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What is Startup India Registration?

Startup Registration in India refers to registration of a business entity, be it a company,an LLP, a partnership firm, under the flagship of startup India initiative.

By registering your business in India as a startup, you will get several benefits of startup India registration. these benefits range from getting access to government schemes to exclusive consideration when it comes to government projects.

We have come so far in terms of the sheer number of entrepreneurs that we don’t remember much before the introduction of startup India. Through the emergence of start-ups, there are opportunities of revenue and growth in multiple sectors. Right now, startup registration in India has paved the way for more innovation, more revenue and more hope for the future.

When you start a company that is just a budding venture, it is referred to as a startup. When you start a company in India, you take your first steps towards the world of business. A start-up doesn’t have access to a lot of finance. However, it has all the necessary ingredients of a recipe that can create a successful business:

  1. Dedication
  2. Innovation
  3. Courage

 

And based on these three factors, it can grow. However, the government has noted the potential of such budding companies. Therefore, you can now register a startup in India under the many schemes of the government.

 

 

Why you should register a startup in India?

Registering your startup in India makes your business receptive to the many benefits of startup registration. Some of them include the following points. 

  1. The startup registration process is quite intuitive and simple:Unlike the business registration process in India, where the road is long and the roadblocks are many, the startup registration process is a simple one. It doesn’t involve many steps and all you need to do is to take your innovative approach towards your business take the reins of the procedure. This intuitive registration of a startup makes it optimal for your business to get much-needed assistance when you are just starting up.
  2. When you register your startup, India reduces your IP registration fees: Once you register a startup company in India, the fees of certain IPR registration like patent registration and trademark registration are reduced. Conventionally, that means a reduction of the price of intellectual property registration services like copyright, design, patent or trademark registration by half. It will help you not only start your business but protect your business identity after you are done registering a company in India.
  3. Access to government funds: Government funds are readily available for company that have been registered as startups. It is because, in the eyes of the government, every startup incorporated is one with innovative business and customer solutions standing at the forefront. And thus, the government of India has no issues putting money behind such registrations in India.
  4. Tax exemptions for the first three years: After a startup is registered for the first three years, they are exempted to pay any income taxes. It is beneficial for those entrepreneurs choosing registration in India for the purpose to gain some support from the government when their business is just starting up. This form of incorporation of a company is especially beneficial for those who are yet to find confidence in these business entities.  
  5. Closing a startup firm is also easy: Startup Company registration in India exists for budding businesses that have no idea whether they will succeed or fail in future. And it is said that over 90% of startups fail in their business ventures. Therefore, If you want to close a startup, the process is pretty simple.
  6. Access to more venture capitalists: Because registration of startup in India helps an entrepreneur with several positive aspects including fewer taxes, and easy exit, the venture capitalists aren’t apprehensive about investing in a startup – especially if the business idea is an innovative one.

These benefits when you register with startup India are a sure way to get that initial push you need to grow your business. Furthermore, the perks of registration under startup India that we have explained to you here are just the tip of the ice-berg. There are many other advantages to be had once you obtain the startup certificate registration. But to know about them, you first have to find out whether you are eligible for registration for a startup in India. 

What are the different types of entities that can obtain startup business registration?

The government of India has not put any boundaries on which type of entities can register as a startup:

  1. Private Limited Companies: Private Limited Companies are the most popular business entities in India – suitable for all types of enterprise. Since most entrepreneurs incline to get their business registered as a company in India, the government allows them to start a startup company in India.
  2. Limited Liability Partnerships: Many wonder about the answer to the question – how to register LLP in startup India. The answer is – same as how you would register your company as a startup. Startup registration process has less to do with the business infrastructure and more to do with answering a certain set of questions.
  3. Partnership firm: A partnership firm is a business entity incorporated under the Partnership Act, 1932. If your partnership firm has an innovative business, you can obtain startup firm registration in India.It is not advisable since it will not get income tax benefit

Startup India registration for a proprietorship is not possible because the entity is not registered under any government regulation. Thus, if you have a sole proprietorship firm that you want to incorporate as a startup, contact us to convert it into a One Person Company.

Eligibility Criteria for Startup Registration

Following points constitute of the Startup India registration eligibility criteria:

  • You should be a new startup company: Startup company formation is not possible for old business entities.  The applicant business entity must be registered or incorporated in India for less than 7 years. If you business is older, you will not be considered as a startup as far as the government of India is concerned.
  • Your current turnover shouldn’t exceed INR 25 Crore: The current annual turnover of the applicant’s business entity should not be more than INR 25 Crore. If you the annual turnover of your company is more than this figure, than you are considered far beyond a startup and thus are not considered suitable for its perks.  
  • Your business should be an innovative one: The objective of the applicant’s business entity should be aimed towards development, innovation, deployment, commercialisation of new products, services that are driven by new technology or IP. Too many companies attempt to get their startups registered in India without a second thought to innovation. That’s wrong, wastes the time of the inter-ministerial board setup, and can ruin your chances to get startup company registration in India.

You must first obtain the certificate from the inter-ministerial board: The applicant should have obtained certification from Inter-Ministerial Board Setup.