Startup India is a flagship initiative of the Government of India, intended to build a strong ecosystem that is conducive for the growth of startup businesses, to drive sustainable economic growth and generate large scale employment opportunities.
Any entity having at least one registered office in India is welcome to register.
What Qualifies as a Startup under Startup India Scheme?
An entity shall be considered as a Startup:
1. If it is incorporated as a private limited company or registered as a partnership firm or a limited liability partnership in India.
2. Up to seven years from the date of its incorporation/registration; however, in the case of startups in the biotechnology sector, the period shall be up to ten years from the date of its incorporation/registration.
3. If it's turnover for any of the financial years since incorporation/registration has not exceeded INR 25 Crores.
4. If it is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation
Note: An entity formed by splitting up or reconstruction of a business already in existence shall not be considered a ‘Startup’.
What are the Benefit under Startups India Scheme?
The benefits provided to recognized startups under the Startup India initiative are:
1. Self-Certification: Self-certify and comply under 3 Environmental & 6 Labour Laws
2. Tax Exemption: Income Tax exemption for a period of 3 consecutive years and exemption on capital and investments above Fair Market Value
3. Easy Winding of Company: In 90 days under Insolvency & Bankruptcy Code, 2016
4. Startup Patent Application & IPR Protection: Fast track patent application with up to 80% rebate in filing patents
5. Easier Public Procurement Norms: Exemption from requirement of earnest money deposit, prior turnover and experience requirements in government tenders.
6. SIDBI Fund of Funds: Funds for investment into startups through Alternate Investment Funds.
2. Cross checking the documents
3. Registration on startup india.gov
4. Preparation of application online
5. Submission of application