Startup Registration in India

The Startup India Scheme is a significant initiative of the Indian Government that aims to establish a robust ecosystem for fostering innovation and startups in the country, leading to sustainable economic growth and job creation. To be recognized as a "Startup" under this scheme, a business must obtain a Certificate of Registration from the Startup India Hub. Filing Buddy is a well-known business platform that offers end-to-end incorporation, compliance, advisory, and management consultancy services to clients in India and abroad. At Filing Buddy, you can avail the benefits of Startup Recognition for your Person Company, Private Limited Company, Partnership firm, or LLP at affordable prices. 

The eligibility Criteria For Startup India Registration are as follows:

• Company Type: For the registration, the company must have been previously incorporated in India as a private limited company or registered as a partnership firm or a limited liability partnership.
• Company's Age: The entity must be registered for at most 10 years as a Private Limited Company, Partnership firm, or Limited Liability Partnership.
• Annual Turnover: The entity's turnover should have stayed within one hundred crore rupees since incorporation/ registration in any financial year.
• Original Entity: The entity must not have been formed by splitting up or reconstructing an existing business.
• Innovative: The startup must focus on innovating, developing, or enhancing products, services, or processes, or have a scalable business model with the potential for creating jobs or generating wealth.

Identity Proof

Any legal photo ID issued by the government can serve as identity proof for the bank.

Address Proof

To prove the individual's and company's addresses, any official document will suffice.

Company Documents

Memorandum of Association (MOA), Articles of Association (AOA), and for a partnership firm, a partnership deed.

Patent Documents

The borrower's and guarantor's asset and liability statements, as well as the company's three most recent balance sheets, constitute the patent documents.

Company Incorporation Documents

The bank requires a company registration certificate from the ROC as proof of company incorporation.

• Income Tax Benefits: 

Startups can enjoy a 3-year income tax exemption if they are certified as such by the Inter-Ministerial Board of Certification, and if their paid-up share capital and share premium do not exceed ₹25 Crore after issuing shares. They are also exempt from capital gains tax under Section 56 of the Income-tax Act, 1961-2014.

• Financial Benefits: 

Startups can get an 80% rebate on patent costs and a 50% rebate on trademark costs for intellectual property rights. The government also provides facilitators to assist with protecting and commercializing IPRs and fast-tracks their examination and disposal. Additionally, the government pays the facilitators' fees.

• Registration Benefits: 

Startup registration is complex in India, but the government provides a networking portal and assistance to help startups. A problem-solving window is also provided.

• Funding Benefits: 

Some states offer seed funding to startups that are certified under the scheme.

• Regulatory Benefits: 

Startups can self-certify compliance with 6 labor laws and 3 environmental laws through an online procedure. No labor law inspections will be conducted for 5 years unless there is a written complaint of violation filed and approved by a senior official. Environmental law startups under the 'white category' can self-certify compliance, and only random checks will be carried out.

• Public Procurement Benefits: 

Certified startups can be listed as sellers on the Government e-Marketplace and get inside access to all Government of India Ministries/Departments/Public Sector undertakings. They are also entitled to exemptions on earnest money deposits in bids, and in terms of requirements regarding prior turnover and experience.

• Faster Exit Benefits: 

Startups with a simple debt structure or those meeting the criteria outlined under this scheme can achieve a complete exit within 90 days. The government facilitates the sale of goods, pays creditors, and recognizes limited liability.

• The company should be incorporated as a private limited company, partnership firm, or limited liability partnership.
• To gain approval from DIPP, the business must be financed by an incubation fund, an angel fund, or a private equity fund.
• The company should have received a patron guarantee from the Indian Patent and Trademark Office.
• A recommendation letter from an incubator is mandatory.
• Networks require SEBI registration.
• The company must be newly established or no more than five years old, with annual revenue not exceeding ₹25 crores.
• Capital gains are exempt from income tax under the Startup India campaign.
• The company should focus on innovating, developing, or improving products, processes, or services.
• The business model should be scalable and have the potential to generate employment or create wealth.