People do have a business idea but have no clue where to start it from or how to convert the idea into venture. They do not have any idea about how to register their company as Start-up. Moreover, people don’t know even if their company comes into the category of registering as a start-up or not.
Keeping all these questions in mind, in this write-up you will read about how to register a Start-up Company in India or What are the requirements of Start-up registration in India.
Which types of entity are allowed to get recognized as a Start-up Registration?
- Register as a Private Limited Company (Pvt. Ltd.)
- Register as a Limited Liability Partnership Firm (LLP)
- Register as a Partnership Firm (Under Partnership Act 1932)
Before going towards the deep analysis about the registration for start-up. Let us first get to know about: -
What do you mean by a Start-Up?
A Start-up is the company or any organization which is in the early stages characterized as typically risky and uncertain business areas. Start-ups comes into existence with the intend to solve the problems or issues which are being faced by the people.
Start-Up India Scheme
Start-up India Scheme is the initiative by the Hon’ble Prime Minister Shri Narendra Modi in order to promote growth of Start-up in India. DPIIT declared 16th January as a National Start-up Day to acknowledge and support the excellence of the entrepreneurs of India.
What are the requirements of Start-up registration in India?
•The existence and operational period should not be exceeding 10 years from the date of incorporation.
•It should be incorporated as a Private Limited Company, Limited Liability Partnership Firm or Registered Partnership Firm.
•It should have the annual turnover not exceeding Rs.100 Cr for any of the financial years.
•It should not be formed by splitting or reconstructing an already existing business; and
•It should work towards the development and improvement of a product, process, or service.
How to register a Start-up Company in India?
Procedure to register a start-up Company in India is as follows.
1.Incorporate or Register your Business
The first and the foremost step is to incorporate or register your business as the
•Private Limited Company
•Limited Liability Partnership Firm
•Registered Partnership Firm
2.Register under Start-up India Portal
In the next step you need to register your start-up under Start-Up India Scheme at https://www.startupindia.gov.in All you need to do is fill the application form with the relevant details and upload required documents for verification.
What are the Documents Required for Start-up Registration
a)Certificate of Incorporation/ Registration Certificate
b)Details of the Directors
c)Details of Trademark or Patent if any
d)Pan Number
e)A proof of concept which can be in the form of website link, video, pitch deck for Startup at the validation Stage.
3.Tax Exemptions
In India, Start-ups which are incorporated on or after 1st April 2016 can apply for Income Tax Exemption only if the Inter- Ministerial Board (IMB) validates the innovative nature of the business.
•Tax Exemptions for the period of 3 consecutive years out of 10 years from the date of incorporation.
•Exemption under Section 80-IAC of the Income Tax Act.
•Exemption from provision of section 56(2) (viib) of Income Tax Act.
4.Issue of Recognition number and Start-up Certificate
Once the Application is duly submitted on the portal you will get an automatically generated recognition number with immediate effect and the Start-up certificate shall be issued once all the submitted documents are duly verified by the department which may take not more than 2-3 days from the date of filing the application form.
*Frequently Asked Questions (FAQs)
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*Q1. Who is not eligible for Start-up Registration?
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Ans. Any Company or Firm formed by splitting or reconstructing any existing company shall not be eligible for Start-up Registration.
Q2. Do Start-up Company need GST Registration?
Ans. It is advisable to take GST Registration because only in organized business structure people trusted and interested to invest.
*Q3. What is Start-up Scheme?
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Ans. Startup India Scheme is an initiative by the Indian Government for generation of employment and wealth creation. The goal of the Startup India is the development and innovation of products and services and increasing the employment in India.
Q4. Where to check my Company Registered as a Startup or not?
Ans. You can check company is registered as a startup by visiting https://www.startupindia.gov.in/
Q5. How Startup Certificates looks?
Ans. Here is the Start-up Certificate
Q6. Is any Exemption under Companies act 2013 available for startup Companies?
Yes, Wherever Small companies getting the relief for compliance burden under the law, in same manner startup companies are also exempted for many provisions under the Company law.
If you want to get your Start-up registered in India, we at Compliance Calendar LLP has the team of professionals who are experts in the Start-up Company Registration Process and will update you throughout the process. If you have any query, write to us info@ccoffice.in or ping us at 9988424211. We are always available at your service.
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