Eligibility Criteria for Startup India Registration

• Age of the Firm Any Indian citizen aged 18 or above can apply for the scheme
• Age of the Applicant The company’s Incorporation date should be at most ten years
• Type of Company The company should have been incorporated as a Partnership Firm, Private Limited Company, or a Limited Liability Partnership (LLP).
• Annual Turnover The company’s turnover should be at most Rs.100 crore in any financial year since Incorporation.
• Innovative & Scalable The startup should have a plan for developing or improving a product, process, or service and have a scalable business model with a high potential for creating wealth & employment.

Benefits of Startup India Registration

Self Certification

 Startups can easily self-certify compliance for 6 Labour and 3 Environmental Laws through a simple online procedure

Tax Exemption

Recognized startups enjoy income tax exemption for three consecutive financial years out of their first ten years since Incorporation. They can also apply for exemption from angel tax under Section 56 of the Income Tax Act

Easy winding up of Company

Startups can shut down their business within 90 days from the date of application.

Access to Funding

Startup India offers two funds to support registered startups: a. Fund of Fund for Startups (FFS) b. Startup India Seed Fund Scheme (SISFS)

Easier Public Procurement Norms

Government ministries, departments, and public sector undertakings have been authorized to relax norms in all public procurements for startups recognized by DPIIT.

Patent Application and IPR Services

DPIIT-recognized startups receive significant benefits while processing patents and other intellectual property rights services at a considerably lower fee. Startup India provides an 80% rebate for filing patents and a 50% rebate for filing trademarks

Procedure for Registering a Startup in India

Step 1: Incorporate Your Business

The first step is to incorporate your business as a Private Limited Company, Partnership firm, or Limited Liability Partnership (LLP). This involves following the standard procedures for business registration, such as submitting the registration application and obtaining the Certificate of Incorporation or Partnership registration.

Step 2: Register with Startup India

After incorporating your business, the next step is to register it as a startup. The process is straightforward and can be completed online. To begin, visit the Startup India website and click the ‘Register’ button. Provide your name, email ID, and mobile number, and create a password, then click ‘Register.’Next, enter the OTP (One-Time Password) sent to your email and provide additional details, such as the type of user, name, and startup stage. Click on the ‘Submit’ button to create your Startup India profile. By completing this Registration, your business will be recognized as a startup under the Startup India scheme, making it eligible for various benefits and support.

Step 3: Obtain DPIIT Recognition

After creating the Startup India website profile, the next crucial step is to obtain recognition from the Department for Promotion of Industry and Internal Trade (DPIIT). This recognition offers startups access to various benefits, such as high-quality intellectual property services, relaxation in public procurement norms, self-certification for labor and environmental laws, easy winding up of the company, access to Fund of Funds, and tax exemption for three consecutive years, including tax exemption on investments above fair market value.

To apply for DPIIT Recognition, log in with your registered profile credentials on the Startup India website and click the ‘Apply for DPIIT Recognition’ option under the ‘Recognition’ tab. On the following page, choose ‘Apply as Company or LLP’ or ‘Apply as Partnership Firm.’

If you select ‘Apply for Company or LLP,’ you will be redirected to the National Single Window System (NSWS) website. Companies and LLPs should register on the NSWS website and add the ‘Registration as a Startup’ form to initiate the DPIIT recognition process. This step will officially recognize your startup under DPIIT, making it eligible for the range of benefits and support the Startup India scheme provides.

Step 4: Submit the Documents for Registration

To complete the registration process and obtain DPIIT recognition for your startup, you need to submit the following documents:

• Incorporation/Registration Certificate of your startup.
• Proof of funding, if any.
• Authorization letter of the company’s authorized representative, LLP, or partnership firm.
• Proof of concept, such as a website link, a pitch deck, or a video (applicable for validation/early traction/scaling stage startups).
• Patent and trademark details, if any.
• List of awards or certificates of recognition, if any.
• PAN (Permanent Account Number) Number.

Step 5: Self-Certification of Eligibility Conditions :

There are no MSME registration fees and it does not require proof of documents. PAN and GST-linked details on investment and turnover of enterprises will be taken automatically by the Udyam Registration Portal from the Government databases since the portal is integrated with Income Tax and GSTIN systems. GST registration is not compulsory for enterprises that do not require a GST registration. However, enterprises that mandatorily need to obtain GST registration under the GST law, must enter their GSTIN for obtaining the MSME Registration or Udyam Registration.

How to Apply for MSME Registration on Udyam Registration Portal

Self-certify that your business meets the following conditions:

• Your business is a Private Limited company, LLP, or partnership firm.
• Your business has been incorporated or registered in India for at most five years.
• Your company’s turnover is at most Rs. 100 crore.
• Your company is constantly innovating or improving existing systems.
• Your business is based on a fresh idea, not splitting up or reconstructing an existing business.

Step 6: Obtain Your Recognition Number

Upon application for Registration, you will receive a recognition number immediately. The certificate of Registration or Incorporation is issued after the authority reviews all your uploaded documents.
Note: Ensure accuracy while uploading data to avoid discrepancies, as errors may lead to fines of up to 50% of your paid-up capital or a minimum of Rs. 25,000.
By fulfilling the eligibility and registration criteria, your company can enroll in the Startup India scheme and access various benefits provided by the Government.