Startups are becoming very popular in India. In order to develop the Indian economy and attract talented entrepreneurs, the Government of India, under the leadership of PM Narendra Modi, has started and promoted the Start up India initiative to recognize and promote start ups.
Under the Start up India initiative, the government aims to help entrepreneurs by simplifying starting a business, access to funds, and streamline other growth factors that are important for early-stage companies.
It requires businesses to be a part of the Start up India initiative to reap its benefits. Let’s understand how your start up can become a part of Start up India.
Who can register with start up India?
An entity incorporated as a Private Limited Company, Partnership Firm or a Limited Liability Partnership can register themselves under the start up India scheme. The annual turnover of these business entities should not exceed Rs.100 crores, and they should have been in existence for up to ten years from the date of its incorporation/ registration. Such an entity should be working towards innovation, development or improvement of products or services or processes.
What are the Documents required for START UP Registration?
- Incorporation/Registration Certificate of your start up
- 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 start up)
- Patent and trademark details, if any
- List of awards or certificates of recognition, if any
- PAN Number
Key Features of the Fund of Funds
- The Fund of Funds shall be managed by the Small Industries Development Bank of India (SIDBI)
- Life Insurance Corporation (LIC) shall be a co-investor in the Fund of Funds
- The Fund of Funds shall contribute to a maximum of 50% of the SEBI registered Venture Funds (“daughter funds”). In order to be able to receive the contribution, the daughter fund should have already raised the balance 50%. The Fund of Funds shall have representatives on the board of the venture fund based on the contribution made.
- The Fund shall ensure support to a broad mix of sectors such as manufacturing, agriculture, health, education, etc.
It’s very easy to register as a start up thanks to the various government initiatives. However, you can focus on your key area while we at ClearTax help you from start to finish right from incorporating your company to getting your start up recognition.
Also Read-ISO Certificate
What kind of business structure should I choose for my startup?
The most preferred business structures for a start up are Private Limited companies and LLPs. A Private Limited company is legally recognized and generally favored by investors. However, it has stricter compliance and may have a higher cost of incorporation.
Whereas incorporation cost is lower for LLPs and they tend to have relaxed compliance in comparison to the Private Limited Companies. In addition to that, LLPs have limited liabilities and are equally recognized by investors and all over the world.
Eligibility for Start up India initiative
Since start ups get exclusive benefits once they are a part of Start up India, there are certain conditions that your company must meet to get recognized under this initiative.
According to the Startup India official website, these are the requirements for a startup to get into the coveted Startup India initiative:
- Your startup must be a private limited company or registered as a partnership firm or a limited liability partnership
- It should have a turnover of less than Rs 100 crores in any of the previous financial years (from the date of application)
- Your startup must be equal to or less than 10 years old from the date of its incorporation
- Your startup should be working towards innovation or improvement of existing products, services, and processes. It should have the potential to generate employment or create wealth
- An entity formed by splitting up or reconstruction of an existing business shall not be considered a “Startup”
If your startup meets all the criteria’s mentioned above, you can apply to get registered with Startup India.
For Registration of Startup Indian.
Professional Fee: Rs 3999 /-
Pay Fee for Startup Registration
Contact Us +91-8298057771 (WhatsApp Call / msg only)
Fill Below form