A startup can be described as a business enterprise that has been newly established. They are generally small and started by a single or a group of a few closely knit individuals. One of the main ways in which the startup business is distinct is that it provides with a wholly new service or product which is not provided by anyone else in the market. Hence, the main theme of a start-up business centers on innovation or an innovative approach to things. The startup company creates a completely new product or service or modifies a currently existing product or service with the goal of coming up with something better.
In many cases, the startup companies come into existence when their founders and owners find the existing products and services within that category are really not up to the mark or can be improved. In other words, they intend to rectify the shortcomings of certain products and services or solve a problem and make sure that the end users have a better experience with them. Startups can also be developed when one of the founders and owners come up with an excellent idea for a service or product.
A major advantage of the startup companies is that they can provide employment opportunities for a lot of people. For this reason, the Indian government regularly encourages startup companies to thrive so that they can improve the lives of common people. The startups in India also play a critical role in improving the economy of the country.
Through the Startup India initiative, the startup business owners in India can come up with innovative solutions to life’s challenges and problems and also ensure economically sustainable development for the country.
Startup India functions as an important flagship initiative undertaken by the Indian Government. The main aim of this initiative is to promote a holistic environment for startup ventures to grow and prosper. This can not only give rise to a powerful ecosystem for innovative products and services but also encourage entrepreneurship across the business environment in India. This initiative came into practice from January 16th, 2016 and ever since then it has already given rise to numerous programs that are aimed at assisting the entrepreneurs so that new avenues of employment can be created for people in India.
The programs under Startup India are managed efficiently by a Startup India Team that is dedicated to help startup owners in India. The team reports directly to DPIIT or Department for Industrial Policy and Promotion.
The method through which a startup business enterprise registers itself under the government initiative of Startup India is referred to as Startup India Registration.
There are numerous important benefits of getting Startup India Recognition certificate. Let’s have a look at them.
One of the main benefits that any startup firm can have when it gets Startup India Recognition certificate is tax exemptions. This can offer the business enterprise to save on taxes for 3 years among the initial 10 years of inception. The startup business is also going to have tax exemption according to section 56 of Indian Income Tax Act, i.e. Angel Tax.
The startup companies are going to get about 80% discount during filing of patents. The Government will take care of the whole fees associated with the facilitators managing the patents, the specific designs or any kind of trademarks that these startup companies may choose to file. Startup companies only need to pay the money associated with the statutory fees required. Patent applications filed by these startup businesses are going to go through a quick examination in order to make sure that they are of value. A panel of facilitators is going to help the startup firm when they are looking to file the IP applications.
Self-Certification compliance procedure can be performed for different kinds of environmental laws as well as labour laws. No inspections are going to be performed for the first 5 years for labour laws. Inspections are performed only in cases where there are detectable and accurate complaints of problems or violations that are filed in writing. These complaints also have to be checked and approved by an officer with more experience than the inspecting officer. When it comes to environmental laws, startup companies that fall within ‘white category’ can self-certify their compliance practices. Random checks can be performed for them in those cases.
The startup business enterprise is not required to have prior experience within the manufacturing and development sector. These companies are also not required to submit the Earnest Money Deposit and/or the bid security while filling government tenders. The owners of that startup venture can list their products on Government e-Marketplace which is a major online procurement site and the largest online marketplace for the Government Departments for procuring services and products.
The startup ventures characterized by simple debt structures and also those that comply with definite income criteria can benefit from fast winding up of the enterprise within 90 days once they have applied for insolvency. In such an event, an insolvency case handler is going to be chosen who is going to be in complete charge of that company. This liquidator will handle swift closure of such a business, sell off all the assets, make sure that the creditors are repaid and keep up with distribution waterfall that is determined by the IBC.
The startup India scheme eligibility criteria described below must be observed by the startup ventures when they want to register with Startup India.
There are some steps that you have to follow when you are planning to register your own startup venture under Startup India. Have a look at these steps described below to learn all about such steps.
Here is the process for registering a company in Startup India:
The first thing that you have to do is get your business venture incorporated as a Limited Liability Partnership or a Partnership firm or a Private Limited Company. You should follow all the essential practices meant for business registration such as obtaining Certificate of Incorporation or Partnership registration and other required documentation.
You then need to register your startup venture with Startup India and this can be done online. You need to visit the official Startup India website and put in the various details related to your business on the online form there. You are going to get an OTP sent to your email inbox. Enter this OTP as well as other details for creating your own Startup India profile.
Once this has been done, you can send applications for incubator programs, acceleration programs, the mentoring programs and other topics on Startup India's website. You can also easily access the numerous resources such as the Government Schemes, pro-bono services, Learning programs, development programs and the state polices for the startup ventures.
After you have taken care of the profile creation process, it is important for you to get DPIIT Recognition. DPIIT stands as Department for Promotion of Industry and Internal Trade. When you get DPIIT Recognition, it is going to help you benefit from numerous resources and tools that are going to be good for you. For example, you can avail the best of intellectual Property resources and the associated services, obtain self-certification in accordance with environment as well as labour laws, get help from Fund of Funds, have lenient public procurement norms and also wind up your company easily if you ever need to do that. Other benefits include tax exemptions at different stages and other advantages.
In the ‘Recognition Application Detail’ webpage, the startup venture owner must click on ‘View Details’ under the Registration Details section. This can show the ‘Startup Recognition Form’ that has to be filled up and duly submitted.
A number of essential documents are required for registration. These are listed below.
Once you have sent the application through the website, it is going to provide you with a unique recognition number for your startup company. This certificate will be issued once the documents have been examined. It generally takes about 2 days from the submission for you to get it. Do not upload wrong/forged documents since that can lead to hefty fines.
If you are looking to sign up with Startup India Registration and you are not exactly sure as to how you should proceed, then you can rely on us as we can help you to manage the registration process quickly and accurately. At BusinessWindo, we have been offering Startup India Registration consultation services to startup owners regularly, making sure that startups of various types can benefit from the government regulations that are undertaken by the visionary ideas of our Prime Minister Mr. Narendra Modi. We have already helped many startups to grow and improve the economy of the country and we can do that for your startup business as well.