1. Blog
  2. >
  3. Policy
  4. >
  5. Legal & Compliances
  6. >
  7. How To Register As...

How To Register As A Startup Company In India? Registration Benefits & Documents Required

Startup Registration Process in India

Many people have ideas, but only a few know how to start a business or transform their concept into a viable venture. However, it is effortless to register a startup in India, and even you can do startup registration after reading this article. Furthermore, some people are unsure whether or not their business qualifies as a startup. As a result, this blog post will assist you in this respect, outlining the criteria for being classified as a startup and the startup registration process for listing your business as one.

Benefits of Startup Registration in India

In India, startups are getting increasingly popular. The government, led by Prime Minister Narendra Modi, has launched and supported the Startup India initiative and wants to encourage entrepreneurs to generate more employment in the country. The Startup India project aims to create a robust ecosystem that promotes startup growth.

Startup India is a program launched by the Indian government to help people with a viable concept start their companies. Indian Prime Minister Narendra Modi first announced the campaign on August 15, 2015, during a speech. The authorities define a startup as a company based in India which was founded less than ten years ago with annual revenue of not more than ₹100 crores (US$14 million).

Free Power Kit

Learn more about – What Is Startup India Scheme? Know The Scheme Details, Eligibility Criteria And List Of Advantages

The goal is to enable entrepreneurs to grow by leveraging innovation and technology. Many perks are granted to entrepreneurs who create businesses to foster growth and support the Indian economy. The Startup India initiative provides many opportunities to startups that want to establish their niche in a competitive market.

The following are some of the startup registration benefits the Indian government offers to entrepreneurs and business owners –

1. Tax Exemption

For the first three years, a startup operating under the startup India scheme is exempted from paying taxes. In addition, cash received from incubators and angel investors is also excluded from taxation. The three-year tax exemption implies that a startup can invest the money however they choose and utilize it to expand their firm. In addition, the government offers some tax relief on up-front investments that exceed fair market value. It is most likely one of the most apparent advantages of registering under the startup India scheme.

2. Obtaining a Loan and Bank Account

Another critical feature of startup registration is that it facilitates opening a business bank account and helps entrepreneurs obtain loans from formal resources. One of the most significant assets of a corporation is a business bank account, which may be shown by presenting legal proof of registration. One of the additional advantages of business or startup registration is that you can obtain a quick loan from lenders and investors as a registered company.

3. Self-Certification

In the early stages of a startup, companies are more vulnerable to failure. With the exception of nine labor and circumjacent rules, startups are allowed to self-certify. As a result, concerned officials and authorities will not conduct any probe for the first three years of a company’s inception.

4. Tenders from the Government

Government programs are based on the likelihood of evolution as well as monetary incentives. Due to the high level of competition, every company cannot secure tenders from the government. However, as a self-certified startup, companies will be ranked higher on the priority list when authorities give out tenders, helping a startup to establish itself better in the market.

Startup Registration Process – Registering as a Startup Company

Step 1: Incorporate Your Company

For startup registration in India, you must first register your company as a Private Limited Company, Partnership Firm, or Limited Liability Partnership. Business owners can accomplish it by following all the standard steps for registering a startup business, such as acquiring a certificate of incorporation or a partnership deed, obtaining a Permanent Account Number, and meeting other prerequisites. Depending on the nature and scale of your firm, you may require legal assistance when you first start.

Learn more about – What Is The Procedure For Incorporation Of Company In India? Know The Step-By-Step Process

Step 2: Getting Involved in the Startup India Program

The next step in the startup registration process is to register your company as a new venture. The Startup India Scheme has made registering a business simple, and you can do it all online from the comfort of your own home. Logging into the Startup India website and completing the startup registration form is all that is necessary. You must submit the firm’s details and upload all the required documents to register your startup.

Step 3: Keep these Documents Handy

  • Check the status of any online or offline journal you’ve submitted.
  • Letters from the state or federal government, if they assisted you, or any government-approved incubator.
  • A letter of funding with a minimum equity contribution of 20%
  • Add your business’s details to the certificate of incorporation.

Step 4: Avail Tax Advantages

Startups are free from paying income tax for the first three years. Startups must, however, be certified by the Inter-Ministerial Board in order to receive such incentives (IMB). DIPP and the Indian government-recognized startups are eligible for IPR advantages without requiring an additional certificate from the IMB.

Step 5: Self-Certification

The firm must self-certify the following conditions:

  • The business is set up as a Limited Liability Partnership (LLP) or a Private Limited Company (PLC).
  • The company was established in India at least five years ago, and its annual revenue has never exceeded ₹100 crores in any of the years it has been in operation.
  • The company was founded on an original concept rather than a pre-existing company.

Learn more about – What Is Limited Liability Partnership? Step-By-Step Process Of LLP Registration

Step 6: Get the Recognition Number

A certificate of recognition will be granted once the applicant has self-certified and the relevant authority has validated the necessary documents. It is imperative that all the uploaded documents are valid. If an incorrect document is uploaded, the applicant will be fined 50% of the Startup’s paid-up capital or a minimum of ₹25,000. Once the applicant has received the recognition number, they can file for trademarks, patents, and design registration through any government of India’s facilitators.

Conclusion

Any startup registration in India has gotten quite simple if we compute it from the beginning to finish. The government has done a lot to strengthen the economy, from startup registration to incubation support, government funding, and tax breaks. The government is assisting in developing a bright future for Make in India and preventing brain drain to foreign countries by making the Indian landscape more attractive for teeming startups.

Related Read About –

We are a team of serial entrepreneurs, corporate professionals and business experts, at MSMEx.in

Succeed Online With Highly Effective Business Tips and Tricks

Do you want to scale your business even further than it is today? You are at the right place.

We provide Premium Online Learning for Small to Mid-Sized Businesses.

We are MSMEx, an experienced MSME edtech company with highly qualified staff to help companies grow in their industry and attract more visitors online. Whether you are struggling to gain a competitive edge online or are working on bringing your business online, we are here to assist you.

Learn powerful tips and tricks, customized especially for your business to suit its specific needs. All you need is to create a website to get started. We will help you and your employees learn everything about the internet and how things work to bring your business to the limelight.

How MSMEx Sessions Benefit Businesses?

The sessions of MSMEx are beneficial for businesses of all kinds and scales. We help them leverage the power of the world of the internet and also solve all their queries and doubts. You get expert help, if you are ever stuck with the scalability of your business.

You may be doing great online, but it's always better to learn more about things better. Learning experiences provided by us are enjoyable and beneficial at the same time. Grow your business and soar high without limits.

MSMEx will help you connect with your audience, understand their pain points, and earn more revenue than ever you have expected.

If something is working for your competitor, it doesn't need to work for you as well. You very well know that every business is different, and so are its needs. Hence, we work closely with our clients to know and understand their processes and custom-make solutions that work out for them.

Why Learn From MSMEx Experts?

The lessons we provide to businesses are curated to match their needs, preferences, and operations. With years of experience in creating industry experts, we take pride in the services offered. Learning is a never-ending process, and with the world of the internet evolving each passing day, there is an ocean full of things you need to learn.

Discover what you can do for your business by spending half of what you are doing now. Several companies have opted for the sessions provided by our experts, and they have unlocked more significant benefits that were beyond their imagination.

We teach several aspects of business operations and how a business can do a lot more than what it is doing today. We will help you craft the roadmap of your business' success.

Why is MSMEx Different?

We conduct live sessions for businesses to understand the course content in depth. We also allow them to connect with the lecturers in case of doubts. The pillars of our company conduct interactive sessions to give valuable insights.

We also have e-books for business leaders to unlock the full potential of the world of the internet.

Learn from a team of serial entrepreneurs, business experts, and corporate professionals who have made efforts in their journey to success. We teach business owners and other aspirants the tricks to be focused on growth to drive their business forward.