certified per se by the Inter-Ministerial Board of Certification. Also, upon obtaining recognition from the DPIIT (Department for Promotion of Industry and Internal Trade), and if the mixture amount of paid-up share capital and share premium of the startup after the proposed issuing of shares, if any, doesn’t exceed INR 25 Crore, the startup will be exempt from capital gains tax under Section 56 of the Income-tax Act,1961-2014. 

You Can Also Click Here To Get Your Startup India Registration Today.

Financial Benefits 

Startups are given a rebate on material possession rights (IPR) costs of 80% on patents and 50% on trademarks and are actively assisted by government-provided facilitators who aid with protecting and commercializing the IPRs. The examination and disposal of the IPR applications are fast-tracked. the government also will pay the fees of the facilitators. 

Registration Benefits 

Startup registration in India remains extremely complex, with incorporation and registration being considered tougher than the particular running of a business because of the arduousness of the necessities. Under the scheme, the Startup India Hub, a portal to form networking opportunities and assistance for startups, has been created with a problem-solving window being provided by the government under the scheme. 

Funding Benefits

Certain states provide seed funding to startups certified under the scheme. to grasp your state and also the requirements in situ.

Regulatory Benefits

Under the Startup India Scheme, startups are allowed to self-certify compliance for 6 labour laws and three environmental laws through a straightforward online procedure. For labour laws, no inspections are conducted for a period of 5 years unless there’s a reputable and verifiable complaint of violation, filed in writing, and approved by a political candidate who is a minimum of one level senior to the inspecting officer. within the case of environmental laws, startups that constitute the ‘white category’ (as defined by the Central Pollution Control Board) would be ready to self-certify compliance, and only random checks would be meted out in such cases 

Public Procurement Benefits

Once your startup is certified by the Inter-Ministerial Board of Certification and a DIPP (Department of business Policy and Promotion) number has been issued to you, you’ll be able to get listed as a seller on the govt. of India’s e-procurement portal – Government e-Marketplace and have the within track on all Government of India Ministries/Departments/Public Sector undertakings subject to your ability to satisfy quality and technical requirements. Certified startups will be entitled to exemptions on the earnest deposit in your bid as well as in terms of the wants regarding prior turnover and skill. 

Faster Exit Benefits

The government has initiated provisions making winding down operations easier by appointing an insolvency professional to fast-track the closure of operations and facilitate the sale of products furthermore as paying creditors, all while recognizing indebtedness. Startups with a straightforward debt structure or those meeting the standards outlined under this scheme are going to be ready to achieve an entire exit within 90 days.

The checklist under the Startup India Scheme

An organization are eligible under the scheme if It is incorporated as a non-public company or registered as a partnership firm or a financial obligation partnership in India It has been but ten years from the date of its incorporation/registration It’s turnover for any of the financial years since incorporation/registration has not exceeded INR 100 Crores It should possess a DIPP number It is funded by an incubation fund, angel fund, or private equity fund that’s registered with the Securities and Exchange Board of India (SEBI) It has obtained a patron guarantee from the Indian Patent and Trademark Office It has a recommendation letter from an incubator Capital gain is exempt from revenue enhancement It is working towards the innovation, development, or improvement of products or processes or services, or if it’s a scalable business model with a high potential for employment generation or wealth creation 

The process to Register under the Scheme 

The most important step is to register the corporation in a concert of only three possible sorts of entities: Private company, registered under the Ministry of Corporate Affairs and controlled by the businesses Act, 2013 and therefore the Companies Incorporation Rules, 2014. This kind of structure allows directors to cut loose the shareholders and provides financial obligations for the shareholders with certain restrictions on ownership. to grasp more about registering a non-public company, please click here.. Partnership Firm, registered under the partnership firm act, maybe a structure where the founders are subject to a partnership deed with the conditions outlined and registered with the registrar of firms. Under this structure, the partners have unlimited liability, which implies they’re personally to blame for the debts of the business. However, low costs, easy putting in, and minimal compliance requirements make it the better option for businesses that are unlikely to require any debt. to grasp more about registering a partnership firm, please click here.. Limited Liability Partnership (LLP) registered under the liability Partnership Act, 2008 may be a structure wherein a partnership firm takes on the characteristics of a personal Ltd. in terms of facilities like indebtedness and transferability. The LLP structure was introduced into India