The Emergence of Startups in India
Over the past decade, our country has become one of the fastest and most reliable startup hubs. Since we are fuelled by a large pool of talented entrepreneurs that have their own innovative ideas, the country’s startup scene has flourished a lot, and a lot will happen in the future. These startups address societal problems with inventive solutions and rework existing products or services for the betterment of society. The Indian Government has dramatically supported this growth. Under the leadership of PM Narendra Modi, the GOI has launched the Startup India initiative to encourage entrepreneurship, stimulate economic growth, and attract more startup ventures.
Startup India Initiative
Startup India is an initiative to encourage entrepreneurship and promote innovation by creating an ecosystem favourable to the growth of startups in India. This initiative provides promising entrepreneurs the resources, benefits, and support they need to grow their businesses. From providing educational materials to organizing networking events, the industry is a complete package designed to equip startups with the knowledge, skills, and tools they need to succeed.
Step-by-step Guide to Register Your Startup in India
Step 1: Incorporating your Business
The first crucial step to setting up your startup in India involves incorporating your business legally. You can register as a Private Limited Company, a Partnership firm, or a Limited Liability Partnership. Whichever company entity you choose, you will need to follow specific procedures to register your business. Further, if you are still determining which company type will suit your business needs, expert assistance for Chartered Accountants can significantly help you in the development phase of registering your startup.
Incorporating your business requires you to file a registration application with the Registrar of Companies (ROC) or the Registrar of Firms, depending on your business type. This application must include all the necessary documents and fees required for registration. Once your application is approved, you will get a Certificate of Incorporation/Partnership Registration.
Step 2: Registration with Startup India
Once your business is officially incorporated, the next step is to register it as a startup on the Startup India website. The process is straightforward and entirely online. The site asks for information such as your name, email ID, mobile number, the type of user, and the startup stage. After filling in these details, your Startup India profile will be created.
After registering your startup, you can leverage various resources on the Startup India website. These include access to learning and development programs, government schemes, state policies for startups, and pro-bono services. The website also allows you to apply for various acceleration and mentorship programs.
Step 3: DPIIT Recognition
The subsequent step is the Department for Promotion of Industry and Internal Trade (DPIIT) Recognition. DPIIT Recognition endows startups with several benefits, including access to quality intellectual property services, easing public procurement rules, self-certification under labour and environment laws, and easy company dissolution.
The process to obtain DPIIT Recognition is conducted on the Startup India website. You must log in with your registered profile and then apply for DPIIT Recognition under the Recognition tab.
Step 4: Filling the Recognition Application
This step involves filling out the ‘Startup Recognition Form’. The form requests details such as your startup’s details, address, authorized representative details, information about the startup’s activities, and self-certification. The form also includes sections for the details of directors or partners. After filling in all the sections, you must accept the terms and conditions before clicking the ‘Submit’ button.
Step 5: Submission of Documents for Registration
The following documents need to be submitted for the registration of your startup:
- Incorporation/Registration Certificate
- Proof of funding (if any)
- An authorization letter from the authorized representative of the company, LLP, or partnership firm
- Proof of concept like a pitch deck, website link, or video
- Patent and trademark details (if any)
- List of awards or certificates of recognition (if any)
- PAN Number
Step 6: Getting the Recognition Number
After successfully submitting the necessary documents, your startup will be issued a recognition number. Usually, it takes around two days for the certificate of recognition to be issued after the online submission of details.
Step 7: Some More Areas Which You Need Consider
With the registration complete, other areas require your attention. Securing patents, trademarks, or design registration is essential if your business idea is unique and inventive. You can seek assistance from the Government’s list of facilitators for this process.
Furthermore, securing funds is a critical challenge that many startups face. The Government has set up a fund to support startups financially to address this. This fund is designed as a ‘Fund of Funds’, implying that it will invest in Venture Funds registered with SEBI, which will invest in startups.
Regarding compliance, startups can self-certify under six labor and three environment laws for 3 to 5 years from incorporation. This provision significantly reduces the regulatory burden on startups.
Lastly, eligible startups are exempted from income tax for three years, provided they are certified by the Inter-Ministerial Board (IMB). Startups formed on or after 1st April 2016 can apply for this income tax exemption.
This comprehensive guide gives you all the information necessary to register your startup in India. The process, though intricate, is designed to be user-friendly and beneficial for entrepreneurs. Take each step carefully, and you’ll be well on your way to making your startup dream a reality.
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