What is the Start-up Initiative of the Government of India?
The ongoing initiative of Startup India was launched by the Government of India in January 2016. The objective was to boost startup culture and create an environment of entrepreneurship in India. Startup India is a flagship initiative of the Government of India, intended to build a strong ecosystem for nurturing innovation and startups in the country that will drive sustainable economic growth and generate large-scale employment opportunities. Through this initiative, the government aims to empower startups to grow through innovation and design.
*India is the third-largest startup hub in the world. About 31,945 startups under the Startup India initiative have been recognized by DPIIT to date.
What is the Objective of the Start-up Initiative?
The Startup India initiative has rolled out several programs with the objective of supporting entrepreneurs, building a robust startup ecosystem, and transforming India into a country of job creators instead of job seekers. These programs are managed by a dedicated Startup India team, which reports to the Department for Promotion of Industry and Internal Trade (DPIIT).
Which Types of Entities Are Eligible for Start-up Registration?
An entity is required to satisfy the following conditions for startup registration:
- It should be a private limited company or registered as a partnership firm or limited liability partnership.
- Its turnover should be less than ₹100 crore in the previous financial years.
- An entity shall be considered a startup up to 10 years from the date of its incorporation.
- The entity should be working towards innovation or improvement of existing products and services, and should have the potential to generate employment or create wealth.
- An entity formed by splitting up or reconstruction of an existing business shall not be considered a startup.
What Is the Objective of Recognizing an Entity as a Start-up?
The objective of startup recognition is to reduce the regulatory burden on startups, thereby allowing them to focus on their core business, keep compliance costs low, and provide various benefits.
What are the benefits available to an entity after recognition as a start-up?
The following benefits are available to an entity after recognition as a start-up:
- Self-Certification: Start-ups are allowed to self-certify compliance with six labor laws and three environmental laws through a simple one-line procedure.
- Fast Tracking of Start-up Patent Applications: Patent applications filed by start-ups are fast-tracked for examination so that their value can be realized sooner. Start-ups are also provided an 80% rebate on patent filing fees compared to other companies.
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Income Tax Benefits:
1. Eligible start-ups can be exempted from paying income tax for three consecutive financial years out of their first 10 years since incorporation.
2. Exemption under Section 56(2)(VIIB) of the Income Tax Act. - Easy Winding-up Procedure: As per the Insolvency and Bankruptcy Code, 2016, start-ups with simple debt structures or those meeting specified income criteria can be wound up within 90 days of filing for insolvency.
- Easier Public Procurement Norms: The Government E-Marketplace (GeM) is an online procurement platform and the largest marketplace for government departments to procure products and services. DPIIT-recognized start-ups can register on GeM as sellers and directly offer their products and services to government entities. This provides a great opportunity for start-ups to work on trial orders with the government and benefit from relaxed procurement norms.
procedure for Licence
What is the procedure of Start-up registration?
An entity want to registered itself as start-up is required to make on line application to Department for promotion of industry and internal Trade (DPIIT) through the National single window system (NSWS) along with the prescribed documents.
What are the documents required for Start-up registration?
Following documents are required for Start-u registration
- A certification of incorporation or registration ,as the case may be
- Pan No. of Entity
- Pan and Aadhar No. of Authorise representative
- Email Id and Mobile No of Authorise representative
- Emil id and Mobile No. of Entity
- A write-up about the nature of business.
- Other documents
How can we help you?
We assist the persons in obtaining start-up registration by providing specialized services. We have an expert team that deals with these matters and provides proper guidance to our clients without manipulating the facts and makes sure to deliver the registration certificate within a reasonable time period.
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