What is the Start-up India Scheme?
The start-up culture in India is booming. The recent news of Cred and Meesho becoming unicorns has spread a sense of positivity among the early-stage founders. The government of India, too, wants to capitalize on this high sentiment. To boost the further growth of start-ups, India's government started the Startup India Initiative on January 16, 2016. The start-up India initiative has three objectives:
Create a uniform stage for the entire start-up ecosystem to come together.
Facilitate and encourage entrepreneurship
Promoting entrepreneurship not only in metro cities but also in smaller regions of the country.
Through this article, we shall explore the various aspects of the Start-up India scheme.
Who can Register in Start-Up India?
Eligibility for registering under the Start-up India Scheme depends upon the nature of the entity. A Private Limited Company (Pvt. Ltd. Co.), a Partnership Firm under Section 59 of the Partnership Act, 1932, or a Limited Liability Partnership (LLPs) under the Limited Liability Partnership Act, 2008 can register under the Start-Up India scheme if they fulfill the below listed criteria:-
Not more than ten years should have passed since the date of business registration.
The entity's annual turnover for any financial year since its registration should not be more than INR 100 crores.
The ais and objectives of the entity should be innovation and development. It should promote employment generation and wealth creation.
Enterprise is not formed by splitting up or reconstructing an already existing business.
Start-ups devising innovative solutions in sectors such as social impact, waste management, water management, etc.
What is Startup India Registration?
Start-up India Registration Scheme is a flagship initiative of the Indian government to build a robust ecosystem for nurturing innovation and Start-ups in the country. The start-up registration process on the Start-up India platform involves a simple registration. Registering a profile on the start-up India hub is a relatively simple process. We can start by clicking on the "Register" tab on the top right-hand corner on the home page of the start-up India scheme, which will be directed to the "mygov" platform for authentication where the user will be asked to fill in details such as the name, email address, etc. This will give the user an OTP or a one-time password for verification and a link to set a new password. The user can then sign in using the login credentials he just created. This will direct him to the Hub to select and create the profile of a stakeholder that best defines his role.
You will need the following documents to register on the Start-up India hub:
Certificate of incorporation/registration.
Details of directors/partners
Which Registration is Best for a Start-Up?
The most favored business structures for a start-up are Private Limited organizations and Limited Liability Partnerships ( LLPs ). A Private Limited organization has more credibility. Investors prefer putting their money in private companies, and the government too favours the setting up of such corporate structures. Limited Liability Partnerships are the next most-favoured structure chosen by the start-up founders. An LLP is a distinct entity, and the partners' liability is limited. It has lesser compliances than a private company, and hence, those founders who do not want to burden themselves with legalities opt for an LLP structure.
What are the benefits of the Start-Up India Scheme?
The Startup India Scheme provides various advantages to the start-ups registered under it. In any case, to avail these advantages, a firm should be set up by the Department for Industrial Policy and Promotion ( DPIIT ) as a start-up.
Start-ups are permitted to self-declare their compliance with specific labour laws and environmental laws. This benefit of self-declaration is available for five years since the date of inclusion on the scheme. Start-ups are permitted three-year tax exclusion, as well as the best-licensed innovation administrations and assets exclusively working to assist start-ups so that it protects their intellectual property.
Can a Foreign Company Register Under the Startup India Hub?
Any entity that has its office registered in India can enlist itself on the Startup Scheme. However, the scheme does not facilitate the registration of foreign-incorporated companies. If a foreign company has a subsidiary in India, such a subsidiary can register under the Startup Scheme, given it fulfills all the relevant criteria.
For how long is a company recognized as a start-up?
Any business entity that has completed ten years from the date of its registration and has exceeded the previous years' turnover of 100 crores shall stop being recognized as a start-up under the Startup India Scheme on completion of 10 years from the date of its registration.
How do I know my registration is complete?
Once the application is complete and the start-up gets recognized, the applicant will receive a system-generated certificate of recognition. The applicants will also be able to download this certificate from the Startup India portal
People Also Consulted a Lawyer about Startup India Scheme.