Start-up Registration

Overview

Starting a business in India involves several steps, and registering your startup is a crucial one. Startup registration offers various benefits, including access to government schemes, funding opportunities, and legal protections. Understanding the process and requirements can streamline the registration process and set your startup on the path to success.

Benefits

  1. Access to Government Schemes: Registered startups can avail themselves of numerous government initiatives aimed at fostering entrepreneurship, such as funding support, mentorship programs, and incubation centres.
  2. Funding Opportunities: Registration enhances credibility and makes it easier for startups to attract investors and secure funding from venture capitalists, angel investors, and government-backed schemes like Startup India.
  3. Legal Protections: Registered startups enjoy legal benefits, including limited liability protection, making it easier to raise capital and protect personal assets in case of business liabilities or bankruptcy.

Tax Exemptions

  1.  Income Tax Exemption: Startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) are eligible for income tax exemption for three consecutive assessment years out of seven years since incorporation, subject to meeting certain conditions.
  2. Capital Gains Tax Exemption: Investors in eligible startups can avail themselves of capital gains tax exemption under Section 54GB of the Income Tax Act, encouraging investment in innovative ventures.

Who Can Apply?

  •  The Startup should be incorporated as a Private limited company or registered as a Partnership firm or a Limited Liability Partnership.
  • Turnover should be less than INR 100 Crores in any of the previous financial years.
  • An entity shall be considered as a startup up to 10 years from the date of its incorporation.
  • The Startup should be working towards innovation/ improvement of existing products, services and processes and should have the potential to generate employment/ create wealth. An entity formed by splitting up or reconstruction of an existing business shall not be considered a “Startup”.

List of Documents Required

  1. Business Profile of the Company
  2. Detailed Note (Report) of the innovativeness of the Product/ Process of the Company;
  3. Application form (draft attached) Please fill all the highlighted areas with due care and Provide signed copy of the same.
  4. Name, Mobile No., E-mail Id, Designation of the Authorized Representative;
  5. Link of LinkedIn profile of all founders/Company, if any;
  6. Website, Pitch Deck (innovative PPT profile) of the Company to make the Startup application more attractive.