India is a Nation of Innovation and to fuel the creativity of young minds, the Government of India began Startup India Flagship Program. But it doesn’t begin with just an idea, there’s a lot at the back. How to register your business under the program, necessary documents for certification, criteria to be recognized as startup and other valuable information are pre-requisite.
So, if your inner entrepreneur says “My Company can be the next Zomato, Ola or Udaan,” we are taking your efforts one step further. With our guide on Startup India registration, you can also be the one on the list of successful Startups in India without any fuss and confusion.
Follow the steps as mentioned in the guide and if you are new with zero knowledge and budget, we got your back.
What Is A Startup?
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Let’s start with the basics. A startup is more like a venture/company that either manufactures a product or offers a service to its users. But it differs in the terms that a startup is not fully funded by an individual or group of people.
In short, anyone who aims to start a company but lacks financial support comes under this category. However, the main idea behind it is to serve a unique product or service that aims to improve users’ experience. Take an example of Zomato, there was no door-to-door food delivery service prior to it.
So, if you have ideas that resolve any existing consumer problem and provide employment at the same time, Congratulations! You’ve moved one step ahead. Planning, execution, and gaining resources are a second thing, first is to know how to register your business.
Also Read:5 Best Government Schemes For Small Businesses
Eligibility Criteria To Be Followed By Entrepreneurs
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- The company should be a legal entity and registered either as a Private Ltd, Limited liability partnership, or a partnership firm under the following Acts: Companies Act 2013, Limited Liability Partnership Act, 2008, and Partnership Act 1932
2. The turnover should not exceed Rs 100 crores, earlier the threshold was Rs 25 crores
Approval from the Department of Industrial Policy and Promotion is mandatory and it should not be older than 2 years upon the date of registration
3. A company formed by reconstructing an existing business is not eligible. Uniqueness and Innovation should be the base of the formation and those falling under biotechnology, defense, energy, healthcare, education, food processing, oil, and gas, etc are eligible
4. Funding received by either central or state government scheme details should be shared with SEBI. The fund should not exceed Rs 10 lakh excluding prize money or subsidies
These are the mandatory criteria one must meet, click here for full guidelines.
Steps To Register A Business Name Under Startup India
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Step 1– Go to the official website- www.startupindia.gov.in. Register your profile by clicking on the Register button at the top. Fill in the necessary details and upload the following documents mentioned as mandatory- letter of recommendation issued by government-oriented incubators, Fund details, certification of incorporation, and more.
Step 2– Mention whether you want tax exemption benefits or not. If yes, then get your business register under Inter-Ministerial Board. Upon registration, you will be exempted to pay Angel tax, long-term capital gains tax, ESOP, and income tax only for limited years.
Step 3– Get a recognition number by submitting your application for business registration.
However, you won’t get the certification of registration immediately. Authorities will scrutinize the application and check for the eligibilities and document verification. Upon any discrepancy, one would be liable to pay hefty fines.
Also Read: Top 7 Small Business Ideas To Start From Scratch
A company not less than 10 years older is eligible for startup registration. Make sure your company fulfills all the criteria and has necessary documents; most importantly it should stick by the motive of innovation.