Startups are booming in India. A startup is a small pool of innovation and efficiency. They are owned by a single founder or many founders ready to scale their business to greater heights.
It is an entrepreneurial venture in its early stages of operations created to solve real-life problems or upgrade products/services available in the market.
Startup registration eligibility
Anyone above 18 years having an innovative idea or idea to improve an existing product/service can register a startup in India. Even NRIs and foreigners can register a startup in India along with an Indian entrepreneur.
How to register a startup company in India :
Below is the process of company registration in India:
- The founding members and directors of the company must obtain a Digital Signature Certificate (DSC).
- The directors of the proposed company must get a Director Identification Number (DIN).
- The company should apply for name reservation in Part-A of the SPICe+ form.
- The company must fill in the other details in Part-B of the SPICe+ form.
- The Registrar of Companies (ROC) will issue the Certificate of Incorporation along with the PAN number after examining the SPICe+ application and documents.
How to register a company in the Startup India scheme :
The Government of India has introduced the Startup India scheme to encourage startups in India. Startups registered under the Startup India scheme get various benefits, such as ease of compliance, tax exemptions and various funding options.
Startups must be registered as an OPC, limited liability company, LLP or partnership firm before registering under the Startup India scheme. Startups in existence for more than ten years cannot register under this scheme. Similarly, startups having an annual turnover of more than ₹100 crore cannot register under this scheme.
List of documents required for startup registration in India :
- PAN card of all directors and members (partners in case of LLP or partnership firm).
- ID and address proof of all directors and members (partners in case of LLP or partnership firm).
- Proof of registered office address of the startup (Registered address’ utility bill or rental agreement).
- NOC from the land owner where the startup is situated on a rental property.
- Partnership deed or Articles of Association and Memorandum of Association.
Startup registration benefits :
- Startups are exempted from paying income tax for three years provided they get an Inter-Ministerial Board (IMB) certification.
- Startups can apply for government tenders since they are exempt from the ‘prior experience/turnover’ criteria.
- Startups registered under the Startup India scheme can self-certify compliance with nine labour and three environment laws.
- Startups recognised by DPIIT can list as sellers on the Government e-Marketplace, the Government of India’s largest e-procurement portal.
- Startups can raise money easily from investors, Venture Capitalists (VCs) and angel investors.
- Startups can process patents and other intellectual property rights at a considerably lower fee.
follow us on - @thetaxfirm.co.in , @thetaxfirm.insider , @thetaxfirm.inhindi
whatsapp channel :- https://whatsapp.com/channel/0029VavmAPu7tkjAj6VlYd1g
