Startup India Scheme
Startup India is an initiative of the Government of India launched on 16th January, 2016. The campaign was first announced by Indian Prime Minister, Narendra Modi during his 15 August 2015 address from the Red Fort, in New Delhi. The action plan of this initiative is focussing on three areas: Simplification + Handholding, Funding + Incentives and Incubation + Industry-Academia Partnerships.
Since its launch in 2016, the Startup India Initiative has rolled out several programs with the objective of supporting entrepreneurs, building a robust startup ecosystem and transforming India into a country of job creators instead of job seekers. These programs are managed by a dedicated Startup India Team, which reports to the Department for Promotion of Industry and Internal Trade (DPIIT). Accordingly, the benefits of the Startup India initiative are granted to Startups recognised by DPIIT as such.
Further, to be eligible for the benefits of the Startup India Scheme, it is compulsorily that the Startup business must be registered either as a Company under the Companies Act 2013 or as a Limited Liability Partnership (LLP) under the LLP Act or as a Partnership firm under the Indian Partnership Act, 1938. Proprietorship and Unregistered Partnership firms are not eligible for the said benefits.
Broadly, steps involved in the process of forming a Startup and availing the benefits of Startup India Scheme / Initiative:
- Form an eligible business entity (i.e. Private Limited Company, One Person Company, LLP or Registered Partnership Firm)
- Make a Startup profile on https://www.startupindia.gov.in/
- Apply for DPIIT recognition
- After Obtaining recognition, some benefits are directly available. However, for some benefits you may have to file certain declaration/ forms. Say for example,
- Register at Shram Suvidha Portal to avail self-certify compliance facility for 6 Labour Laws and 3 Environmental Laws through a simple online procedure
- File Self declaration form to claim exemption from the provisions of section 56(2)(viib) of the Income Tax Act, 1962 (if required)
- Apply to Inter Ministerial Board (IMB) for Income Tax exemption under section 80 IAC of the Income-tax Act, 1961.
Tax Vyapar will help you in all requirements relating to forming an eligible business entity to kickstart your Start-up ambition.
Want to know more? Drop your contact details here
Note: As per the Official website of Startup India, “Application for Startup India Certificate of Recognition should be filed by the Startup on its own, using own details/ mobile No./ email.” It is further stated, “Any charging of fees for Recognition for Startups is illegal and will invite appropriate legal action”.
Our Pricing
Startups prefer forming a Private Limited Company as it makes fund raising from investors very smooth, limits the liabilities of its shareholders and enables them to offer employee stock options to pull in top talent.
Accordingly, our Company Registration pricing is as under:
Basic
Company Registration-
2 Digital Signature Certificate (DSC)
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2 Director Identification Number (DIN)
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Incorporation Fees
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Stamp Duty *
-
Incorporation Certificate
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Share Certificate Hard Copy
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MoA & AoA
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PAN & TAN
-
GST
Standard
with Commencement Certificate-
2 Digital Signature Certificate (DSC)
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2 Director Identification Number (DIN)
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Incorporation Fees
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Stamp Duty *
-
Incorporation Certificate
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Share Certificate Hard Copy
-
MoA & AoA
-
PAN & TAN
-
GST
-
Certificate of Commencement (Form INC 20A)
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Udyog Aadhar (Udyam Registration)
Premium
Company & Trademark Registration-
2 Digital Signature Certificate (DSC)
-
2 Director Identification Number (DIN)
-
Incorporation Fees
-
Stamp Duty *
-
Incorporation Certificate
-
Share Certificate Hard Copy
-
MoA & AoA
-
PAN & TAN
-
GST
-
Certificate of Commencement (Form INC 20A)
-
Udyog Aadhar (Udyam Registration)
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Importer Exporter Code (IEC)
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Trademark Registration (one class one application)
* Upto 5 Lakhs Authorised Capital
Note:
- Digital Signature Certificate (DSC) includes Class 2 digital signatures with 2 year validity on secure USB token.
- Authorised capital is the amount of shares a company can issue at anytime and can be increased further in the future. Paid-up capital is the amount actually invested by shareholder and there is no minimum requirement for the same.
- Registration of company having registered office in the state of Maharashtra will also receive mandatory Professional Tax Registration.
- Trademark Registration includes filing of application Form TM-A only. After which, if no objection is received, the trademark will be accepted and registered.
Company Name Availability
The first step in Company Registration is to ensure that the desired company name has not already been taken by another company or legal entity.
To check if a company with your desired name exists, click the following link, and run company name search in the Ministry of Corporate Affairs (MCA) database:
Additionally, it should be ensured that the desired name has not been trademarked by anyone else. If it has been trademarked, you would need to obtain a no-objection certificate (NOC) from its owner saying he has no objection if you use the desired name as your company name. Once the NOC is furnished to the MCA, only thereafter it will be approved as your company’s name.
Click the following link to check if a trademark already exists against your desired name:
Benefits of being recognised by DPIIT
- Intellectual Property Rights (IPR) benefits
- Relaxation in public procurements norms
- Self-Certification under Labour & Environment laws
- Fund of Funds for Startups
- Faster exit
- Income Tax Exemptions
- Startup India Hub Resources
Eligibility criteria for getting DPIIT recognition
Company Age
Period of existence and operations should not be exceeding 10 years from the Date of Incorporation
Company Type
Incorporated as a Private Limited Company, a Registered Partnership Firm or a Limited Liability Partnership
Annual Turnover
Should have an annual turnover not exceeding Rs. 100 crore for any of the financial years since its Incorporation
Original entity
Entity should not have been formed by splitting up or reconstructing an already existing business
Innovative & Scalable
Should work towards development or improvement of a product, process or service and/or have scalable business model with high potential for creation of wealth & employment
Comparison
Compare different types of business structures which are eligible for being registered under Startup India Scheme and determine which structure suits you the best
- Number of Person
- Governing Act
- Eligible for Tax Holiday under Startup India Scheme
- Liability
- Separate Legal entity
- Perpetual Existence
- Statutory Compliances*
- Statutory Audit*
- Tax Rates
- Tax on profits/ dividend distributed
- Recommended For
* Extent of Tax compliances and requirement for Tax Audit is same for all business structures, the above details pertain to compliance and audit requirement under their respective statues.
** Applicable when turnover exceeds INR 40 Lakh or contribution exceeds INR 25 Lakh
Time Frame
To register Company
After we receive all the information and documents required
To register LLP
After we receive all the information and documents required
To register Partnership Firm
Unregistered firm is not eligible. Time taken for registration varies from State to State, above time is for Maharashtra.
Obtaining DPIIT Recognition
Approximate time
Information Required
The following information are required for registering private limited company
General Company Details
- Proposed Name of Company
- Significance of Company Name
- Objects of Company
- Authorised Capital requirement (Minimum Rs. 1,00,000)
- Paid up Capital requirement *
- Whether promoters & Directors are same, if not give details
Promoters' Details
- Name of Promoters
- Qualification of Promoters
- Occupation of Promoters
- Email Id
- Mobile No.
- No. of years Director residing at present address (If less than one year than proof of earlier address also required)
* There is no minimum requirement for Paid-up capital.
Documents Required
The following documents are required for registering private limited company
Relating to ALL DIRECTORS & SHAREHOLDERS
- Photograph passport-size
- PAN Card
- Any one Proof of identity (Passport / Driving License/ Voters ID)
- Any one Proof of address (Telephone Bill/ Electricity Bill/ Mobile Bill / Bank Statement) *
Relating to REGISTERED PLACE OF BUSINESS
If Rented:
- Rent Agreement / Lease Deed
- Electricity bill *
- NOC from landlord / owner
If Owned:
- Purchase Agreement / Sale Deed
- Electricity bill *
* Recent bill/ statement (last 1-2 months)
DPIIT Recognition
Steps for making Startup profile and applying for DPIIT recognition
- Visit startupindia.gov.in
- New User: Click on ‘Register’ and provide details OR Simply register using any of your social media accounts
Existing User: Login using your credentials (Go to step 4)
- Provide OTP and other details like, startup as type of user, name and stage of the startup etc. Congratulations! Your startup profile is created
- Go to ‘Get Recognised’ directly (new users) OR
Dashboard > DPIIT Recognition (existing users)
- On the ‘Recognition Application Detail’ page, click on ‘View Details’ under the Registration Details section
- Fill up the ‘Startup Recognition Form’ and click on ‘Submit’
What do you need?
- Incorporation/Registration Certificate
- Director details
- Proof of concept like pitch deck/ website link/ video (in case of a validation/ early traction/ scaling stage startup) respectively
- Patent and trademark details (Optional)
- PAN Number
No requirement of:
- Letter of Recommendations
- Sanction Letters
- Udyog Aadhar
- MSME Certificate
- GST Certificate
Tax Holiday (Section 80IAC)
After getting recognition, a Startup may apply for Tax exemption under section 80 IAC of the Income Tax Act, 1961. Startups that are granted an Inter-Ministerial Board Certificate are exempted from income-tax for a period of 3 consecutive financial years out of its first ten years since incorporation
Eligibility Criteria (obviously other than being recognised by DPIIT) to avail the said Tax Holiday :
- Only Private limited or a Limited Liability Partnership is eligible for Tax exemption under Section 80IAC
- The Startup should have been incorporated after 1st April, 2016
Click here to fill and submit your application for Tax Holiday.
Don’t forget to keep the scanned copy of the following documents ready for uploading –
- Memorandum of Association for Pvt. Ltd. / LLP Deed
- Board Resolution (If Any)
- Annual Accounts of the startup for the last three financial years
- Income Tax returns for the last three financial years
Process After Applying
Refer to your Dashboard on the Startup India Portal for the status of your application. This can be found on the top right of the page after you log in.
For any follow up, queries or concerns, write to [email protected]
Angel Tax Exemption - Section 56(2)(viib)
Post getting DPIIT recognition a Startup may apply for Angel Tax Exemption by filing duly signed declaration in Form 2 to DPIIT {as per notification G.S.R. 127 (E)} to claim the exemption from the provisions of Section 56(2)(viib) of the Income Tax Act, 1961.
Eligibility Criteria (obviously other than being recognised by DPIIT) for availing the said exemption-
- Aggregate amount of paid up share capital and share premium of the Startup after the proposed issue of share, if any, should not exceed INR 25 Crore.
- Startup should not be investing in immovable property, transport vehicles above INR 10 Lakh, Loans and advances, capital contribution to other entities, except in the ordinary course of business.
Click here to fill and submit your declaration form.
You should receive an email for CBDT within 72 hours of submitting the declaration.
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