The benefits of the Startup India Scheme are Finance support, Government tenders, networking opportunities, etc. Startup India has been launched by Prime Minister Shri. Narendra Modi on 16th January 2016

The benefits of the startup India scheme are:

•    Financial Benefits.

•    Income Tax Benefits.

•    Registration Benefits.

•    Government Tenders.

•    Huge Networking Opportunities.

1. Financial Benefits

The majority of the startups are patent-based. It implies they produce or give exceptional products or services. So as to register their patents, they need to acquire a heavy cost which is recognized as the Patent Cost. Under this scheme, the government gives an 80% reduction in patent costs. In addition, the procedure of patent registration and related is quicker for them. Likewise, the government pays the fees of the facilitator towards obtaining the patent.

2. Income Tax Benefits

The startup has a good amount of benefits under the Income Tax Act. After getting recognition a Startup can apply for Tax exemption under section 80 IAC of the Income Tax Act. After getting clearance for Tax exemption, the Startup could avail of tax holidays for 3 consecutive financial years out of its first ten years since incorporation. After getting recognition a Startup might apply for tax-exempt under Section 56 of the Income Tax Act (Angel Tax).

Special Benefits

•    Manufacturing business startups are exempted from the criteria of ‘prior experience’ or turnover. However, there is no relaxation in the quality standards or the technical parameters regarding public procurement.

•    National Credit Guarantee Trust Company or SIDBI ensures guaranteed funds for over 4 years.

•     Labor Laws inspections shall not be carried out in the first 3 years of incorporation.

•    Environment law compliances are only compulsory after self-certification.

•    Winding up of the corporation could be completed in just under 90 days under the Insolvency and Bankruptcy Code.

3. Registration Benefits

Under the Startup India scheme, an application is there to make easy the registration. A single meeting is arranged for the Start-up India hub. Also, there is a single doubt and problem-solving window for them.

4. Government Tenders

Under the startup India scheme, startups have the benefit of participating in public procurement jobs by means of tenders in getting government tenders. Also, there is relaxation in prior experience, EMD, or turnover criteria. 

5. Huge Networking Opportunities

Networking Opportunities imply the opportunity of meeting with a variety of startup stakeholders at a specific place and time. The government gives this opportunity by conducting 2 startup fests annually nationally and internationally level allowing various stakeholders of a startup to meet. The Startup India scheme also offers Intellectual Property awareness workshops as well as attentiveness.

Eligibility for Registration of Startup India

• Private Limited Company /LLP/Partnership Firm

• Company is offering Innovative products or service

• Registered for not more than 10 years

• Company is having a business model with a high potential for employment enervation OR

• Turnover does not exceed Rs. 100Crore

• The company is having a business model with a high potential for wealth creation

Registration Process for Startup India

There are many steps for registration of Startup India which are given below: – 

1.    Incorporate your business

First, you need to incorporate your business into a Private Limited Company or LLP or Partnership Firm. You just follow the normal procedure which involves filing a form-fitting to get the registration.

2.    Register under Startup India

After that, you need to register the company or firm under the startup India scheme of the Indian government. You fill in all the details in the form which is available on the website of Startup India and then upload some documents as well.

3.    Documents you need to upload in a PDF format only

You need a registration form along with the recommendation letter. You can get anyone’s recommendation letter which is mentioned below:

• A recommendation letter from any post-graduate college in India or in a format that is approved by the DIPP. OR

• A recommendation letter from an incubator that the Government of India funds as a part of any specified scheme to promote innovation; OR

• A letter of funding not less than 20% in equity by an Incubation Fund, or Private Equity Fund, Angel Fund, Accelerator, Private Equity Fund and which is registered with SEBI that countersign with the innovative nature of the business; OR

• A recommendation later by the Central Government or any State Government of India; OR 

• Registration or Incorporation Certificate.

• You need to upload the certificate of incorporation of your company or LLP or a registration certificate for a partnership company and provide a brief description of your business.

4.    If you need tax exemption then mention it

Startups do not have to pay income tax for the first three years in India but avail of some benefits when the company must be certified by the Inter-Ministerial Board. This is where the company registered with DIPP gets relaxation as the registration is enough to get the benefits. 

5.    Self-certification of the following conditions

• Your company is a Private limited company or LLP or a partnership firm.

• In India, Your business must be incorporated or registered not before 5 years. 

• Your company’s turnover must not be more than Rs.100 Crore.     

• Your business must be a fresh idea and not a breakdown or reconstruction of an existing business. 

6.    Get your recognition number

• For the registration of the application, you will get a recognition number with immediate effect.  After the authority goes through all your uploaded documents when you get the certificate of registration or incorporation only.

• Now enroll your company into the Startup India scheme and reap all the benefits which are provided by the government.

 Documents required at the time of Startup India Registration Process-

• • Registration Certificate

    It is essential for you to upload the certificate of incorporation of your company/LLP (Registration Certificate in case of partnership)

  • Email id and mobile number including contact details
  • Company details which shall include the Industry, Sector of work, the category of dealing, registered Office Address etc.
  • Evidence of concept like pitch deck, video, website link in case of a early traction and validation.
  • The details about the Directors or Partners involved with the company which shall include their Name, Photo ID, Gender, Contact number, Email ID, Address)
  • The details of the authorised representatives ( Name, contact details, Designation, Email ID)
  • Revenue model and Uniqueness of the Product.
  • PAN details
  • A Brief Description Of Business

    Provide a quick description of the innovative nature of your business.

  Eligibility for Startup India Registration

  • The organization to be framed must be a private limited organization or a limited liability partnership.
  • The enterprise has not completed a period of ten years from the date of incorporation or from the registration date.
  • The enterprise did not have a turnover exceeding 100 crore annually for any of the financial years since its incorporation.
  • The enterprise should be working towards the development, innovation or improvement of the services or processes with the purpose to generate employment or create wealth.
  • The most important eligibility condition is that the Startup enterprise must not form by reconstructing or splitting up any business which is already in existence.
  • The organizations ought to have gotten the approval from the Department of Industrial Policy and Promotion (DIPP).
  • In order to get approval from DIPP, the firm ought to be supported by an Incubation fund, Angel Fund or Private Equity Fund.
  • The firm ought to have gotten a supporter guarantee from the Indian patent and Trademark Office.
  • It must have a proposal letter by incubation.
  • Capital increase is excluded from income tax under the startup India scheme.
  • The firm should give innovative ideas, products or services.
  • Angel fund, Incubation fund, Accelerators, Private Equity Fund, Angel network should be registered under SEBI ( Securities and Exchange Board of India).