Company Registration under Startup India 

Companies, if eligible to be recognized as Startups under the Startup India Scheme, can avail of benefits offered by the Government, with the aim to assist Startups in their financial growth, especially during the initial stages of their establishment. For this purpose, such Startups need to obtain registration/ recognition with the Department of Promotion of Industry & Internal Trade or DPIIT. 

What is Startup India Registration?

Startup India is a flagship initiative of the Indian Government introduced in the year 2016. Under this initiative, the government provides a number of benefits to startups in order to nudge their growth with the primary objectives of employment generation and wealth creation. However, for availing these benefits, Startups are required to obtain the recognition of the Department for Promotion of Industry and Internal Trade (DPIIT), and register on the Startup India Portal (Startup India Registration). 

Benefits for Startups under Startup India Registration: 

1. Income Tax exemption for 3 years 
2. Capital Gains Tax Exemptions for Angel investors 
3. 80% rebate on Patent Filing and 50% rebate on Trademark Filing
4. Easy Credit under the Credit Guarantee Scheme 
5. Easy winding up within 90 days under the IBC

Eligibility of Companies to be recognized as Startups

Startup India Registration can be obtained by a number of business structures, including, registered Partnership Firms, Limited Liability Partnerships, and Companies. Among companies, only Private Limited Companies and Person Companies, are eligible. However, this is certainly not enough! To obtain Startup Registration, companies also have to fulfill the following criteria:

1. The company should not have been incorporated for more than 10 years, before the date of application 
2. The company should not have objectives other than profit earning, wealth creation, and employment generation
3. The company should deal in products, services, or processes, that are new and innovative 
4. The company should be a new creation, and not the result of reconstruction, or splitting up of an existing company 
5. The turnover of the company should not have exceeded Rs.100 crores in any financial year since its incorporation 

How to obtain Startup India Recognition?

To obtain Startup India Registration for your company, the first step is to register/incorporate it with the Registrar of Companies.This is because unregistered/ unincorporated companies cannot avail of the benefits under the Startup India initiative. 

For company registration, you will need to file an application in Form INC 32 to the Registrar of Companies, and fill out the required details of the company’s promoters, company shareholders, company name, and address. After filling out the details, the prescribed documents will have to be attached, and finally, after the payment of the prescribed fees, the process of company registration will finally be completed. 

The process of company registration in India is quite simple, easy, quick, and 100% online. The application is filled out online, the documents are uploaded in digital format, and the application is signed/certified by the authorized representative of the company, usually one of the company’s directors, using a Digital Signature Certificate. 

After registering your company with the ROC, you can proceed with registering and creating its profile on the Startup India Portal. The details you need to provide include the details of directors/partners, the details of the authorized representative, the business plan, details of funding, details of intellectual property, and the proposed business activities.

You can proceed with filing the application for DPIIT recognition, once you have completed your registration and profile creation on the Startup India Portal. For the purpose, you must fill out the necessary details, and attach the necessary documents including the 

1. Incorporation / Registration Certificate of the company
2. Letter of Authorization
3. PAN of the company
4. Aadhar of the Authorised Representatives
5. Depending on the stage of your startup, you may be required to attach certain additional documents

Once the application is approved by DPIIT, a Certificate of Startup Recognition is issued to your company. 

Conclusion

Eligible companies can obtain registration/recognition as Startups under the Startup India Scheme, and avail of several benefits offered by the Government. For this purpose, company registration is mandatory with the Registrar of Companies. Hopefully, this post has helped you in understanding the complete procedure for both of these subsequent registrations.