Companies in their first stages of operations are termed as ‘Start Ups’. They are newly formed businesses having a problem-solving mindset and are run by one or more people. Generally, startups are formed when the founders identify some flaws in the current society and intend to address the problem by developing a product/service. What distinguishes a startup from other businesses, though, is the way a startup goes about doing that. Regular companies duplicate what’s been done before whereas a startup aims to create an entirely new or modified version of services/products.
In this article, we’ll discuss how you can register your StartUp in India and what are the necessary documents required for the same.
Startup Registration Procedure
Step 1: Incorporate your Business
You must first incorporate your business by following all the normal procedures for registration of any business like submitting the registration application and obtaining the Certificate of Incorporation/Partnership registration. Company incorporation offers many benefits. It shields your business from personal liability and protects from other risks and losses, providing greater stability, generating more customer attraction, and providing legal status to the company.
You should be clear about the type of your startup before choosing an appropriate constitution. It is also necessary to be aware of the technicalities, benefits, pros & cons of each type prior to registering to incorporate your entity under a specific business type.
You should thoroughly check the following important documents related to new company registration before submitting:
➭ DIN of all those directors of a proposed company.
➭ DSC – Digital Signature Certificate
➭ Original copy of a formal letter issued by ROC regarding availability of Company name.
➭ Form-1 for incorporation of a company.
➭ Form-18 for the situation or address of the proposed company.
➭ Form-32 for particulars of proposed directors, managers, and secretaries.
After submitting the major forms aforementioned, once the application has been approved by MCA, you will receive a confirmation email regarding the application for incorporation.
Step 2: Get Into Startup India Program
The next step in the startup registration process is to register your company as a new venture. Startup India was launched on 16 January 2016. Under the leadership of our prime minister, Mr. Narendra Modi, the Indian government has initiated and promoted it. The overall motive of Startup India is to provide a pathway for products and services to make them resourceful and innovative. With this scheme, a considerable amount of growth is anticipated in the employment rate of India.
The Startup India Scheme has made registering a business simple, and you can do it all online from the comfort of your own home. Logging into the Startup India website and completing the startup registration form is all that is necessary.
Step 3: DPIIT Recognition
To access tax benefits and easier compliance, companies have to be recognized as Startups by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Startup India initiative. Startups recognized by DIPP can avail of Intellectual property Rights (IPR) related benefits such as IPR fast-tracking and more without requiring any other license from the Inter-Ministerial Board.
As per the StartUp India initiative, your company must meet the following criteria to be considered eligible for DPIIT startup recognition.
➭ Company Age (Period of existence and operations) should not be exceeding 10 years from the Date of Incorporation.
➭ The company must be incorporated as a Private Limited Company, a Registered Partnership Firm, or a Limited Liability Partnership. Although, OPCs are also eligible to avail of benefits under the Startup India initiative.
➭ The annual Turnover should not exceed Rs. 100 crores for any of the financial years since its Incorporation.
➭ An entity should not have been formed by splitting up or reconstructing an already existing business.
For getting DPIIT Recognition, you should follow the below steps :
1- Log in to the StartUp India website with your registered account credentials and click on the ‘DPIIT Recognition for Startups’ button under the ‘Schemes and Policies' tab.
2 – Click on the ‘Get Recognised' button on the next page. A new page will open. Scroll down this page and click on the ‘Click here for submitting your application for recognition as a Startup’ button.
3- On the ‘Startup Recognition Form’, you need to fill in the details such as the entity details, full address (office), authorized representative details, directors/partner details, information required, startup activities, and self-certification.
4- After entering all the sections of the ‘Startup Recognition Form’, accept the terms and conditions and click on the ‘Submit’ button.
Documents Required for StartUp Registration
➭ Incorporation/Registration Certificate
➭ Proof of funding, if any
➭ Authorization letter of the authorized representative of the company, LLP or partnership firm
➭ Proof of concept like pitch deck/website link/video (in case of a validation/ early traction/scaling stage startup)
➭ Patent and trademark details, if any
➭ List of awards or certificates of recognition, if any
➭ PAN Details
Step 4: Getting Recognition Number
You will be provided with a recognition number for your startup after the successful submission of your application. The certificate of recognition will be issued after the examination of all your documents which is usually done within 2 days after submitting the details online.
The applicants should be careful while uploading the documents because if on subsequent verification, it is found to be obtained that the required document is not uploaded/wrong document uploaded or a forged document has been uploaded then you shall be liable to the fine.
Today, the Indian government is very supportive of startups! It is the primary reason that an increasing number of Indians are entering the business world. The government’s Startup India Initiative offers a variety of incentives to encourage aspiring entrepreneurs. It will also promote the more prevalent entrepreneurial culture in India.
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