How to Register a Startup Company in India?

 

With government tax breaks, rewards, and assistance, an increasing number of people are starting their businesses. The most intriguing aspect is that the majority of the startups have young entrepreneurs and operators, which speaks volumes about India's unbelievable brilliant minds.

Because they did not have the government's support previously and had to do everything on their own, not many people got involved wholeheartedly. However, since the startup India registration program's inception, people have become more courageous, knowing that the government will support them throughout the registration for startup India process, and as a result, they are coming up with new ideas.

What exactly is a startup India Registration?

A startup is a business handled by a small group of people that addresses the problems. Such companies are formed when the entrepreneurs identify flaws in the existing system in which they have been working and aim to address the issues by forming their own company. In addition, a startup can be formed when the founder(s) come up with a conceivably brilliant idea. The services that such startup offer is those that they believe are of poor quality or do not exist at all.

The most important feature of a startup is that it increases employment and income as a direct result of more and more businesses opening up. With the prospect of more employment options, the Indian government has attempted to assist young companies in growing and thriving in the Indian market. The Startup India Registration initiative assists you in innovating and improving economic sustainability.

How to Register a Startup Company in India

• Incorporate your company

First and foremost, you must incorporate your company as a Private Limited Company, Limited Liability Partnership, or Partnership firm. To obtain registration, simply follow the standard procedure, which includes filling out a form.

•  Register with Startup India

You must now register your firm or company as a startup in the government's Startup India scheme. You simply need to fill out the form on the Startup India website. You must fill out all of the details and upload a certain number of documents.

•  Documents must be uploaded in PDF format only

·        A letter of recommendation is required in addition to the registration form. You can obtain any of the recommendation letters listed below.

·        A recommendation letter from an Incubator known in an Indian post-graduate college, in the DIPP-approved format.

·        A letter of funding from an Incubation Fund, Private Equity Fund, Angel Fund, Accelerator, and Private Equity Fund registered with SEBI that endorses the innovative nature of the business.

•  You must specify whether or not you require tax exemption

Startup registrations in India are exempt from paying income tax for the first three years, but to qualify, the company must be certified by the Inter-Ministerial Board (IMB). Companies registered with DIPP are exempt from this requirement because mere registration entitles them to the benefits.

•  Self-certification of the conditions listed below

·        You are a private limited company, a limited liability partnership, or a partnership firm.

·        Your company must be incorporated or registered in India within the next five years.

·        Your company's annual revenue cannot exceed Rs 100 crore.

·        The company must continue to innovate something new or improve the existing system in its unique way.

·        Your business must be a new concept, not a division or reconstruction of an existing one.

• Obtain your identification number

When you apply for the registration for startup India, you will immediately receive a recognition number. Only after the authority has reviewed all of your uploaded documents will you be issued a certificate of registration or incorporation. You must exercise caution when uploading the data, as any errors can result in a massive fine of up to 50% of your paid-up capital of Rs 25,000 at the very least.