Startup Registration in India
What is Startup India Registration?
Startup Registration in India refers to registration of a business entity, be it a company, a sole proprietorship, an LLP, a partnership firm, under the flagship of startup India initiative.
By registering your business in India as a startup, you will get several benefits of startup India registration. these benefits range from getting access to government schemes to exclusive consideration when it comes to government projects.
We have come so far in terms of the sheer number of entrepreneurs that we don’t remember much before the introduction of startup India. Through the emergence of start-ups, there are opportunities of revenue and growth in multiple sectors. Right now, startup registration in India has paved the way for more innovation, more revenue and more hope for the future.
When you start a company that is just a budding venture, it is referred to as a startup. When you start a company in India, you take your first steps towards the world of business. A start-up doesn’t have access to a lot of finance. However, it has all the necessary ingredients of a recipe that can create a successful business:
And based on these three factors, it can grow. However, the government has noted the potential of such budding companies. Therefore, you can now register a startup in India under the many schemes of the government.
Why you should register a startup in India?
Registering your startup in India makes your business receptive to the many benefits of startup registration. Some of them include the following points.
- The startup registration process is quite intuitive and simple: Unlike the business registration process in India, where the road is long and the roadblocks are many, the startup registration process is a simple one. It doesn’t involve many steps and all you need to do is to take your innovative approach towards your business take the reins of the procedure. This intuitive registration of a startup makes it optimal for your business to get much-needed assistance when you are just starting up.
- When you register your startup, India reduces your IP registration fees: Once you register a startup company in India, the fees of certain IPR registration like patent registration and trademark registration are reduced. Conventionally, that means a reduction of the price of intellectual property registration services like copyright, design, patent or trademark registration by half. It will help you not only start your business but protect your business identity after you are done registering a company in India.
- Access to government funds: Government funds are readily available for company that have been registered as startups. It is because, in the eyes of the government, every startup incorporated is one with innovative business and customer solutions standing at the forefront. And thus, the government of India has no issues putting money behind such registrations in India.
- Tax exemptions for the first three years: After a startup is registered for the first three years, they are exempted to pay any income taxes. It is beneficial for those entrepreneurs choosing registration in India for the purpose to gain some support from the government when their business is just starting up. This form of incorporation of a company is especially beneficial for those who are yet to find confidence in these business entities.
- Closing a startup firm is also easy: Startup Company registration in India exists for budding businesses that have no idea whether they will succeed or fail in future. And it is said that over 90% of startups fail in their business ventures. Therefore, If you want to close a startup, the process is pretty simple.
- Access to more venture capitalists: Because registration of startup in India helps an entrepreneur with several positive aspects including fewer taxes, and easy exit, the venture capitalists aren’t apprehensive about investing in a startup – especially if the business idea is an innovative one.
These benefits when you register with startup India are a sure way to get that initial push you need to grow your business. Furthermore, the perks of registration under startup India that we have explained to you here are just the tip of the ice-berg. There are many other advantages to be had once you obtain the startup certificate registration. But to know about them, you first have to find out whether you are eligible for registration for a startup in India.
What are the different types of entities that can obtain startup business registration?
The government of India has not put any boundaries on which type of entities can register as a startup:
1. Private Limited Companies: Private Limited Companies are the most popular business entities in India – suitable for all types of enterprise. Since most entrepreneurs incline to get their business registered as a company in India, the government allows them to start a startup company in India.
2. Limited Liability Partnerships: Many wonder about the answer to the question – how to register LLP in startup India. The answer is – same as how you would register your company as a startup. Startup registration process has less to do with the business infrastructure and more to do with answering a certain set of questions.
3. One Person Company: In rare cases, One Person Companies can also be registered as a startup in India. However, such business entities must be extraordinarily innovative.
4. Partnership firm: A partnership firm is a business entity incorporated under the Partnership Act, 1932. If your partnership firm has an innovative business, you can obtain startup firm registration in India.
5. Producer Company: Producer company can register their business as Indian startups. Since agricultural sector is a major contributor to our GDP, the government grants startup registration to a producer company without much hassle.
6. Public Limited Company: Public limited company can also be counted as the candidate for startup India initiative, provided they get registered in their early days.
7. Nidhi Company: Nidhi Company also have the permit to obtain the startup registration certificate in India.
Startup India registration for a proprietorship is not possible because the entity is not registered under any government regulation. Thus, if you have a sole proprietorship firm that you want to incorporate as a startup, contact us to convert it into a One Person Company.
Eligibility Criteria for Startup Registration
Following points constitute of the Startup India registration eligibility criteria:
- You should be a new startup company: Startup company formation is not possible for old business entities. The applicant business entity must be registered or incorporated in India for less than 7 years. If you business is older, you will not be considered as a startup as far as the government of India is concerned.
- Your current turnover shouldn’t exceed INR 25 Crore: The current annual turnover of the applicant’s business entity should not be more than INR 25 Crore. If you the annual turnover of your company is more than this figure, than you are considered far beyond a startup and thus are not considered suitable for its perks.
- Your business should be an innovative one: The objective of the applicant’s business entity should be aimed towards development, innovation, deployment, commercialisation of new products, services that are driven by new technology or IP. Too many companies attempt to get their startups registered in India without a second thought to innovation. That’s wrong, wastes the time of the inter-ministerial board setup, and can ruin your chances to get startup company registration in India.
- You must first obtain the certificate from the inter-ministerial board: The applicant should have obtained certification from Inter-Ministerial Board Setup.
Documents Required for Startup Registration in India
Following are the documents required for startup India registration:
- PAN Card: PAN card of the Permanent Account Number is a card that connects an individual to their financial data. Therefore, it is one of the most important documents for startup business registration.
- ID Proof: All the directors of the company, partnership of an LLP or Partnership firms must provide their identity proof.
- Address proof of the directors of the company: Address Proof in the name of director (Any utility bill i.e., mobile bill/water bill/ electricity bill, or bank statement which should not be older than two months)
- Photo IDs of the directors/partners: 4 Passport Size Photographs. Make sure that none of those photographs are signed.
- Address proof of Registered office: Provide a rent agreement copy if the registered office is a rented space. Or, provide a sales agreement copy if you own the space that acts as a registered office.
- Any utility bills to further reinforce the address proof of your registered office: Any utility Bill (i.e., mobile bill/water bill/ electricity bill) of the registered office
- Director details: Minimum 2 Directors details for a Pvt Ltd Company is required. You must make sure that the details are thorough.
- Shareholder Details of the company: Provide details of at least two Shareholders of the Pvt. Ltd. Company or Limited Liability Partnership.
- Details of a One Person Company: For a One Person company. Minimum 1 Shareholder & 1 Nominee is a requirement. Therefore, you must present the details of the same.
- MSME certificate: For MSME startup registration, a copy of the MSME certificate – now known as the Udyog Aadhar Certificate is also a requirement.
These documents will put you on track of the company startup process.
Process for Startup Company Registration in India
The procedure for Startup registration in India is as follows:
- Incorporate your business: To be recognized as a startup, your business first needs a structure. Therefore, your first order or business must be to incorporate your business in India as soon as possible.
- Gather the required documents for startup registration: Furnish all the requirements in a digital format because the startup registration procedure is online.
- Visit the website and create your login ID: Go to startup India website and create an ID for your company, partnership, or Limited Liability Partnership.
- Answer the four major questions about your startup:
- Problem that your startup is trying to solve? In this question, you have to clearly state about the problem your company is trying to deal with, you have to make sure that every detail you provide should exist within the realm of possibilities.
- What is your solution to solving that problem? Provide all the possible solutions your startup has come up with to deal with the issues.
- How is the solution you’re providing is unique? What separates your solutions from the rest. Be as unique as possible. If your answer has integrity, it will be accepted even if there is a
- How your business is going to generate revenue: Provide specifications about how your startup is going to generate revenue.
- Apply for startup India Certificate
- Get startup Registration certificate or the authorization letter for startup India.
The procedure to start a startup in India, even though simplistic, need the assistance of the right business registration experts in India. And for that, Registrationwala is here to deliver.
Our Assistance with new startup registration in India
We, at Registrationwala provide end to end solutions to establish your startup in India. Our services include:
· Application filing
· Content development for answering startup questions
· Company incorporation
· Following up with the startup department.
Do you want your company to be the part of Startup India initiative? Registrationwala can provide you a way to register your startup easily and in a cost-effective manner. While there are no governmental of registering a startup, there are professional costs. However, we assure you that our startup registration cost affordable.
Therefore, it is time that you stop delaying your dreams and start realizing them.
Frequently Asked Question about Startup Registration (FAQs about Startup Registration)
Q1. What is a Startup Company in India?
A Startup company in India is a business entity that has just started its business enterprise.
Q2. What is Startup India Registration?
Startup India registration is the process to incorporate a business entity in the Startup India initiative.
Q3. Where to register startup in India?
For startup registration online, you have to go to the official portal for the registration of startup.
Q4. What are the steps to register a startup in India?
The startup registration procedure is as follows:
-Incorporate your business
-Furnish the documents
-Go to the official portal
-Fill out the startup registration form
-Give answers to the four questions
-Get the startup registration certificate
Q5. Who can register in Startup India?
Following business entities can register in startup India:
-Private limited company
-Public Limited Company
-One Person Company
-Limited Liability Partnership
Q6. Which registration is best for startup?
Private limited companies are often considered the best candidates for startup registration in India.
Q7. What is the validity for startup India certificate?
Startup India certificate is valid until:
Seven years, or Once your annual turnover has crossed 25 Crore rupees.
Q8. Can there be registration under startup India for proprietorship?
No. the Sole Proprietorship Firm cannot register under startup India.
Q9. How much does it cost to register a startup in India?
Startup registration cost varies from company to company. However, Registrationwala delivers optimal startup registration services at just INR 6,999/-