What is a Startup?
A start-up is a newly established business, usually small, started by a group of 1 or so individuals. What makes it different from other new businesses is that a startup is not given a new product or service in the same way anywhere else. Keyword Novelty. The business also creates a new product/service or makes an existing product/service better.
Is Your Company A Startup?
Your company must meet the following criteria to be eligible for DPIIT startup accreditation.
The period of existence and operation should not exceed 10 years from the date of attachment.
Type of company
It must incorporate as a private limited company, registered partnership, or limited liability partnership.
It has an annual revenue of Rs. Should not exceed. 100 crore for any financial year since the incorporation.
The company should not have formed by splitting or restructuring an existing business.
Innovative & Scalable
It must have a scalable business model that is highly capable of promoting or improving a product, process, or service and/or creating wealth and employment.
Startup India Scheme
Start-ups are becoming very popular in India. Under the leadership of Prime Minister Narendra Modi, the Government of India has initiated and promoted Startup India, also an initiative to recognize and promote start-ups to improve the Indian economy and attract talented entrepreneurs.
Steps to register your start with Startup India Scheme
Step 1: Connect your business
You must first merge your business into a private limited company or a partnership company or a limited liability partnership. You must follow all the normal procedures for registering any business such as affiliation/partnership registration, PAN, and other required compliance certification.
Step 2: Register in Startup India
Then you need to register the business as a startup. The whole process is simple and online. All you have to do is log on to the Startup India website and fill out the form with your business details. Next, enter the OTP and other details that will be sent to your email, after entering these details like startup user type, name and startup status, etc., hence the Startup India profile is created.
Once your profile is created on the website, startups can access resources such as various acceleration, incubator/guidance programs, and learning and development programs, government programs, State Policies for Startups, and pro-bono services and apply to other challenges on the website.
Step 3: Get DPIIT Authorization
While after creating a profile on the Startup India website, the next step is to use the industry and industry commerce (DPIIT) accreditation enhancement portal. This recognition allows start-ups to gain access to high-quality intellectual property services and resources, such as relaxation of public procurement terms, self-certification under labor and environmental laws, and easy tweaking of the company, access to finance, the tax deduction for 3 consecutive years, and tax deduction for investment above reasonable market value.
Step 4: Application for accreditation
The ‘Authorization Application Details’ page opens. Click on ‘Details’ under the Registration Details section on this page. Fill in the ‘Initial Authorization Form’ and click on ‘Submit.
Step 5: Documents for registration
- Certificate of affiliation/registration of your start
- Details of the directors
- Evidence of opinion such as pitch tech/website link/video
- Patent and trademark details (optional)
- PAN number
Step 6: The authorization number
You will receive an authorization number for your startup immediately upon application. Certificate of Authorization will be issued after checking all your documents which is usually done within 2 days after submitting the details online.
However, be careful when uploading documents. If in subsequent verification, the required document was not uploaded/incorrect document was found to have been uploaded or forged document uploaded and then a minimum penalty of 50% of the capital you paid will be levied. 25,000.
Step 7: Other Areas
Patents, trademarks, and/or design registration: If you need a patent for your invention or trademark for your business, you can easily access it from the list of facilities provided by the government. You only have to accept legal fees, thus getting an 80% discount on the fee.
To provide financial support, the government has provided an initial fund of Rs. 2,500 crore and a total of Rs. 10,000 crore over a period of 4 years. This fund is like a fund, which means it does not invest directly in start-ups, but must participate in the capital of SEBI registered venture funds.