Startup India

Government Issued Documents

Documents Required

Startup India Recognition

Startup India is an Indian Government initiative that is intended to build a strong eco-system for nurturing innovation and startups in the country to drive sustainable economic growth and generate large scale employment opportunities. Through this initiative, the government aims to empower Startups to grow through innovation and design.

The objectives of the Startup India Movement are outlined below. The action plan envisages supporting the startups and more:

Enhanced infrastructure, including incubation centres
IPR facilitation, including easier patent filing
The better regulatory environment, including the tax benefits, easier compliance, improved setting up of a company, fastest mechanism and more.
A goal to increase the funding opportunities
Provide a vast networking database for the entrepreneurs and other stakeholders in the startup ecosystem.

Eligibility Criteria

The startup must meet the following eligibility criteria to avail the DPIIT Certificate of Recognition:

Period of Existence of Entity: The Period of existence and operations of the company should not exceed 10 years from the date of formation
Type of Entity: The DPIIT Certificate of Recognition is provided for the company which is incorporated as a Private Limited Company, a Limited Liability Partnership (LLP) or a Registered Partnership Firm.
Annual Turnover: To get the DPIIT Certificate of Recognition, The firm should have an annual turnover of Rs. 100 crore for any of the fiscal years since its federation
Original Entity: To avail the DPIIT Certificate of Recognition, the company should not have been incorporated by splitting up or recreating an already existing entity.
Innovative & Scalable Entity: The entity should be working towards development or improvement of a product, process or service.
The entity should have a scalable business model with high potential for the creation of wealth and employment. The firm should have the potential to generate employment or create wealth.

Procedure to get DPIIT Certificate

The entity should follow the below-mentioned simple steps to get the DPIIT certificate of recognition.

Incorporation of the Business

As stated above, the entity must first incorporate the business as a Private Limited Company or a Partnership firm or a Limited Liability Partnership (LLP).

Get in touch with Digi Hunter to register your company.

Registering Business with the Startup India Scheme

The business needs to be registered with the Startup India Scheme to get the DPIIT certificate of recognition.

Get the Startup Recognition Number

The DPIIT Certificate of Recognition for Startups will be issued after examination of the application and documents submitted.

Once the ministry approves the application and provides the unique startup recognition number, the startup can be registered with tax benefits.

Benefits for DPIIT Recognized Startups

Self Certification

After obtaining the DPIIT Certificate of Recognition for Startups, the entity will be allowed to self-certify compliance under 3 Environmental Laws and 6 Labour Laws.

Start-Up Patent Application

The DPIIT recognized startups are required to pay only 80% of the fees on Patents, trademark, copyrights and design, and the fast-tracking of a patent application will be available for startups.

Easier Public Procurement Norms

The DPIIT recognized startups will get an opportunity to list the product on Government e-Marketplace.
DPIIT recognized startups are exempted from submitting Earnest Money Deposit
Exemption from Prior Experience/Turnover is provided for Start-ups in all Central Government ministries and departments.

Easy winding up of Company

According to the Insolvency and Bankruptcy Code, 2016, the company can be wound up within 90 days of applying for insolvency

Funds of Funds

The startups will be eligible for Rs.10000 crore funds of funds from the Alternative Investment Funds.

Credit Guarantee fund

The startups can avail Rs.2000 crore Credit Guarantee fund through the National Credit Guarantee Trust Company or SIDBI over 4 years

Tax Exemptions

After obtaining the Certificate of Recognition, the startup can apply for Tax exemption under section 80 IAC of the Income Tax Act.
The DPIIT recognized startups can apply for Angel Tax Exemption.
After obtaining the clearance for Tax exemption, the DPIIT recognized startups are exempted from income tax for 3 consecutive fiscal years out of its first ten years since formation.

Know more about the Startup Tax Exemption under Startup India Initiative

FAQ's

1. Who is eligible for Startup India?

To register with Startup India, an entity must meet specific criteria.

Applicants must be Indian citizens aged 18 or older.
It is recommended that the date of incorporation of the company be at least ten years old.
The Company should have been incorporated as a Partnership Firm, Private Limited Company, or a Limited Liability Partnership (LLP)
A company’s annual turnover should not exceed Rs.100 crore in any financial year since incorporation.
The Company or Entity should have been formed initially by the promoters and not by splitting up or reconstructing an existing business.
The startup should have a plan for developing or improving a product, process, or service and have a scalable business model with a high potential for creating wealth & employment.
Companies working towards developing a new product or service can avail of benefits under the Startup-is India policy.

2. Is Startup India a scheme?

Startup India is a vital government scheme launched on 16th January 2016 to provide financial assistance and mentorship to entrepreneurs. Additionally, it provides entrepreneurs with a platform for networking with industry experts, investors, and other stakeholders. The scheme also encourages research, development, and technology transfer in the country. This scheme helps create more jobs in the country and boost economic growth.

3. Does the government give funds to startups?

The easy availability of financing is a critical issue for entrepreneurs looking to expand their Startups. Due to a lack of funding, many business concepts stay on the ground. To address this issue, the Indian government has established a few Schemes through which the government provides financial aid to entrepreneurs. Startups can use these funds for research and development, marketing, and other activities to help them grow their business.

4. Can a One Person Company get Startup India Recognition?

As One Person Company is a form of a company it can be recognized as a Startup.

5. How many days are required to obtain the Startup India Recognition Certificate?

It requires around 7-10 working days , the government officers check all the information and the documents that are provided.

Related Business Registrations

In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.