There are few simple steps for getting Startup India Registration:
Startup India Scheme is the Central government’s initiative, whose primary objectives are the promotion of startups, generation of employment, and the creation of wealth. Under Startup India Registration, new-entrants are granted a tax-holiday for three years and the Government through this initiative aims to empower startups to grow through innovation and design.
Startup means an entity whose period existence and operation should not be exceeding 10 years from the date of Incorporation. Annual turnover should not exceed Rupees 100 Crores in any preceding financial year. Startup should towards development or improvement of a product, process or services.
Recognition of a startup shall be up to 10 years from the date of incorporation or if its turnover for any previous year exceeds Rupees 100 crores.
startups are concentrated on earning revenues and maximizing their profits by using various methods. In the initial years, most of the startups are bootstrapping their organizations out of their hard-earned money. One of the ways to enhance your earnings is to reduce the cost. Government collect 25% of our income in form of Income tax which leads to increased cost. We can save this cost for three years by simply registering our startup with the Startup India initiative.
Startups are allowed to self-certify to comply with 3 environmental laws and 6 Labour Laws. No inspection will be conducted for period of three years, in the case of labour laws.
You can easily windup of Companies in just 90 days under Insolvency & Bankruptcy Code, 2016.
After recognition under Startup India, you can fast track your patent application with up to 80% rebate in filling patents. The startup will bear only the statutory fees and the government will bear all facilitator fees.
Get Exempt from:
Post getting recognition a Startup may apply for Tax exemption under section 80 IAC of the Income Tax Act. After getting approval for Tax exemption, the Startup can avail tax holiday for 3 consecutive financial years out of its first ten years since incorporation.
Post getting recognition a Startup may apply for Angel Tax Exemption.
Eligibility Criteria for Tax Exemption under Section 56 of the Income Tax Act:
a. The entity should be a DPIIT recognized Startup
b. Aggregate amount of paid up share capital and share premium of the Startup after the proposed issue of share, if any, does not exceed INR 25 Crore.
The first step is to register your business or get it incorporated as an entity. It can be a Private Limited Company or a Partnership firm or a Limited Liability Partnership depending upon certain criteria like the staff, scale, operations, partners willingness and other aspects.
The procedures for incorporation is normal for registering any business. Before registering your business with Startup India, you must obtain the certificate of Incorporation/Partnership registration, PAN, and other required compliance.
The next step is to get your business or a company registered as a startup. The entire process of Startup India registration is online and has been made simple. The startup owner is required to visit the official website of Startup India i.e startupindia.gov.in and fill up the form in the prescribed format with all the necessary details of your business along with uploading of certain important documents required for startup india registration.
A letter of recommendation needs to be submitted with the registration form on the website and it could be from any of the following:
The other document which needs to be uploaded is the certificate of incorporation of your company/LLP or the Registration Certificate in case of partnership firm.
A detailed description of the business, describing the innovative nature of your products/services also needs to be uploaded.
The government is exempting the startups from income tax for the first 3 years. But in order to avail these benefits, they must be certified by the Inter-Ministerial Board (IMB). While the start-ups recognised by DIPP or Govt. of India can directly avail IPR related benefits.
That’s it! On applying you will immediately get a recognition number for your startup. The certificate of recognition will be issued after the examination of all your documents.
However, in case the required document uploaded/wrong document uploaded or a forged document has been uploaded then you shall be liable to a fine of 50% of your paid-up capital of the startup with a minimum fine of Rs. 25,000.
IEC Stands for Importer Exporter code which is a 10 digit number issued by Director General of Foreign Trade, Department of Commerce, Government of India. It is a registration required for traders importing or exporting goods and services to or from India.
Import Export Code number is a proof of a firm as an Exporter/Importer in India. IE code can be submitted with government authorities as a proof of trade to obtain various benefits on their exports / imports from DGFT, customs etc.