How To Register a Startup in India: A Complete Guide

Startups are booming in India. Today we are seeing that many youths are showing their interest in setting up new startups and entrepreneurship. Even the government is supporting them with lucrative schemes.

The Indian government empowers new startup founders by providing platforms to drive economic growth and achieve their dreams. It gives access to resources and guidance for achieving business goals.

This present article provides a detailed overview of the startup India registration process. Many business professionals don't have an understanding of its entire procedure. If you are one of them, this guide will help you to know everything about this registration and will make your registration process efficient.

What is Startup India Registration?

Startup India Registration is a government initiative that aims to promote and support new businesses. This registration provides many benefits to startups and helps in achieving sustainable growth.

Today, startup India registration has become an essential step for new businesses. You can also apply for it if your business meets the eligibility criteria of this registration process. This is an online process in which you need to submit your necessary documents for efficient registration. You can turn to the best business services provider. That will help you to make your registration process fast and secure. You will also be able to focus more on the core operations of your business rather than dealing with complex regulatory requirements.

Eligibility Criteria for Startup India Registration

There are specific criteria that your entity must meet. It makes you eligible for registration with Startup India. Here is a detailed breakdown of the eligibility requirements for the Startup India Scheme:

• Age of the Applicant

Applicants must be Indian citizens 18 years of age or above.

• Age of the Firm

The company's incorporation date must be at most ten years.

• Type of Company

The company should be incorporated as a Partnership Firm, Private Limited Company, or Limited Liability Partnership (LLP).

• Annual Turnover

The company's total turnover should be at most Rs. 100 crore in any financial year since incorporation.

• Original Entity

The startup must be newly founded by its creators, not split from or reorganized from an existing business.

• Innovative & Scalable

The startup should have a good plan for developing or improving a product, process, or service. It should have a business model with a high potential for creating wealth and employment.

Conditions for Availing Benefits Under the Startup India Policy

• Your startup must be working on developing, deploying, or commercializing a product or service that follows the latest technology or intellectual property.
• Your startup should have an objective to improve existing products or create a new one to provide better services to customers.

Registration and Approval Process

Startups must obtain approval from the Department for Promotion of Industry and Internal Trade (DPIIT) based on the following criteria:

• Referral from an incubator connected to a post-secondary education institution.
• Recommendation from a central government-approved incubator.
• Submitting and publishing a patent that is pertinent to the particular product or service sector in the Indian Patent Office Journals.
• SEBI registration for businesses offering equity and finance services.
• A grant letter from an innovation-promoting state or federal government program.

Special Considerations for Partnership Startups

• In partnership startups, women or members of Scheduled Caste and Scheduled Tribe should possess 51 % of the shares.
• They also ought not to have missed any credit payments.

Benefits of Startup India Registration

Startup India registration from the best startup registration company gives you many critical benefits. The registration helps businesses in their growth. And offers additional government benefits. These are the 5 key benefits of Startup India registration in India:

Self-Certification

A startup India-registered business can self-certify its business and declare its compliance with 6 labor laws and 3 environmental laws on its own. It is possible to go through the simple online process without having to deal with extensive documentation or inspections from authorities.

Tax Exemption   

Recognized startups can take tax benefits under the Startup India scheme. They can enjoy an income tax exemption for any three consecutive financial years. That opens opportunities for businesses to grow themselves in their early stages. Apart from that, recognized startups can avoid paying the “angel tax” on investments that they receive from investors. It is clearly outlined in Section 56 of the Income Tax Act. New businesses can effectively use their funds for business development, and they can attract more investors to support their startups.

Easy Winding Up of Company

The Startup India scheme enables startups to close their business operations quickly and efficiently. If a recognized company is unsuccessful, it can shut down its business within 90 days from the date of application. It helps businesses to reduce time and complexity to wind up their business.

Patent Application and IPR Services

Startups recognized by DPIIT are eligible to get many benefits. Recognized businesses receive major advantages in processing patents and intellectual property rights. They can enjoy an 80% discount on patent filing fees. And a 50% discount on trademark filing fees. These benefits help startups protect their inventions and brand names with less money

Access to Funding  

Startup India mainly provides two funds to support registered startups:

• Fund of Fund for Startups (FFS)
• Startup India Seed Fund Scheme (SISFS)

For startups, securing funds is crucial for developing their products. It helps them scale their operations and attract top talent for business growth and development. If your entity is recognized, it helps your business gain trust and credibility. That supports you in securing funds for your business.

Easier Public Procurement Norms

Recognized startup businesses receive more attention from government bodies. When they participate in public procurement, they can get more opportunities to win government contracts. Apart from that, they can also bid more easily. The relaxed norms for recognized startups help them gain better access to public sector opportunities and encourage innovation in government projects.

Procedure for Registering a Startup in India

To register your company in Startup India registration in India, you need to go through the steps given below:

Step 1: Incorporate Your Business 

The first step you should do is to incorporate your business as a private limited company, limited liability partnership (LLP), or partnership firm. To do that, you must follow the standard business registration procedures, such as submitting the registration application and obtaining the Certificate of Incorporation or Partnership registration.

Step 2: Register with Startup India

After following the first step, register your business as a startup. This process is very straightforward, and you can complete it online or get help from the best startup India registration service provider. However, you can also do it by yourself. For that matter, you need to visit the Startup India website and click the ‘Register’ button. And then you need to provide your necessary details, including your name, email ID, and mobile number, create a password, then click ‘Register’.

After clicking on the register button, you will receive an OPT through your email that need to enter. Furthermore, you must provide additional information, such as the type of user, name, and startup stage. Once you do that, click on the ‘Submit’ button to create your startup India profile. With this process, your business is recognized as a startup under the Startup India scheme. You are also eligible for various benefits and support.

Step 3: Obtain DPIIT Recognition

If you are done creating a profile on the Startup India website. This is the time to obtain recognition from the Department for Promotion of Industry and Internal Trade (DPIIT). That will provide many benefits to small and large businesses. Some of the key benefits are:

• Access to high-quality intellectual property services.
• Relaxation in public procurement norms.
• Self-certification for labor and environmental laws.
• Access to Fund of Funds.
• Tax exemption etc.

To obtain DPIIT recognition, log in on the Startup India website and click the ‘Apply for DPIIT Recognition’ option under the ‘Recognition’ tab. Then, select ‘Apply as Company or LLP’ or ‘Apply as Partnership Firm.’ After that, you must select 'Apply for Company or LLP', which will redirect you to the National Single Window System (NSWS) website. Next, choose the ‘Registration as a Startup’ form. Doing so will assist you in officially registering your startup with DPIIT. That will make it eligible for a variety of benefits and support.

Step 4: Submit the Documents for Registration

For seamless Startup India registration in India and to obtain DPIIT recognition, you need to submit the following documents:

• Incorporation/Registration Certificate of your startup.
• Proof of funding, if any.
• Proof of concept, such as a website link, a pitch deck, or a video (applicable for validation/early traction/scaling stage startups).
• Authorization letter of the company’s authorized representative, LLP, or partnership firm.
• List of awards or certificates of recognition, if any.
• Patent and trademark details, if any.
• PAN (Permanent Account Number) Number.

Step 5: Self-Certification of Eligibility Conditions

Self-certify yourself that your company satisfies the following requirements:

• Your company operates as a partnership firm, LLP, or private limited company.
• You have, at most, five years of business incorporation or registration under your name in India.
• The maximum turnover for your organization is Rs. 100 crore.
• Your business is always developing new ideas or enhancing current ones.
• Instead of dissecting or rebuilding an already-existing company, yours is founded on a novel concept. 

Step 6: Obtain Your Recognition Number

When you apply for registration, you will get a recognition number right away. The government will give you the Certificate of Registration or Incorporation after they look over all the papers you posted.

Note: Be sure to enter correct information when posting to avoid mistakes that could cost you up to 50% of your paid-up capital, or at least Rs. 25,000.

Your company can join the Startup India plan and get benefits from the government if it meets the requirements for qualifying and registration.

Final Words

Registering your startup under the Startup India scheme provides many benefits. It helps you with tax exemptions, generates funding opportunities, and simplifies the regulatory process. This recognition empowers you to grow your startup and attract potential investors, which assists you in gaining access to valuable resources. So, if you want to register for this scheme, you can take full advantage of it the best startup registration company to streamline your entire process.