Startup Registration in India

What is Startup India Registration? Startup Registration in India refers to registering a business entity, be it a company, a sole proprietorship, an LLP, or a partnership firm, under the flagship of the Startup India initiative. Registering your business in India as a Startup will benefit you from Startup India registration. These benefits range from access to government schemes to exclusive consideration of 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 Startups, multiple sectors have revenue and growth opportunities. Right now, Startup registration in India has paved the way for more innovation, revenue, and hope for the future.

 

What does it take to become a Startup in India?

When you start a company that is just a budding venture, it is called a Startup. When you start a company in India, you take your first steps towards the business world. A Startup 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:

• Dedication
• Innovation
• Courage

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 should you register for 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. 

1.Startup Registration 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 simple. It doesn't involve many steps; all you need to do is take your innovative approach towards your business and 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.

2.Reduced IPR registration fee for Startups

Once you register a Startup company in India, certain IPR registration fees like patent 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.

3.Startups have access to various Government Funds

Government funds are readily available for a company registered as a Startup. 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.

4.Tax Exemptions for the First Three Years

After a Startup is registered for the first three years, they are exempted from paying any income taxes. It is beneficial for those entrepreneurs choosing registration in India to gain some support from the government when their business is just starting. This form of incorporation of a company is especially beneficial for those who are yet to find confidence in these business entities.  

5.Closing a Startup 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, the process is pretty simple if you want to close a Startup.

6.Access to more Venture Capitalists

Because registration of a Startup in India helps an entrepreneur with several positive aspects, including fewer taxes and easy exit, venture capitalists aren't apprehensive about investing in a Startup – especially if the business idea is innovative.

When you register with Startup India, these benefits are a sure way to get the initial push you need to grow your business. Furthermore, the registration perks under Startup India explained here are just the tip of the iceberg. There are many other advantages 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. 

 

Types of Businesses that can obtain Startup Registration in India

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 India's most popular business entities – 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 – of how to register LLP in Startup India. The answer is – the same as how you would register your company as a Startup. The startup registration process has less to do with the business infrastructure and more with answering certain questions.

3.One-Person Company

In rare cases, One Person Companies can also be registered as Startups 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 of 1932. If your Partnership Firm has an innovative business, you can obtain Startup Firm Registration in India.

5.Producer Company

Producer Companies can register their business as Indian Startups. Since the agricultural sector is a major contributor to our GDP, the government grants Startup registration to a producer company without hassle.

6.Public Limited Company

Public Limited Companies can also be counted as candidates for the Startup India initiative, provided they get registered in their early days.

7.Nidhi Company

Nidhi Company is also permitted to obtain the Startup registration certificate in India.

Startup India registration for a proprietorship is impossible because the entity is not registered under 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

The following points constitute the Startup India registration eligibility criteria:

 

Applicant must be a new Startup

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 your business is older, you will not be considered a Startup as far as the government of India is concerned.

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 your company's Annual Turnover exceeds this figure, you are considered far beyond a Startup and thus are not considered suitable for its perks.  

Business should be an Innovative one

The objective of the applicant's business entity should be aimed towards the development, innovation, deployment, and commercialization of new products and 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. It wastes the time of the inter-ministerial board set up and can ruin your chances of getting Startup company registration in India.

Possess 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

The following are the documents required for Startup India registration:

• PAN Card: PAN card, 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 company directors, a 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 the 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 is signed.
• Address Proof of Registered Office: Provide a rent agreement copy if the registered office is 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: A minimum of 2 Directors details for a Pvt Ltd Company is required. It would help if you made sure that the details were 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, a minimum of 1 Shareholder & 1 Nominee is a requirement. Therefore, you must present the details of the same.
• MSME certificate: A copy of the MSME certificate is also required for MSME Startup registration, now known as the Udyog Aadhar Certificate. 

These documents will put you on track with the company Startup process. 

 

Process for Startup Company Registration in India

The procedure for Startup registration in India is as follows:

1. Incorporate your Business: To be recognized as a Startup, your business needs a structure. Therefore, your first order or business must be incorporated in India immediately.
2. Gather the required documents for Startup Registration: Furnish all the requirements digitally because the Startup Registration procedure is online.
3. Visit the website and create your login ID: Go to the Startup India website and create an ID for your company, partnership, or Limited Liability Partnership.
4. Answer the four major questions about your Startup:
   • What problem that your Startup is trying to solve? In this question, you have to state the problem your company is trying to deal with and 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 devised to address the issues.
   • How is the solution you're providing 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 will generate revenue: Provide specifications about how your Startup will generate revenue.
5. Apply for Startup India Certificate and get the authorization letter for Startup India.
6. The procedure to register my Startup in India, even though simplistic, needs the assistance of the right business registration experts in India. And for that, Registrationwala is here to deliver. We can also apply for Trademark Registration for your Startup, which will aid your brand 

 

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:

1. Application filing
2. Content development for answering Startup questions
3. Company incorporation
4. Following up with the Startup Department

Do you want your company to be part of the Startup India initiative? Registrationwala can allow you to register your Startup easily and cost-effectively. While there are no governmental to registering a Startup, there are professional costs. However, we assure you that our Startup registration costs are affordable.

Therefore, it is time that you stop delaying your dreams and start realizing them.

 

FAQs about Startup Registration

Q1. What is a Startup Company in India?

A. A Startup company in India is a business entity that has just started its business enterprise.

Q2. What is Startup India Registration?

A. Startup India registration is the process to incorporate a business entity in the Startup India initiative.

Q3. Where to register Startup in India?

A. For startup registration online, you have to go to the official portal for registration of Startup.

Q4. What are the steps to register a startup in India?

A. 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?

A. Following business entities can register in Startup India:

• Private limited company
• Public Limited Company
• One Person Company
• Limited Liability Partnership
• Partnership Firm
• Producer Company
• Nidhi Company

Q6. Which registration is best for a Startup?

A. Private limited companies are often considered the best candidates for startup registration in India.

Q7. What is the validity for startup India certificate?

A. 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?

A. No, the Sole Proprietorship Firm cannot register under Startup India.

Q9. How much does it cost to register a startup in India?

A. Startup Registration cost varies from company to company. However, Registrationwala delivers optimal startup registration services at just INR 6,999/-.