Company Registration: The company must be incorporated as a private limited company,partnership firm or a limited liability partnership. An incubation fund, an angel fund, or a private equity fund must finance the business in order for DIPP to approve it.
Have Patron Guarantee From: The company should have received a patron guarantee from the Indian Patent and trademark office. Also It requires a recommendation letter from an incubator.
Company Existence: The company should be brand-new or no more than five years old, and its annual revenue should not exceed ₹25 crores.Innovative and Scalable Entity: The entity should be working towards innovation, development, or improvement of products or processes or services. It is a scalable business model with a high potential for employment generation or wealth creation.
The prerequisites are as follows, and the documentation process for applying for a loan under the scheme is somewhat involved:
Identity Proof
The bank will accept any legal photo ID provided by the government.
Address Proof
Any official document that demonstrates the individual's and the company's addresses.
Company Documents
Memorandum of Association (MOA) Articles of Association (AOA) of the company. In the case of a partnership firm, a partnership deed.
Patent Documents
Statements of the borrower's and the guarantor's assets and liabilities. the company's three most recent balance sheets
Company Incorporation Documents
Company registration certificate from ROC
The benefits of the Startup India Scheme are as follows:
Income Tax Benefits
Startups are now given an income tax exemption for a period of three years from the date of incorporation provided they are certified as such by the Inter-Ministerial Board of Certification. Also, upon obtaining recognition from the Department for Promotion of Industry and Internal Trade (DPIIT) and if the aggregate amount of paid-up share capital and share premium of the startup after the proposed issuing of shares, if any, does not exceed ₹25 Crore, the startup will also be exempt from capital gains tax under Section 56 of the Income-tax Act, 1961-2014.
Financial Benefits
Startups are given a rebate on intellectual property rights (IPR) costs of 80% on patents and 50% on trademarks and are actively assisted by government-provided facilitators who aid with protecting and commercialising the IPRs. The examination and disposal of the IPR applications are also fast-tracked. The government will also pay the fees of the facilitators.
Registration Benefits
Startup registration in India is still extremely complex, with incorporation and registration being considered more difficult than the actual running of a business due to the extensive requirements. Under the scheme, it provides a portal to create networking opportunities and assistance for startups. A problem-solving window has been provided by the government under the scheme.
Funding Benefits
Certain states provide seed funding to startups certified under the scheme. To know about your state and the requirements in place.
Regulatory Benefits
Under this scheme, startups are allowed to self-certify compliance for six labour laws and three environmental laws through a simple online procedure. For labour laws, no inspections will be conducted for a period of 5 years unless there is a credible and verifiable complaint of violation, filed in writing, and approved by an official who is at least one level senior to the inspecting officer.
In the case of environmental laws, startups that fall under the ‘white category’ (as defined by the central pollution control board) would be able to self-certify compliance, and only random checks would be carried out in such cases
Public Procurement Benefits
Once your startup is certified by the Inter-Ministerial Board of Certification and a DIPP (Department of Industrial Policy and Promotion) number will be issued to you, you can get listed as a seller on the Government of India’s e-procurement portal – Government e-Marketplace – and have the inside track on all Government of India Ministries/Departments/Public Sector undertakings subject to your ability to meet quality and technical requirements. Certified startups will also be entitled to exemptions on the earnest money deposit in your bid as well as in terms of the requirements regarding prior turnover and experience.
Faster Exit Benefits
The government has initiated provisions making winding down operations easier by appointing an insolvency professional to fast-track the closure of operations and facilitate the sale of goods as well as paying creditors, all while recognising limited liability. Startups with a simple debt structure or those meeting the criteria outlined under this scheme will be able to achieve a complete exit within 90 days.
The checklist of the Startup India Scheme is as follows:
The first and foremost step is to register your company as any one of the following entities:
Private limited company (PLC) Starting your company as a private limited company under the Companies Act, 2013 will be a major advantage while applying for the startup India scheme. It is crucial to register your company. Get in touch with our experts for clear directions and hustle free private limited company registration process
Limited Liability Partnership (LLP) Our team can complete limited liability partnership registration quickly. Talk to our experts, provide all the required documentation, sit back and relax. Our team of business incorporation experts will complete the registration and provide the incorporation certificate
After registering your company you can apply directly for the startup India scheme through Vakilsearch. Our team will initiate the required paperwork and file completely online.
Expert Guidance
Vakilsearch has a team of business experts who can guide you throughout the process.
Strong Team
Our team will check with the eligibility compliances of your firm and can help in company registration. They will provide complete guidance with respect to the process.
Quick Documentation
They will help you with the documentation and provide a clear cut picture on the startup India scheme. Reach out to us right now to initiate the process without any delay
Realistic Expectation
Make sure that your interaction with the government officials and the procedure issmooth as possible. You can get in touch with our experts anytime you want.
₹945 crore have been approved under the Startup India Seed Fund Scheme (SISFS) for a period of 4 years beginning in 2021–2022. 48 incubators have received approval for financial support totaling ₹192.25 crore as of 10 December 2021, to provide additional seed funding to chosen startups. Incubators have chosen 115 startups so far as part of the programme. Over the next four years, it will provide support to 3,600 entrepreneurs via 300 incubators.
As of 30 July 2022, 102 incubators had received approval for ₹375.25 million under the SISFS, out of a total corpus of ₹945 crore (SISFS). Additionally, 378 DPIIT-recognised startups have received approval from approved incubators under the programme for a total of ₹81.45 crore.
A startup defined as an entity that is headquartered in India, which was opened less than 10 years ago and has an annual turnover of less than ₹100 crores (US$14 million).
Most small businesses take at least 2 to 3 years to be profitable and become truly successful once they've hit the 7 to 10-year mark. Most small businesses take years to be successful, despite the overnight success of companies like Facebook.
If you have all the documents in order, it will take no longer than 15 days. However, this is dependent on the workload of the registrar.
Any individual, or even a company or an LLP, can become a partner. However, only an individual can become a ‘designated partner’ in an LLP.
Typically, only start-ups that will not be looking for venture capital funding register LLPs. This is because venture capitalists only invest in private and public limited companies.
Yes, it is much cheaper to run an LLP than a private limited company, particularly in your early start-up days. This is because many compliances, such as an audit, apply to LLPs only after their turnover is sizable. Most LLPs spend about half as much as a private limited company in their first year on registrations and compliance work.
According to the Economic Times, as of 2020, the top-earning businesses in India are from the financial services, transport and support services, aerospace, defence, and security services, technology services, and health and education services.
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