The Ministry of Commerce and Industry, through the Department for Promotion of Industry and Internal Trade promotes the Start-Up ecosystem in the country to incentivize the entrepreneurs in setting up new start-up ventures and thus catalyze the creation of employment opportunities through them. Startups play a major role in any economy, they may be small in size but they do create a number of job which leads to an improved economy. They also contribute to innovation and competition and help in the overall development of a country’s economy.
Criteria for registering an entity as a startup
- The date of incorporation of the entity should not be more than 10 years
- The Company is incorporated as a private Limited Company, a registered partnership firm or a limited liability partnership
- The annual turnover of the company should not exceed INR 100 crore for any financial year since its inception
- The company should be an original entity
- The company should work towards development or improvement of a product, process or service and/or have scalable business model with high potential for creation of wealth & employment
We at IPLF have a dedicated and experienced team that work on all sorts of government registration and hence are well placed in assisting clients with getting DPIIT startup recognition from the scratch without any hassle. Our team is well versed with the procedure of getting registration of startups and shall assure a smooth process so that an eligible entity does not miss out on the various perks that come with such registration.
- The first step is checking the eligibility of the entity in getting recognition as a start-up.
- Our team then procuring information/documents required for registering online at the startup India website.
- Our team shall then prepare the online application for an efficient submission with all the appropriate details and documents.
- After a careful evaluation of the application and the attached documents, the DPIIT grants certificate of recognition for start-up to the entity.
- Name of the company
- PAN of the company
- Full Address of the company
- Name and Details of authorised representative
- Directors and Partner Details of the entity
- Company Registration Number and Date
- Company Incorporation/Registration Certificate
- Brief description of the company’s nature of business
- Letter of recommendation/support from incubators or any state/central Government authority
- Number of employees in the company
- Funding proof, if required
- Focus areas of Research and type of products/services being rendered and explanation of revenue stream of the entity
1. Is there an applicable fee payable to DPIIT for getting recognition?
No, the entities are not required to pay any fee to the DPIIT for getting recognition as a start-up.
2. What is the winding-up duration of start-up entitites?
Unlike other companies, a start-up has an easier winding up process and can be wound up within 90 days of applying for insolvency.
3. What are the IP benefits for a start-up entity?
A recognised start-up is required to pay only 20 percent on the official fees of filing an IP (Patent, Copyright, Design, Trademark) and also has the fast-tracking benefit on its patent application. No Attorney fees is required to be paid.
4. What are the funding benefits available to start-ups?
A recognised start-up shall be eligible to get INR 10000 crore funds of funds (i.e. the funds won’t be invested directly but through the capital of SEBI registered venture funds) from Alternative Investment Funds and INR 2000 crore Credit Guarantee fund through the National Credit Guarantee Trust Company or SIDBI over a period of four years
5. What are the tax benefits available to start-ups?
A recognised start-up can apply for Tax Exemption under section 80 IAC of the Income tax Act and receive income tax holiday for a period of three consecutive years.
6. What are the consequences of providing incorrect information and documents while registration?
In such a case, the start-up would be liable to pay a penalty of fifty percent of the paid-up capital of the entity.
7. What is self certification of a start-up?
Self certification allows the start-ups to self compliance with nine labour and environment laws, without an inspection for three years, by logging into the Shram Suvidha portal.