{"id":2190,"date":"2022-05-04T05:26:03","date_gmt":"2022-05-04T10:56:03","guid":{"rendered":"https:\/\/smjadvisors.com\/?p=2190"},"modified":"2022-05-17T06:22:30","modified_gmt":"2022-05-17T11:52:30","slug":"startup-india","status":"publish","type":"post","link":"https:\/\/smjadvisors.com\/startup-india\/","title":{"rendered":"Startup India"},"content":{"rendered":"\n

There have been many changes in the corporate structure in India, including the amendment to the Companies Act. The introduction of the Startup India<\/strong> program by the Government of India has been a major milestone. The benefits of the Startup India<\/strong> program are many and have contributed to the growth of India’s entrepreneurial culture.<\/p>\n\n\n\n

There are many benefits from the Startup India program, including the creation of jobs, wealth, and the promotion of indigenous industries. According to NASSCOM and Zinnov, \u201cIndia is the third-largest startup destination in the world. Startup India aims to promote entrepreneurship through an ecosystem.\u201d<\/strong><\/em><\/p>\n\n\n\n

Startup India aims at the development and innovation of products and services. It also strives to create more employment in India. Among its many benefits, Startup India also aims to ensure the following:<\/strong><\/em><\/p> – Simplify work<\/strong>
 – Financial aid<\/strong>
 – Networking opportunities<\/strong>
 – Government tenders<\/strong><\/cite><\/blockquote>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The startup community in India has experienced a rise in innovative ideas since 16th January 2016. Also, the entrepreneurial spirit of the country’s youth has grown at an unprecedented rate.<\/em><\/p><\/blockquote>\n\n\n\n

<\/p>\n\n\n\n

Startups in India are most commonly registered as:<\/strong><\/h3>\n\n\n\n
  1. Partnership Firm<\/li>
  2. Limited Liability Partnership Firm (LLP)<\/li>
  3. Private Limited Company<\/li><\/ol>\n\n\n\n

    Eligibility for Registration under Startup India<\/strong><\/h3>\n\n\n\n

    To be eligible for the benefits under this scheme, the above-mentioned company(s) must meet the following eligibility criteria:<\/strong><\/p>\n\n\n\n

    • You must form a private limited company or a limited liability partnership.<\/li>
    • The firm must be approved by the Department of Industrial Policy and Promotion (DIPP).<\/li>
    • A recommendation letter from an incubator is required.<\/li>
    • Innovative products or schemes are required from the firm.<\/li>
    • The firm should be new and not older than five years.<\/li>
    • The company should not have a turnover exceeding 25 crores.<\/li>
    • It should not be a result of a business already existing, such as a company forged through the restructuring process.<\/li><\/ul>\n\n\n\n

      In addition to meeting the above eligibility criteria, a start-up can benefit from several other benefits as well.<\/strong><\/p>\n\n\n\n

      Benefits of Startup India Scheme:<\/strong><\/h3>\n\n\n\n
      1. Self-Certification<\/strong><\/li><\/ol>\n\n\n\n

        The company must comply with various labour laws, noncompliance with which leads to strict liability, startups since they are fairly new to the eco-systems end up neglecting them.<\/p>\n\n\n\n

        For startups to reduce their regulatory liabilities, nine labour laws and environmental legislation can be self-certified. For three years, no inspections will be conducted.<\/p>\n\n\n\n

        1. Tax Exemption<\/strong><\/li><\/ol>\n\n\n\n

          Any investment made by incubators greater than the market price is exempt from tax. Startups registered under the Startup India scheme are exempt from taxes for three years.<\/p>\n\n\n\n

          In addition, angel investments are also exempt under the scheme. A tax holiday for the first three years or reaching a certain threshold limit means that the startup can use the revenues only for business development.<\/p>\n\n\n\n

          1. Clearance from the mobile app with a single-window<\/strong><\/li><\/ol>\n\n\n\n

            With Startup India’s mobile application, eligible companies can register themselves via a single form. Startup India includes a single form for startups to register themselves.<\/p>\n\n\n\n

            In addition, this app facilitates single-window clearances for business approvals, registrations, filing compliances, etc. This is the quickest and easiest way for anyone to start a business.<\/p>\n\n\n\n

            1. Patent Protection<\/strong><\/li><\/ol>\n\n\n\n

              If you have ever applied for a patent, you know how time-consuming it is, but several steps are taken under the scheme to protect valuable intellectual property. Among them is a fast-track examination of patent applications.<\/p>\n\n\n\n

              The effort is not limited to fast-track patent applications. Once a patent is filed, 80% of the total fee is refunded.<\/p>\n\n\n\n

              1. Government Procurement Norms Relaxed<\/strong><\/li><\/ol>\n\n\n\n

                Before Startup India, a company needed to have a lot of experience or a lot of turnovers to qualify for public procurements. Today, startups and experienced entrepreneurs will have equal opportunities to go for public procurements; regulations have been relaxed to make that easier for startups.<\/p>\n\n\n\n

                1. An Incubator Setup<\/strong><\/li><\/ol>\n\n\n\n

                  An incubator module forms part of the Startup India scheme. This module endorses the public-private partnership, providing the startup with the requisite knowledge and support. A total of 118 incubators power India’s startup ecosystem, helping the startup ecosystem.<\/p>\n\n\n\n

                  1. Networking Options<\/strong><\/li><\/ol>\n\n\n\n

                    In the scheme, startups can meet other startup stakeholders at a particular location and time. These meetings are called fests, and these fests are held every two years.<\/p>\n\n\n\n

                    This provides startups with a great opportunity not only to obtain funding but also to grow and develop by examining other startups. It also gives them a broader perspective on their day-to-day activities.<\/p>\n\n\n\n

                    1. Government Tenders<\/strong><\/li><\/ol>\n\n\n\n

                      A government project is usually large and has higher monetary incentives, however, it is fairly difficult to obtain, mainly because of the level of competition involved.<\/p>\n\n\n\n

                      In this scheme, startups are given incentives to receive government tenders; they are not required to have any prior experience to receive such tenders.<\/p>\n\n\n\n

                      1. Research and Innovation Benefits<\/strong><\/li><\/ol>\n\n\n\n

                        Lastly, Startup India also encourages entrepreneurship by establishing seven new research parks that will provide facilities for students and startups to conduct research and develop their products\/services.<\/p>\n\n\n\n

                        Start your own business now with Startup India. The benefits of starting your own business are numerous, with little compliance and a lot of opportunities. Take advantage of them at the earliest. This is the time to see your business idea grow, develop and implement.<\/strong><\/p>\n\n\n\n

                        The 7 Steps to a Successful Startup Registration in India:<\/strong><\/h3>\n\n\n\n
                        1. Incorporate your business first<\/strong><\/li><\/ol>\n\n\n\n

                          Your business must first be incorporated as a Private Limited Company, a Partnership or a Limited Liability Partnership. You need to follow all the normal procedures for the registration of any business, including filing the registration application and obtaining the Certificate of Incorporation\/Partnership.<\/p>\n\n\n\n

                          You can establish a Private Limited Company or a Limited Liability Partnership (LLP) by submitting your registration application to the Registrar of Companies (ROC) of your area. You can establish a Partnership Firm by submitting your registration application to the Registrar of Firms in your area. You must submit the required documents and fees with the registration application.<\/p>\n\n\n\n

                          1. Register with Startup India<\/strong><\/li><\/ol>\n\n\n\n

                            A startup business must be registered. The registration process is simple and can be completed online. Visit Startup India and click on the ‘Register’ button as shown below.<\/p>\n\n\n\n

                            Click the ‘Register’ button and enter your name, email address, mobile number, and password.<\/p>\n\n\n\n

                            Click on the ‘Submit’ button after entering the OTP that is sent to your email address and other details such as who you are, your startup’s name, stage, etc. Your Startup India profile will be created.<\/p>\n\n\n\n

                            When startups create their profiles on the website, they can apply for various accelerator, incubator\/mentorship programs and other challenges as well as gain access to resources like Learning and Development Programs, Government Schemes, State Policies for Startups, and pro bono services.<\/p>\n\n\n\n

                            1. DPIIT Recognition<\/strong><\/li><\/ol>\n\n\n\n

                              After creating a profile on Startup India, the next step is to apply for Department for Promotion of Industry and Internal Trade (DPIIT) recognition. As a result, startups can enjoy benefits such as access to high-quality intellectual property services and resources, relaxation of public procurement norms, self-certification under labour and environment laws, easy winding up of companies, access to Fund of Funds, tax exemption on investments over fair market value for three consecutive years.<\/p>\n\n\n\n

                              Getting DPIIT recognition is as simple as logging into your startup India account and clicking on the \u2018DPIIT Recognition for Startups\u2019 button under the \u2018Schemes and Policies\u2019 tab.<\/p>\n\n\n\n

                              You will be redirected to a new page after clicking the ‘Get Registered’ button. Scroll down this page and click on the ‘Click here for submitting your application for recognition as a Startup’ button.<\/strong><\/p>\n\n\n\n

                              1. Recognition Application<\/strong><\/li><\/ol>\n\n\n\n

                                Fill out the “Startup Recognition Form” by providing details such as the entity details, full address (office), authorized representative details, directors\/partners details, information required, startup activities, and self-certification. Click on the plus sign on the right-hand side of the form and enter each section.<\/p>\n\n\n\n

                                Click on the ‘Submit’ button after filling out all the sections of the ‘Startup Recognition Form’.<\/strong><\/p>\n\n\n\n

                                1. Documents for Registration<\/strong><\/li><\/ol>\n\n\n\n