The Startup India scheme is becoming very popular day by day in India, It helps to develop the Indian economy and also attract skilled entrepreneurs and businessmen. The Government of India started this program under the leadership of PM Narendra Modi. This initiative is very beneficial for creating entrepreneurs and also generating employment in our country.
The DPIIT (Department for Promotion of Industry and Internal Trade) is one of the Government departments that had initiated the Startup India scheme which would help the new business to forward and contribute to the Indian economy.
The DPIIT (Department for Promotion of Industry and Internal Trade) Recognition is one type of proof of identification provided by the Indian Government. The Indian Government provided the DIPP number (The Department of industrial policy and promotion), This DIPP number helps the startups for registering the StartUp India scheme where they can get a number of benefits from this scheme for their StartUp. To boost the Indian economy and also increase the confidence in the youths for becoming an entrepreneur and encourage entrepreneurship, The Government of India started the StartUp India Certificate of Recognition in 2015. The government is taking the initiative to increase business development as it also helps to boost the Indian Economy. This Startup program is helpful for those who have innovative ideas but they don't have the financial condition to start the business. This Startup India Registration certificate is helpful for the many innovative ideas to spread their business.
The Startup India certificate needs for every person that is doing the startup in any field, This certification actually contains intellectual property rights including Trademark Registration, Patent, and copyright registration. It will also provide some benefits with that certificate that are also beneficial for your new startup company.
Eligibility For Getting The Certificate:-
- This Startup applies for this recognition certificate; The Startups should have a turnover of fewer than 100 Crores in a previous financial year. If the turnover of the company is greater than 100 Crores then the company is not eligible for the recognition certificate of India
- The Startup must have to be incorporated as a company that is a private limited company or a partnership firm.
- A company shall be considered and known as a Startup up to 10 years from the date of the registration of the company.
- The reconstruction of the existing business is not eligible for acquiring recognition, The Startup should have innovative ideas and some improvement in any product, Service, and Process, the startup must have to produce new employment opportunities and create wealth. This type of Startup is eligible for the acquiring recognition of startup India.
Benefits of Startup India Registration
This startup that clears all criteria of the eligibility will be approved for the "DPIIT StartUp Recognition (The Department for Promotion of Industry and Internal Trade)" this StartUp can get the following benefits
1. Tax exemption
Tax exemption under the 80 IAC After getting the approval for the recognition certificate for the startup they have the tax holiday/exemption for the 3 consecutive financial years out of its first 10 years since incorporation.
Post acquiring recognition a Startup may apply for exemption of tax under section 80 IAC which is an Act of Income Tax. Post getting approval for Tax exemption, the Startup can avail of a tax holiday for 3 continuous financial years out of its initial first ten years since the establishment of the organization.
The object should be verified as a Startup.
Just a Private Limited company or a Limited Liability Partnership is available the exemption of tax under Section 80IAC.
The Startup should have been incorporated after 1st April 2016.
Startup India:
Exemption of tax under Section 56 which is of the Income Tax Act (Angel Tax) Post gaining honor a Startup may an application for Angel Tax Exemption.
Acceptability Guidelines for the exemption of tax under Section 56 which is of the Income Tax Act:
- The object should be a Department for Promotion of Industry and Internal Trade (DPIIT) recognized Startup.
- The aggregate number of paid-up share resources and share premium of the Startup after the proposed issue of a share, if any, does not exceed INR 25 Crore.
Who is not eligible for the Startup India Registration:-
If the organization is a Sole Proprietorship and if its annual turnover exceeds INR 100 crores and if the company is 10 years older then it is not eligible for the Startup India Registration Certificate.
2. Self Certification
- Self Certification compliance can be done for the 6 Employers and Labour Laws and 3 Environmental laws.
- For the laws that had been imposed on the laborers, There will be no audit or inspection conducted for the 5 years. The Inspection will be done for any issues like the verifiable complaints of violation against the company.
The Startup can self-certify through the startup India portal with given below 6 labor laws that are
- Employees’ State Insurance laws- Gratuity Laws- Provident Fund Laws- Contract Labour laws- Other Constructions Workers’ laws- Inter-State Migrant Workmen laws- The Startup India team or professional assistance in order to self-certify labor laws compliances.
- For the environmental Laws, The Startup Falls under the white category in that the pollution index having up to 20 they would be able to self certify compliance and only irregular checks would happen in such cases.
3. Patents
- Startups shall be provided an 80% refund in filing the patents.
- The patent application filed by the startups shall be fast-tracked for a review so that their value can be obtained fastly.
4. Easily Exiting from the Company.
- Startups that has simple debt structures or those meeting certain income designated models can be wounded up within 90 days of filing an application for bankruptcy.
- A professional shall be delegated for the Startups, who shall be the charge of the organization. The liquidator shall be liable for the swift closure of the business, sale of assets, and repayment of lenders in accordance with the distribution waterfall set out in the IBC.
The Validity of StartUp India Certificate:-
The Validity of the Indian startup recognition certificate is for the 10 years from the registration of the company the validity is also ended when your company crosses the 100 Crores turnover earlier.
Process of Startup India Registration in India
- Step 1: The first thing you must have to do before applying for the startup India registration is you need to incorporate your business as a Private Limited Company or Limited Liability or a Partnership firm, after that you have to follow the normal procedure for registering the company for the Startup India. If your company fulfills all eligibility criteria then you need to register your company for the Startup India scheme of the government. You have to provide all required business details and information about the company. While registering you have to fill the registration form that is available on the official website of Startup India. You must have to provide all the details about the company and also you have to provide and upload all necessary documents.
- Step 2: You need to choose the packages that are provided on the website after choosing the packet you have to pay the online fee, You can pay using any mode that is provided on the website.
- Step 3:: After the completion of all forms and placing the order, The application of Startup India will be assigned to one of the professionals in the Startup India program.
- Step 4: The Startup India professionals examine all details and all eligibility criteria of the Startup India Registration after that they file the application on the next level. The Startup India department also confirmed all information that you provided in the online form in the verification process.
- Step 5: By following all the rules and guidelines of the government of India the department of Startup India examines the information and sends it to the department to issue the startup India certificate.
- Step 6: On the Successful examination, and confirm all details provided by you that the Government provides the Startup India Registration certificate will be provided to you. These are all steps you have to follow for getting the Startup India Registration certificate.