Startup India is a flagship initiative of the GoI, intended to build a strong eco-system for nurturing innovation and Startups in the Nation that will drive sustainable economic growth and generate large scale employment opportunities. The Govt through this initiative aims to empower Startups to grow through innovation
A startup is a newly established business, usually small, started by 1 or a group of individuals. What differentiates it from other new businesses is that a startup offers a new product or service that is not being given elsewhere in the same way. The keyword is innovation. The business either develops a new product/ service or redevelops a current product/service into something better.
Startups are becoming very popular in India. In order to develop Indian economy and attract talented entrepreneurs, the Government of India, under the leadership of PM Shri Narendra Modi, has started and promoted Startup India initiative to recognize and promote startups.
If you wish to register a startup, India provides several options and benefits. The startup benefits are as follows:
These benefits are a sure way to get that initial push you need to grow your business. Therefore, moving your company through startup India registration is the best idea for your company.
If you were to list one or two of the chief benefits of incorporating your business, one of the top reasons would be the instant credibility for your businesses following incorporation. Adding “Pvt Ltd” after your business name can add instant authority. Consumers, vendors, and partners may prefer to do business with an incorporated company.
Tax flexibility and incorporation tax benefits
There are several tax advantages and benefits of incorporating a small business. Though profit and loss typically pass through the the taxation slabs defined by the government and get reported on the personal income tax returns of owners, can also elect to be taxed as a corporation. Likewise, the owner can avoid double taxation of corporate profits by incorporating their business.
Personal asset protection
Allow owners to separate and protect their personal assets in the event of a lawsuit or claims leveled against a business entity. In a properly structured and managed company, owners should have limited liability for business debts and obligations. This remains one of the biggest benefits to incorporating.
Protocol for Growth
If you look above friends and family, for funds you will need to equity or loans for funding your business. Outsiders will make sure they invest there money in registered forms of business and not in any primitive form of entity. Hence, registering your business becomes a protocol for growth.
Which Business structure is right for you?
We encourage the start-up industry to choose from 2 major forms of entities –
1) Limited Liability Partnership
2) Private Limited Company
Incorporate Your Business
Register with Startup India
Documents to be uploaded (in PDF format only)
Answer whether you would like to avail tax benefits
Finally, you must self-certify that you satisfy the conditions
Immediately get recognition number
To promote awareness and adoption of IPRs by Startups and facilitate them in protecting and commercialising the IPRs, Startup India provides access to high-quality intellectual property services and resources.
Government of India has authorised its ministries, departments and public sector undertakings to relax norms in all public procurements. Startups are entitled to avail exemption on: • Prior Turnover • Prior Experience • Earnest Money Deposit
To reduce the regulatory burden on Startups, thereby allowing them to focus on their core business & keep compliance costs low. Startups are allowed to self-certify their compliance under 6 Labour and 3 Environment laws for a period of 3 to 5 years from the date of incorporation.
Ministry of Corporate Aairs has notified Startups as ‘fast track firms’ enabling them to wind up operations within 90 days vis-a-vis 180 days for other companies. An insolvency professional shall be appointed for the Startup, who shall be in charge of the company for liquidating its assets and paying its creditors within 6 months of filing an application in this regard.
The recognised startups that are granted an Inter-Ministerial Board Certificate are exempted from income-tax for a period of 3 consecutive years out of 10 years since incorporation. Startups incorporated on or after 1st April 2016 can apply for income tax exemption. A DPIIT recognized startup is eligible for exemption from the provisions of section 56(2)(viib) of the Income Tax Act
To provide equity funding support for development and growth of innovation driven enterprises, the government has set aside a corpus fund of INR 10,000 Cr managed by SIDBI. The fund is in the nature of Fund of Funds, which means that the government participates in the capital of SEBI registered Venture Funds, who invest twice the amount in startups.