The Startup India initiative, launched by the Government of India, aims to bolster the ecosystem for supporting innovation and startups in the country. If you’re an entrepreneur looking to benefit from this initiative, here’s a simple guide on how to register your startup under the Startup India scheme.
What is the Startup India Scheme?
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. The scheme aims to empower startups to grow through innovation and design.
Benefits of Registering Under the Startup India Scheme
- Tax Exemptions: Startups can receive income tax exemptions for three consecutive years and exemptions on capital gains and investments above Fair Market Value.
- Easier Compliance: Reduced regulatory burdens with easier compliance, patent filing, and environmental clearances.
- Funding Opportunities: Eligibility for government funds and guaranteed funds through SIDBI fund of funds.
- Networking Opportunities: Chance to connect with other entrepreneurs, mentors, and investors at specially organized fests and events.
Steps to Register Your Startup Under the Startup India Scheme
- First, incorporate your business as a Private Limited Company, Partnership firm, or a Limited Liability Partnership. You must follow the normal procedures of business registration like obtaining a Certificate of Incorporation/Partnership registration, PAN, and other required compliance.
Register with Startup India
- Visit the Startup India portal and fill out the online registration form. You will need to enter details about your business and upload certain documents.
Documents and Details Required
- Business Description: A brief about what your business does.
- Proof of Concept: Proof that your business is an innovation, such as a pitch deck or a website link.
- PAN: A copy of the PAN Card of the business.
- Incorporation/Registration Certificate: A copy of the incorporation certificate or partnership deed.
- Details of Directors/Partners: Details and IDs of the promoters and partners.
- Additional Questions:
- Describe the nature and category of your product/service.
- Explain what makes your product/service innovative.
- Outline your revenue model.
- Provide employee and co-founder details.
- State any funding received, and previous incubation details if applicable.
- List any awards or recognitions received.
- Other Registrations: Information on patents or intellectual property, if applicable.
Get Recognition Number
- Once the application is filled and uploaded with the correct documents, a recognition number will be issued immediately. However, the certificate of recognition is issued after the examination of all your documents.
A: Any entrepreneur having an innovative idea that aims for wealth creation and employment can register under the Startup India scheme.
A: If all your documents are in order, the approval can come through immediately after the verification of documents, which might take up to a few weeks.
A: No, there is no fee for registering your startup under the Startup India scheme.
A: Registered startups can enjoy direct tax exemptions for three years, exemption on capital gains, and on investments above their fair market value.