Startup India Scheme

Register under the start up India scheme via LEGAL356 and get a certificate in just 3 to 5 working days. Safe end-to-end online process Submit just 3 documents and kick-start the whole process online now Eligibility Criteria for Startup India Scheme Eligibility Criteria For Startup India Registration is as follows:

• Company Registration: The company must be incorporated as a private limited company, partnership firm or a limited liability partnership. An incubation fund, an angel fund, or a private equity fund must finance the business in order for DIPP to approve it.

• Have Patron Guarantee From: The company should have received a patron guarantee from the Indian Patent and trademark office. Also It requires a recommendation letter from an incubator.

• Company Existence: The company should be brand-new or no more than five years old, and its annual revenue should not exceed ₹25 crores. Innovative and Scalable Entity: The entity should be working towards innovation, development, or improvement of products or processes or services. It is a scalable business model with a high potential for employment generation or wealth creation.

• Startup India Scheme: Documents Required

  The prerequisites are as follows, and the documentation process for applying for a loan under the scheme is somewhat involved:

  Identity Proof

  The bank will accept any legal photo ID provided by the government.

  Address Proof

  Any official document that demonstrates the individual's and the company's addresses.

  Company Documents

  Memorandum of Association (MOA) Articles of Association (AOA) of the company. In the case of a partnership firm, a partnership deed.

  Patent Documents

  Statements of the borrower's and the guarantor's assets and liabilities. the company's three most recent balance sheets

  Company Incorporation Documents

  Company registration certificate from ROC

Benefits of Startup India Scheme

The benefits of the Startup India Scheme are as follows:

Income Tax Benefits

Startups are now given an income tax exemption for a period of three years from the date of incorporation provided they are certified as such by the Inter-Ministerial Board of Certification. Also, upon obtaining recognition from the Department for Promotion of Industry and Internal Trade (DPIIT) and if the aggregate amount of paid-up share capital and share premium of the startup after the proposed issuing of shares, if any, does not exceed ₹25 Crore, the startup will also be exempt from capital gains tax under Section 56 of the Income-tax Act, 1961-2014.

Financial Benefits

Startups are given a rebate on intellectual property rights (IPR) costs of 80% on patents and 50% on trademarks and are actively assisted by government-provided facilitators who aid with protecting and commercialising the IPRs. The examination and disposal of the IPR applications are also fast-tracked. The government will also pay the fees of the facilitators.

Registration Benefits

Startup registration in India is still extremely complex, with incorporation and registration being considered more difficult than the actual running of a business due to the extensive requirements. Under the scheme, it provides a portal to create networking opportunities and assistance for startups. A problem-solving window has been provided by the government under the scheme.

Funding Benefits

Certain states provide seed funding to startups certified under the scheme. To know about your state and the requirements in place.

Startup India Scheme: Regulatory Benefits

Under this scheme, startups are allowed to self-certify compliance for six labour laws and three environmental laws through a simple online procedure. For labour laws, no inspections will be conducted for a period of 5 years unless there is a credible and verifiable complaint of violation, filed in writing, and approved by an official who is at least one level senior to the inspecting officer.

In the case of environmental laws, startups that fall under the ‘white category’ (as defined by the central pollution control board) would be able to self-certify compliance, and only random checks would be carried out in such cases

Public Procurement Benefits

Once your startup is certified by the Inter-Ministerial Board of Certification and a DIPP (Department of Industrial Policy and Promotion) number will be issued to you, you can get listed as a seller on the Government of India’s e-procurement portal – Government e-Marketplace – and have the inside track on all Government of India Ministries/Departments/Public Sector undertakings subject to your ability to meet quality and technical requirements. Certified startups under the Startup India scheme will also be entitled to exemptions on the earnest money deposit in your bid as well as in terms of the requirements regarding prior turnover and experience.

Faster Exit Benefits

The government has initiated provisions making winding down operations easier by appointing an insolvency professional to fast-track the closure of operations and facilitate the sale of goods as well as paying creditors, all while recognising limited liability. Startups with a simple debt structure or those meeting the criteria outlined under this scheme will be able to achieve a complete exit within 90 days.

Checklist of Startup India Scheme

The checklist of the Startup India Scheme is as follows:

• The company must be incorporated as a private limited company, partnership firm or a limited liability partnership

• An incubation fund, an angel fund, or a private equity fund must finance the business in order for DIPP to approve it

• The company should have received a patron guarantee from the Indian Patent and trademark office

• It requires a recommendation letter from an incubator

• For networks, SEBI registration is necessary under Startup India Scheme

• The company should be brand-new or no more than five years old, and its annual revenue should not exceed ₹25 crores

• The Startup India campaign does not impose income tax on capital gains

• Capital gain is exempt from income tax

• It is working towards the innovation, development, or improvement of products or processes or services

• It is a scalable business model with a high potential for employment generation or wealth creation.

Application Procedure for Startup India Scheme Registration

The first and foremost step is to register your company as any one of the following entities:

Private limited company (PLC)

Starting your company as a private limited company under the Companies Act, 2013 will be a major advantage while applying for the startup India scheme. It is crucial to register your company. Get in touch with our experts for clear directions and hustle free private limited company registration process

Limited Liability Partnership (LLP)

Our team can complete limited liability partnership registration quickly. Talk to our experts, provide all the required documentation, sit back and relax. Our team of business incorporation experts will complete the registration and provide the incorporation certificate

After registering your company you can apply directly for the startup India scheme through LEGAL356. Our team will initiate the required paperwork and file completely online.

Why LEGAL356 Startup India Scheme Registration?

Expert GuidanceLEGAL356 has a team of business experts who can guide you throughout the process.

Strong Team

Our team will check with the eligibility compliances of your firm and can help in company registration. They will provide complete guidance with respect to the process. Quick Documentation

They will help you with the documentation and provide a clear cut picture on the startup India scheme. Reach out to us right now to initiate the process without any delay Realistic Expectation

Make sure that your interaction with the government officials and the procedure is smooth as possible. You can get in touch with our experts anytime you want.

Recent Updates on Startup India Scheme

The Startup India Scheme is a flagship initiative of the Government of India launched in 2016 to promote entrepreneurship and innovation in the country. The scheme offers a number of benefits to startups, including tax breaks, funding support, and regulatory relaxations.

Here are some of the recent updates on the Startup India Scheme:

• The Finance Bill 2023 has proposed to extend the eligibility period to claim income exemption for startups under Section 80-IAC of the Income Tax Act by one more year, that is, up to 31st March 2024.

• The RBI has rationalized the reporting process in Single Master Form (SMF) on FIRMS Portal for Foreign Investment in India.

• The Ministry of Corporate Affairs has issued a notification on 30th August, 2022 harmonizing the definition of startup with the DPIIT notification dated 19th February,2019.

• The Department of Promotion of Industry and Internal Trade (DPIIT) has launched a new initiative called Startup India Seed Fund Scheme (SISFS) to provide funding support to early-stage startups.

• The DPIIT has also announced the launch of a new portal called Startup India Investor Connect to facilitate the matching of startups with investors.