Startup India: How To Register Your Startup In Just 6 Steps

Startup India – Launched on 16th January 2016, the Startup India Initiative has rolled out several programs with the objective of supporting entrepreneurs, building a robust startup ecosystem, and transforming India into a country of job creators instead of job seekers. These programs are managed by a dedicated Startup India Team, which reports to the Department for Industrial Policy and Promotion (DPIIT).

Table of Contents

Startup India Recognition

DPIIT-Recognised Startups are eligible for the following benefits:

Intellectual Property Rights (IPR) benefits
Relaxation in public procurements norms
Self-Certiﬁcation under Labour & Environment laws
Fund of Funds for Startups (FFS)
Faster exit for Startups

DPIIT-Recognised Startups may apply to IMB for the following benefits:

Section 80 IAC: Income Tax exemption for 3 out of 7 years

Startup India Hub

Learning and Development Programs – Step-by-step guide to starting a business in India
Government Schemes – Centralized repository of all Government schemes for the Startup Ecosystem Actors
State Startup Policies – Single point to access all notiﬁed Startup Policies by the respective State Governments
Pro Bono Services – Get free applications, cloud credits, legal and
banking support from our partners
Knowledge Bank – A quick walkthrough on all things Startup, including company registration, investor engagement, legal considerations etc.
Tools and Templates – A repository of sample templates for all legal & HR documents, investor decks, deeds, contracts etc.
Networking – Connect with people from the Startup Ecosystem on the portal
Idea Bank – Looking for an Idea for Your Startup? We’ve listed some problem statements which require innovative solutions
Programs & Initiatives – Apply for acceleration, mentorship programs & other challenges across the globe

Related Links

Beneﬁts of DPIIT Recognition

Intellectual Property Rights (IPR)

To promote awareness and adoption of IPRs by Startups and facilitate them in protecting and commercializing the IPRs, Startup India provides access to high-quality Intellectual Property services and resources, including:

Fast-tracking of Startup patent applications – The patent application of Startups is fast-tracked for examination and disposal. The process is much faster for recognised Startups.
Panel of facilitators to assist in IP applications – Facilitators are responsible for providing general advisory on diﬀerent IPRs, and information on protecting and promoting IPRs in other countries. Central Government bears the entire fees of the facilitators for any number of patents, trademark or designs, and Startups only bear the cost of the statuary fees payable.
Rebate on ﬁling of application: Startups are provided an 80% rebate in ﬁling of patents vis-a-vis other companies bringing down the cost from INR 8,000 to INR 1,600.
This helps them cut down on costs in their early years. 50% rebate is also provided in ﬁling of Trademarks vis-a-vis other companies decreasing the cost from
INR 10,000 to INR 5,000.

Relaxation in Public Procurement Norms

The government of India has authorized its Ministries, Departments and Public Sector Undertakings to relax norms in all public procurements. Startups are entitled to avail exemption on:

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Prior Turnover
Prior Experience
Earnest Money Deposit

Self-Certi cation under Labour & Environment Laws

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.
In respect of 3 Environment laws, units operating under 36 white category industries (as published on the website of Central Pollution Control Board) do not require clearance under 3 Environment related Acts for 3 years.

Faster Exit for Startups

Ministry of Corporate Aﬀairs 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.

Tax Exemption in Startup India

Startups incorporated on or after 1st April 2016 can apply for income tax exemption. The Inter-Ministerial Board validates the innovative nature of the business for granting Income Tax Beneﬁts and is constituted by representatives from DPIIT, DBT, and DST.

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Tax Exemption for 3 years

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 7 years since incorporation.
Startups incorporated on or after 1st April 2016 can apply for income tax exemption.

Exemption for the purpose of clause (viib) of sub-section (2) of section 56 of the Act

A DPIIT recognized Startup is eligible for exemption from the provisions of
section 56(2)(viib) of the Income Tax Act.
The Startup has to ﬁle a duly signed declaration in Form 2 to DPIIT {as per notiﬁcation G.S.R. 127 (E)} to claim the exemption from the provisions of Section 56(2)(viib) of the Income Tax Act

Fund of Funds for Startups

To provide equity funding support for the development and growth of innovation-driven enterprises, the Government has set aside a corpus fund of INR 10,000 crores 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.

The ﬂow of funds is Government > SIDBI > Venture Capitals > Startups

Now the employment generation is not conﬁned merely to Government services or factories, with job seekers becoming job creators.
We are proud of the hard work and innovative ideas of our youth!

Shri Piyush Goyal,
Hon’ble Minister of Commerce & Industry, Government of India

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Startup India Banner — How To Register Your Startup In Just 6 Steps | Startup India | Dpiit 7

Key Pillars of Support for Startups

Under the Startup India Initiative

Simplification and Handholding

Easier compliance, easier exit process for failed startups, legal support, fast-tracking of patent applications, and a website to reduce information asymmetry.

Funding & Incentives

Exemptions on Income Tax and Capital Gains Tax for eligible startups; a fund of funds to infuse more capital into the startup ecosystem and a credit guarantee scheme.

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Incubation & Industry-Academia Partnerships

Creation of numerous incubators and innovation labs, events, competitions and grants.

How to Register your Startup in just 7 Steps

The broad scope of Startup India’s programs is outlined in the Action Plan below.

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Step 1: Incorporate your Business

You must first incorporate your business as a Private Limited Company or a Partnership firm or a Limited Liability Partnership. You have to follow all the normal procedures for registration of any business like obtaining the Certificate of Incorporation/Partnership registration, PAN, and other required compliances.

Step 2: Register with Startup India

Then the business must be registered as a startup. The entire process is simple and online. All you need to do is log on to the Startup India website and fill up the form with details of your business. Next, enter the OTP which is sent to your e-mail, and other details like, startup as the type of user, name, and stage of the startup, etc. After entering these details, the Startup India profile is created.

Once, your profile is created on the website, startups can apply for various acceleration, incubator/mentorship programs, and other challenges on the website along with getting access to resources like Learning and Development Program, Government Schemes, State Polices for Startups, and pro-bono services.

Step 3: Get DPIIT Recognition

The next step after creating the profile on the Startup India Website is to avail Department for Promotion of Industry and Internal Trade (DPIIT) Recognition. This recognition helps the startups to avail benefits like access to high-quality intellectual property services and resources, relaxation in public procurement norms, self-certification under labour and environment laws, easy winding of company, access to Fund of Funds, tax exemption for 3 consecutive years, and tax exemption on investment above fair market value.

For getting DPIIT Recognition, click on the ‘Get Recognised’ button if you are a new user. If you are an existing user click on the ‘Dashboard button’ and then ‘DPIIT Recognition’.

Step 4: Recognition Application

The ‘Recognition Application Detail’ page opens. On this page click on ‘View Details’ under the Registration Details section. Fill up the ‘Startup Recognition Form’ and click on ‘Submit’.

Step 5: Documents for Registration

Incorporation/Registration Certificate of your startup
Details of the Directors
Proof of concept like pitch deck/website link/video (in case of a validation/ early traction/scaling stage startup)
Patent and trademark details (Optional)
PAN Number

Step 6: Recognition Number

That’s it! On applying you will immediately get a recognition number for your startup. The certificate of recognition will be issued after the examination of all your documents which is usually done in 2 days after submitting the details online.

However, be careful while uploading the documents. If on subsequent verification, it is found to be obtained that the required document is not uploaded/the wrong document uploaded or a forged document has been uploaded then you shall be liable to a fine of 50% of your paid-up capital of the startup with a minimum fine of Rs. 25,000.

Other Areas to Keep in Mind for Startup India

Patents, trademarks, and/or design registration
Funding
Self Certification Under Employment and Labour Laws
Tax Exemption

Patents, trademarks, and/or design registration

If you need a patent for your innovation or a trademark for your business, you can easily approach any from the list of facilitators issued by the government. You will need to bear only the statutory fees thus getting an 80% reduction in fees.

Funding

One of the key challenges faced by many startups has been accessing finance. Due to lack of experience, security or existing cash flows, entrepreneurs fail to attract investors. Besides, the high-risk nature of startups, as a significant percentage fail to take off, puts off many investors.

In order to provide funding support, the Government has set up a fund with an initial corpus of INR 2,500 crore and a total corpus of INR 10,000 crore over a period of 4 years (i.e. INR 2,500 crore per year). The Fund is in the nature of Fund of Funds, which means that it will not invest directly into Startups, but shall participate in the capital of SEBI registered Venture Funds.

Self Certification Under Employment and Labour Laws

Startups can self-certify under labour laws and environmental laws so that their compliance costs are reduced. Self-certification is provided to reduce regulatory burden thereby allowing them to focus on their core business. Startups are allowed to self-certify their compliances under six labour laws and three environment laws for a period of 3 to 5 years from the date of incorporation.

Units operating under 36 white category industries as published on the website of the Central Pollution Control Board do not require clearance under 3 environment-related Acts for 3 years.

Tax Exemption

Startups are exempted from income tax for 3 years. But to avail these benefits, they must be certified by the Inter-Ministerial Board (IMB). The Startups incorporated on or after 1st April 2016 can apply for the income tax exemption.

Documents Which Have Been Waived Off for Startup India

Startup India has changed the procedure of registration since its inception. It has exempted most of the previous requirements now. Many documents which were required to be filed previously are waived off. The list of documents that are not required to be filed at the time of the registration are-

Letter of Recommendations
Letter of funding
Sanction Letters
Udyog Aadhar
MSME Certificate
GST Certificate

Direct Links

Homepage (startupindia.gov.in)

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