Startup India - Empowering India's Startup Ecosystem

posted on Jan 22, 2025

India's ambition to become a $10 trillion economy

What is a startup?

A startup is a business managed by the collection of a few people that solves a problem.
Such companies come into formation when the founders find some negatives in the existing system they have been working in and intend to solve the issues by creating a new company of their own.
Apart from this, a startup can also come into existence when the founder(s) come with a potentially great idea. The services such startups provide are the services they think currently exist in inferior quality or do not exist at all.
The biggest advantage of a startup is that it improves employment in the country as it is the direct result of more and more companies coming up. With the possibility of increased job opportunities, the Indian government has tried to help young companies grow and thrive in the Indian market. The Startup India initiative helps you to innovate and improve economic sustainable development.

Now that you have a better idea about what a startup is and what Startup India talks about, let us look into what all companies qualify as a Startup in India.

Eligibility Criteria For Startup India Registration

Age of applicant should be above 18 years of age
Type of company is registered as a partnership with limited liability, private limited company, or partnership firm
Age of firm should not yet have passed the ten-year mark following the date of registration or incorporation
Annual turnover of the company has not surpassed Rs. 100 crore in annual turnover during any of the fiscal years since registration or incorporation
Scope for innovation
Company should have original entity

Procedure For Registering Into The Scheme

Step 1: Incorporate Your Business

Your company must initially be established as a sole proprietorship, limited liability Partnership, Private Limited Company, or Partnership firm. In order to register any firm, one must adhere to all prescribed processes, which involve completing the registration application and obtaining the Certificate of Incorporation/Partnership registration.A Limited Liability Partnership (LLP) or Private Limited Company might be incorporated by presenting a registration application to the local Registrar of Companies (ROC). By filing an application to the local registrar of firms for registration, you can establish a partnership firm.

Step 2: Register with Startup India

Everything regarding the process is online and straightforward.Click "Register" after inputting your full name, login credentials, username, email address, and your cell phone number.Click the "Submit" button after providing the OTP that has been stipulated to you via email and any additional details, including the user type, name, startup stage, etc. The Startup India profile has been created after these facts have been entered. Startups can apply to multiple acceleration and incubator/mentorship programmes on the website after generating a profile. They additionally have access to government schemes, funding possibilities, instructional materials, and market access.

Step 3: DPIIT Recognition

This endorsement helps the startups to avail benefits like access to high-quality intellectual property resources and services, relaxation in government procurement norms, self-certification under labour and environment laws, easy extending of company, access to Fund of Funds, tax exemption for 3 consecutive years and tax exemption on investment above equitable market value.

To be considered for DPIIT Recognition, visit the Startup India website, log onto it with your registered credentials, and choose the 'Apply for DPIIT Recognition' option accessible under the 'Recognition' page.

Choose "Apply Now" on the subsequent page. The National Single Window System (NSWS) website will be rerouted. In order to get DPIIT recognition, companies and limited liability partnerships (LLPs) have to register on the NSWS website, add the "Registration as a Startup'' form, and fill out the "Startup Recognition Form."

Step 4: Application of Recognition

You need to finish up the "Startup Recognition Form," which consists of fields pertaining to the entity, designated representative, directors, and partner data, and it also includes information about necessary startup activities and self-certification. Enter every component of the form by clicking the + symbol that appears on the right side of the form. After you click "Submit," you confirm that you agree to the terms and conditions.

Step 5: Documents for Startup Registration

Mentioned below is the list of documents absolutely necessary for registering into Startup India Scheme:

PAN Number
Declaration of authorization from the the organisation's, partnership firm's, or LLP's authorised representative
Proof of concept in the kind of format of a sales pitch deck, website, or video
Proof of funding, if any
Details of any trademarks and patents
Declaration of awards or certifications that are available if any

If the business you run meets the necessary criteria and registration requirements, it may apply to be a member of the Startup India program and get government-sponsored perks

Benefits of Startup India Scheme

The Startup India scheme offers many advantages that can significantly benefit aspiring entrepreneurs:

Tax Exemptions: Eligible startups can avail income tax exemption for three consecutive financial years out of their first ten years. This financial relief allows startups to reinvest their profits into growth and expansion.
Regulatory Relaxations: Self-certification for compliance with various labor and environmental regulations is allowed for startups. This eases the administrative burden and allows them to focus on core business activities.
Faster IPR Registration: The program facilitates and subsidizes patent, trademark, and design filing processes, protecting the intellectual property of startups.
Government Procurement: Simplified access to participate in government tenders opens doors for startups to showcase their solutions and gain valuable contracts.
Seed Fund Scheme: Financial assistance of up to Rs. 10 lakhs is available under the Startup India Seed Fund Scheme (SISFS) to support proof-of-concept, prototype development, and market entry