What did the Government envision with the Startup Registration in India?

  • October 29, 2022
  • Dushyant Sharma
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Startup India is a flagship program by the Union Government of India. This initiative intends to build a strong ecosystem for nurturing innovation in the country. Startup India will drive sustainable economic growth in the country. It will also generate large-scale employment opportunities. The Government, through this initiative, aims to empower Startups to grow through innovation and design. This will be achieved by the Startup Registration portal in India.

To meet the initiative's objectives, the Government of India is announcing the Startup Action Plan. It will address all aspects of the Startup ecosystem. With this Action Plan, the Government hopes to accelerate the spreading of the Startup movement in India with the following objectives in mind:

  • From the digital and technology sector to a wide array of sectors, including agriculture, manufacturing, social sector, healthcare, education, etc.
  • From existing Tier 1 cities to Tier 2 and Tier 3 cities, including semi-urban and rural areas.


Startup Action Plan

The Action Plan is divided across the following areas:

  • Simplification and Handholding
  • Funding Support and Incentives
  • Industry-Academia Partnership and Incubation


Compliance Regime of the Startup Registration Action Plan

To reduce the regulatory burden on Startups, the Union Government, with its newly formed compliance regime exclusively for Startups, intends the Startups to focus on their core business and keep compliance costs low.


Why need a Startup Registration Compliance regime?

Regulatory guidelines requiring compliance with various labour as well as environmental laws are time consuming and difficult. Often, new and small firms are unaware of the nuances of the issues. Therefore, they can be subjected to intrusive action by regulatory agencies. So, to make compliance for Startups friendly and flexible, the Government has introduced simplifications in the regulatory regime.


How did the Government made compliance easier for Startup Registration?

Accordingly, the Government has made conducting inspections more meaningful and simple. Startups will be allowed to self-certify compliance through the Startup mobile app with 9 labour and environment laws referred to in the following points. These are some of the benefits of a Startup India certificate.

In the case of labour laws, no inspections will be conducted for 3 years. Startups may be inspected on receipt of a credible complaint of violation, filed in writing by the Startup applicant. The complaint must be approved by the inspecting officer at least one level senior.

In the case of environmental laws, Startups which fall under the WHITE CATEGORY as defined by the Central Pollution Control Board would be able to self-certify compliance. Only random checks can be carried out in such cases.

Laws on which the compliance restrictions have diluted:

Labour Laws

  • The Building and Other Constructions Workers’ (Regulation of Employment & Conditions of Service) Act of 1996
  • The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act of 1979
  • The Payment of Gratuity Act of 1972
  • The Contract Labour (Regulation and Abolition) Act of 1970
  • The Employees’ Provident Funds and Miscellaneous Provisions Act of 1952
  • The Employees’ State Insurance Act of 1948

Environmental Laws

  • The Water (Prevention & Control of Pollution) Act of 1974
  • The Water (Prevention & Control of Pollution) Cess (Amendment) Act of 2003
  • The Air (Prevention & Control of Pollution) Act of 1981


Startup India Hub Initiative

The Government proposed the Startup Hub to create a single point of contact for the entire Startup ecosystem and enable knowledge exchange and access to funding.


Why do many Startups not reach their full potential in India?

Youth today have the conviction to venture out on their own. A conducive ecosystem can let them watch their ideas come to life. Also, in today’s time, we have more Startups and entrepreneurship than ever. Therefore, the movement is at the cusp of a revolution. However, many Startups do not reach their full potential due to the unavailability of guidance and access.

Therefore, the Government of India has decided to take various measures to improve the ease of doing business. It is also building an exciting and enabling environment for these Startups with the launch of the “Startup India” movement. Therefore, the “Startup India Hub” will be a key stakeholder in this vibrant ecosystem.


How will Startup India Hub help in this regard?

Startup India Hub will commit to the following:


Provision of various Collaborations with the Startups

The Startups will work in a hub and spoke model and collaborate with the following:

  • Central & State governments
  • Indian and Foreign VCs
  • Angel Networks
  • Banks
  • Incubators
  • Legal Partners
  • Consultants
  • Universities
  • R&D Institutions


Assistance Provision to the Startups

The Startup Hub will assist Startups through their lifecycle. They will focus on a specific aspect of obtaining the following:

  • Obtaining Finance
  • Feasibility Testing
  • Business Structuring Advisory
  • Enhancement of Marketing Skills
  • Technology Commercialization
  • Management Evaluation


Provision of Mentorship to the Startups

The Hub will organize mentorship programs in collaboration with the following institutions:

  • Government Organizations
  • Incubation Centers
  • Educational Institutions
  • Private Organizations that aspire to foster innovation


To the young Indians who dare to enter an environment of risk, the Startup India Hub will be their mentor and guide to hold their hand and walk with them through this journey.

To know more about the startup registration process and the startup registration eligibility, connect with the Incorporation experts at Registrationwala. You can also learn how to register your startup in India with our experts.

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Dushyant Sharma
Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.

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