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Expert Guidance on Startup India Registration

A startup is a small company founded by a small group of people as an initiative to start a business. However, it should not have completed 10 years of existence and its annual turnover should not have exceeded Rs. 100 crore (USD 14 million) to term it as a ‘startup’.
Startup India Registration can be applied to a Limited Liability Company (LLP), a partnership firm or a Private Limited (Pvt. Ltd.) company. According to the definition of startup in India, your startup should work towards innovation, development, or improvement of products, services, or processes. You should also think of employment generation and scalability.
The definition of startup in India also includes eligibility and annual turnover criteria for a few sectors. However, you cannot split or reconstruct an existing business to call it a startup.

Startup Registration Process in 6 Easy Steps

After having a clear picture of your startup and its inner operations, you may proceed with the startup registration process.

1. Business Incorporation

Begin the startup India Registration process by incorporating your firm as an LLP, Pvt. Ltd. or partnership firm. According to your business structure (LLP, partnership or Pvt. Ltd.), submit the required documents and fees to the Registrar of Companies (ROC) or Registrar of Firms.

2. Startup India Registration

It is a scheme by the Indian government to encourage young startups. Startup India registration provides tax benefits, dispute resolution, easier fund raising, branding and recognition and more benefits according to the eligibility criteria.

Visit the Startup India website and register.

3. The MCA Portal

Fill out Part A and Part B of the SPICe+ form on the MCA Portal. The founders of your startup should have the Digital Signature Certificate (DSC), while the directors should have the Director Identification Number (DIN). After you submit required details on the portal, your application will be handled by the Registrar of Companies (ROC).

4. DPIIT Recognition

The startup registration process includes DPIIT registration, which offers benefits like tax exemption, easier fund raising, the availability of appropriate resources and more, according to the eligibility criteria. You may submit an application for the DPIIT registration on the Startup India website.

5. Tax Benefits with IMB

The Inter-Ministerial Board (IMB) certificate brings tax benefits. For instance, you might not pay income tax for the first three years in the name of your startup if you have this certification and follow related eligibility criteria.

6. Get the Recognition Number

The ideal period between submitting the application form and getting the startup registration number is 2 days. However, you must submit appropriate documents and fulfil all eligibility criteria during the startup registration process.

On successful registration, your startup will get a certificate of incorporation. It will include your PAN number, DIN and the company’s identification number. Moreover, you must open a bank account in the name of the startup.

Documents Required For Startup India Registration

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Multiple Startups Are Already Having a Smooth Registration.
What About You?

FAQs

May I Start a Startup Solely?
If you start a startup solely, it will be called the ‘One Person Company.’ However, by registering it, you can avail of the benefits under the Startup India registration.
How Much Should Be the Maximum Turnover for a Startup?
The maximum annual turnover for a startup is Rs. 100 crore in India (USD 14 million).
Should I Register My Startup as an LLP or a Pvt. Ltd. Company
An LLP has limited liabilities, lower incorporation costs and relaxed rules than a Pvt. Ltd. company. However, LLPs have limited funding opportunities. So choose accordingly.
My Startup Is Located Outside India. May I Register It?
Startup India Registration is currently applicable only to startups with a registered address in India, though there are chances of scalability in the future.
What Are the Main Categories of Startups?
Your startup might fall into one of these main categories: social impact, technology, fintech, health tech, AI and ML and e-commerce.
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