On January 16, 2017, Prime Minister Narendra Modi launched the ‘Startup India Initiative’. The initiative was launched to support entrepreneurs in India as new startups were blooming in almost all business sectors. The initiative gave budding entrepreneurs fresh hope since they perceived it as government support for their start-up companies.
The government released a notification on February 17, 2016, outlining startup India’s qualifying requirements in order to take advantage of the Start-up scheme’s incentives. The majority of firms are still unaware of the requirements and whether they are eligible for the plan or not, though, even today.
Connect with us for professional legal assistance if you need reliable advice on the requirements for startups in India.
To make it easier for young startups and businesses, we have compiled a complete guide on eligibility under the scheme.
Who Is Eligible To Get Registration Under Startup India Initiative?
According to their official website; to be eligible to apply for the Startup India Certificate:
1. startup must be a private limited company or registered as a partnership firm or a limited liability partnership
2. turnover should be less than Rs 100 crores in any of the previous financial years (from the date of application)
3. The startup company/firm /LLP must be equal to or less than 10 years old from the date of its incorporation
4. The startup should be working towards innovation or improvement of existing products, services, and processes. It should have the potential to generate employment or create wealth
It is also important to note that, an entity formed by splitting up or reconstruction of an existing business shall not be considered a “Startup”.
Now Your Next Question Will Be What Are The Benefits Of Registering With Startup India?
Starting a business is challenging as it is, so it’s always better to take all the help that comes your way. That is what the ‘Startup India Initiative’ is all about – helping entrepreneurs.
Getting your startup registered with Startup India has a host of advantages:
1. As a DPIIT-authorised startup, your company can apply for government tenders on the Government e-Marketplace, which is the Government of India’s largest e-procurement portal.
2. Registered startup with Startup India and DPIIT, your startup is eligible to get a tax exemption for 80-IAC of the Income Tax Act. All the eligible companies/firms can avail tax holiday for three consecutive years.
3. In addition to the above, recognised startups can also apply for exemption from angel tax under Section 56 of the Income Tax Act.
4. Easy access to government funding; As a part of Startup India, your company can raise money from the Fund – Fund for Startups (FFS) and companies looking for a seed round of investment can raise funding from Startup India Seed Fund Scheme (SISFS)
5. Also if your startup is recognised by DPIIT and you need to take an exit, it’s quite a simple process. A startup can shut down their business within 90 days from the date of application.
6. startups recognised with DPIIT is that they can process their patents and other intellectual property rights services at a considerably lower fee.
To know more about the Startup India Initiative, be it regarding the registration, eligibility criteria or any other legal help register, contact us for an expert consultation.