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DPIIT's full form is Department for Promotion of Industry and Internal Trade. Under the Startup India Initiative, the eligible companies will be recognised by the DPIIT as a startup, it is required to access tax benefits and easier compliance.
Also, after being recognised by DIPP, you can avail of benefits related to Intellectual Property Rights such as IPR fast-tracking and do not require another license from the Inter-Ministerial Board. The startups which meet the eligibility criteria set under the Startup India DPIIT registration notification can only apply for recognition under this program.
The benefits of receiving a DPIIT registration certificate are as follows:
Self-certification: The private limited company is normally bound by labour and employment laws. By having a DPIIT Certificate of Recognition for Startups, the entity can self-certify compliance under 3 Environmental Laws and 6 Labour Laws.
Registration of Intellectual Property: For large entities, the government fee for trademark application is Rs. 9000. If you have a registered DPIIT certificate, then the price becomes half. Also, in the case of patent registration, the application fees may vary from Rs. 8000 to Rs. 11000. But for registered entities, the fees charged are only Rs. 1800, and around 80% of fees will be provided as a rebate.
Income Tax Exemption: A registered startup can avail of the benefits of income tax for three consecutive years out of the first 10 years from the date of business registration. The purpose behind this is that the business can re-invest the amount again in the business.
Simplified Public Procurement: On a trial basis, a DPIIT can bid for government contacts with lower eligibility criteria. The public procurement process is a process in which governments and state-owned enterprises purchase goods and services from the private sector. Usually, the eligibility criteria for government contracts are high but DPIIT-registered entities can participate in the bidding process.
Easier Winding Process: As per the Insolvency and Bankruptcy Code, 2016 the company can wind up within the time period of 90 days of applying for insolvency.
Exemption Under Section 54(GB): Section 54(GB) is related to tax on long-term capital gains that an individual receives on the sale of residential property. Those individuals who invested this amount in a DPIIT startup registration can avail the tax benefits.
Right now, India is at an immensely attractive economic status. Traders, promoters, manufacturers and service providers from neighbouring countries are just itching for a chance to getting into Indian market. On the other hand, the Indian market is now flooding with tenders and opportunities that these neighbouring businesses are ready to bid on.
In order to cater to these foreign bidders, DPIIT or Department for Promotion of Industry and Internal Trade has provided the registration of bidders from countries sharing land border with India.
Bidders of those countries that share border with India, and who come under any of the following categories, can apply for DPIIT registration:
To get DPIIT registration, one has to file the application for DPIIT registration in the prescribed format and submit it to the Department of Promotion of Industry and Internal Trade. The documents one is required to submit to the body to get the registration are as follows:\
In the next section, let’s discuss each and every document stated above in detail:
In the Covering Letter, you’ll provide:
Draft a letter of authority in the favour of the one who have authorized to be the signatory. As a bidder, the letter of authority will be drafted in your favour.
The details of the bidder are to be provided in the prescribed format of Appendix A. It will contain the following:
Following are the details that the document concerned with manufacturers. service providers or contractors, all of which are NOT bidders have to fill
Following are the details of the bidder needed for security clearance. Ist has to be filled in the format prescribed:
Alongside the bidder details, the security clearance information document should also contain information of the beneficial ownership of the entity.
The details needed in this case for security clearance are as follows:
Alongside the manufacturer/service provider/contractor details, the security clearance information document should also contain information of the beneficial ownership of the entity.
It’s the self declaration of whether criminal charges have been filed against the applicant or not.
DPIIT registration for foreign companies and persons is a a way for the government to extend its hand of friendship and trade to foreign nations. However, the registration is still quite restrictive and involves a lot of nuanced documents. So, if you’re looking for such business registration and other of similar vein as RNI registration or BEE registration, reach out to our experts.
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.