Startup Registration
Startup India, initiated by the Government of India is a flagship initiative launched in January 2016. Any company which fall into below list of category will be called as “Startup" and eligible to be recognised by the DPIIT to avail the benefits from the Government of India.
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Age of the Company – The Date of Incorporation should not exceed 10 years.
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Type of Company – Should have been Incorporated as a Private Limited Company or a Registered Partnership Firm or a Limited Liability Partnership.
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Annual Turnover – Should not exceed Rs.100 crore for any of the financial years since its Incorporation.
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Original Entity – The company or Entity should have been formed originally by the promoters and should not have been formed by splitting up or reconstructing an existing business.
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Innovative & Scalable – Should have plan for development or improvement of a product, process or service and/or have a scalable business model with high potential for the creation of wealth & employment.
Benefits from DPIIT
Under the Startup India Initiative, the companies which are registered under DPIIT are eligible to receive the following benefits:
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Simplification and Handholding – Easier compliance, easier exit process for failed startups, legal support, fast-tracking of patent applications and a website to reduce information asymmetry.
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Funding & Incentives – Exemptions on Income Tax and Capital Gains Tax for eligible startups; a fund of funds to infuse more capital into the startup ecosystem and a credit guarantee scheme.
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Incubation & Industry-Academia Partnerships – Creation of numerous incubators and innovation labs, events, competitions and grants.
Eligibility For Startup Registration
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The company to be formed must be a private limited company or a limited liability partnership.
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The firms should have obtained the approval from the Department of Industrial Policy and Promotion (DIPP).
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To get approval from DIPP, the firm should be funded by an Incubation fund, Angel Fund or Private Equity Fund.
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The firm should have obtained a patron guarantee from the Indian patent and Trademark Office.
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It must have a recommendation letter by an incubation.
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Capital gain is exempted from income tax under the startup India campaign.
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The firm must provide innovative schemes or products.
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Angel fund, Incubation fund, Accelerators, Private Equity Fund, Angel network must be registered with SEBI ( Securities and Exchange Board of India).
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Connect Soul is here to help you register your Start Up. You just need to give us the required documents and we’ll make sure that the registration process of your business is smooth and fast. Book an appointment with us to consult and resolve all your legal and financial worries about conducting a business.