What advantages come with the registration of a startup in India?

  • April 19, 2022
  • Dushyant Sharma
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More and more startups are emerging in India over the years. Government of India has taken various initiatives like make in India which is motivating more and more entrepreneurs to start their own business. Earlier the procedure of company registration was quite cumbersome and time-consuming thus, most of the startups were unregistered in India. But now the process of startup registrations has become easier and less time-consuming. The multiple benefits of company registration for startups are as follows-

1. Simpler incorporation process-  In order to motivate startups a mobile app has been launched by the government of India and a website for easy registration for startups. The interested person is just required to fill up a simple form on the website and upload certain documents. The entire process is facilitated completely online.

2. Professionalism- Generally people prefer to associate with the registered company rather than the unregistered company. The registered company sound more professional and is able to attract more people to form associations. Further, it establishes the company as a professional in the market.

3. Reduced cost of IPR- For the startup government provides the list of lists of facilitators required to pay the statuary fees. The professional fees will be borne by the government and the startup will bear only the statutory fees. Thus startups will enjoy the huge benefit of 80% reduction in the cost of filing patents.

4. Getting easy access to funds- In order to provide funds to the startups as venture capital a 10,000 crore rupees fund is set-up by the government to provide funds to the startups as venture capital. Moreover, the government is proving guarantee to lenders like banks and other financial institutions to motivate them for providing venture capital.

5. To participate in tender processes- Only the registered startups are empowered to apply for both government and commercial tenders. All tenders have on their top of the list the requirement to be an incorporated company. Also, the startups are exempted from the previous experience or turnover criteria applicable to normal companies.

6. Tax holiday for 3 years-  If the startups manage to get certification from Inter-Ministerial Board (IMB) then they can enjoy tax exemption for 3 years.

7. Liability protection-  After registration, the company becomes a separate legal entity thus the liability of the members are limited to their share only. This means that if the company incurs debt or is sued; its members are not required to satisfy the claims with their personal assets. By registering your business, your business and personal assets are separated from each other.

Ease in compliances- Various compliances have been simplified for startups to save time and money. Startups shall be allowed to self-certify compliance (through the Startup mobile app) with 9 labor and 3 environment laws (for list of white industries which are eligible under self-compliance.

For more information about Startups Registration visit Registrationwala.com register your startups.


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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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