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Startups are widely popular all around the globe and are now a household name in India as well. The Government of India launched the Startup India scheme in 2016 to support the growing entrepreneurship culture in the country. With this scheme, the government is creating employability opportunities apart from promoting entrepreneurship. After going through this article you’ll get well acquainted with the process of startup registration. 

Legally, a startup is a company based in India which is not older than 10 years with an annual turnover not exceeding Rs.100 crores. The Startup India scheme provides a regulated and robust ecosystem for the startup culture to rise and expand all over the country. With a country like ours and the ever growing population rate, we, as a country, can become the startup superpower in the global market. 

Are there any benefits for the startups to get registered?

Yes, the Department for Promotion of Industry and Internal Trade has been set up for the very purpose to monitor and help ease out the process of startup registration. Well, you might want to consider hiring a project management consultancy expert to help you with the registration process. This way you can ensure hassle free and faster registration. 

Taking a look at the benefits under the Startup India scheme, it’s easy to comprehend the government’s vision to foster the economy's growth. The exemptions that the registered startups are provided with are 

• Tax exemption

• Self certification

• Availing loans and bank account 

• Obtaining government tender  

The six steps to follow in the process of startup registration :

Incorporating your business : The first step in the process of startup registration is incorporating your business. You need to be clear whether your startup is going to be a Private Limited Company, Limited Liability Partnership or a Partnership Firm. How do you do so? Simply just following the registration procedure by filing for registration and obtaining the certificate of incorporation. 

For filling for a Private Limited Company or a Limited Liability Partnership, you need to file an application with the Registrar of Companies of your region. Submit the necessary documents, pay the fees to the Registrar of Companies accordingly along with the registration application and you're good to go!

Registering with the Startup India Scheme : As the next step in the process of startup registration, you go to the official website of the Startup India scheme and register. The website is easy to navigate through and you simply need to fill the online  application form alongside uploading the necessary documents and proofs. 

Gathering the required documents : Moving onto the third step, you keep handy the following required documents. 

• The Incorporation/Registration Certificate of your startup

• Document regarding funding proof, if any (not less than 20% in equity)

• An Authorisation letter of the authorised representative of the company, whether it be a LLP, partnership or Private limited 

• Patent and trademark details, if any

• A letter from the state or central government or any government/private incubator if they assisted you

• For innovative nature of the business, a recommendation letter from an incubator known in any post graduate college in india, in a DPIIT approved format 

• PAN Number/ GST number (if applicable) 

1. Availing tax exemption : Startups can avail exemption from paying taxes for the first three years if they are approved by the Inter-Ministerial Board. To get such advantages, your startup has to be certified by the Inter-Ministerial Board and hence DPIIT plays an important role here. Companies registered with DPIIT get relaxation as it serves as a proof to be eligible to enjoy the benefits. 

2. Self-Certifying :  Approaching the second last step of the process of startup registration, you need to get your startup self certified for the following conditions: 

• Your startup is a Private limited company, an LLP or a partnership firm.

• Your startup must be incorporated or registered in India, at least not before five years. 

• Your company’s turnover must not exceed Rs 100 crore. 

• The company has to keep innovating a new product or provide a unique service. Basically something new in order to be deemed as a startup. 

• Your startup must be a fresh idea and not a splitting up or reconstruction of an existing business. 

Getting the registration number : Hurray! You've reached the last step of the process of startup registration. After successful completion of above mentioned steps, your startup will be registered and a unique registration number is provided to your company. The process is usually completed within 2 working days of you submitting documents online alongwith a completed application. Make sure all the documents you upload are correct, clear and true to nature. Any discrepancy in this step should be avoided. Otherwise you're bound to be fined a whopping 50% of the paid up capital of your startup or Rs.25,000 at the very least if the documents are forged or invalid. 

What are you waiting for, get your start-up registered now to avail the many benefits of the start-up India scheme. If your startup requires managerial, technical, legal and financial planning you should hire an expert for your startup’s registration process.

At Kamtech we have a team of experienced professionals that have been providing consultancy services to start-ups and entrepreneurs in India, Kenya, Tanzania, UK, and China for the last two decades. We can help you in taking your idea to the next level by implementing it and launching it globally. Some of the start-ups and entrepreneurs mentored by our team have also been awarded by different state governments and the central government in the country. Reach out to us for a no-obligation consultation today.