Steps to Register your Business in Startup India Recognition & Questions asked with Pitch deck
Startup India scheme is supporting unique and innovative Ideas so if you have innovative idea you can register your entity under startup India scheme and then you can avail the benefits of the scheme
What is pre requisite for Registration as Startup?
a) First the New Entity needs to be set up in any 3 forms
1) Incorporated as a private limited company (as defined in the Companies Act, 2013) or
2) Registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or
3) Limited liability partnership (under the Limited Liability Partnership Act, 2008)
b) The Incorporation and Registration should not be older than 10 years. Entity formed by splitting up or reconstruction of an existing business shall
not be considered a ‘Startup’.
c) Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees
d) Entity 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.
What are documents or Information asked ?
The Entity once formed as per above guidelines, shall make an online application over the mobile app or portal set up by the DPIIT (Department for Promotion of Industry and Internal Trade)
The application shall be accompanied by—
(a) a copy of Certificate of Incorporation or Registration, as the case may be, and
(b) a write-up about the nature of business highlighting how it is working towards innovation, development or improvement of products or processes or services, or its scalability in terms of employment generation or wealth creation.
The DPIIT may, after calling for such documents or information and making such enquires, as it may deem fit, —
(a) recognise the eligible entity as Startup; or
(b) reject the application by providing reasons
Startup India: 80 IAC Tax exemption
Post getting recognition a Startup may apply for Tax exemption under section 80 IAC of the Income Tax Act. Post getting clearance for Tax exemption, the Startup can avail tax holiday for 3 consecutive financial years out of its first ten years since incorporation.
Eligibility Criteria for applying to Income Tax exemption (80IAC):
- The entity should be a recognized Startup
- Only Private limited or a Limited Liability Partnership is eligible for Tax exemption under Section 80IAC
- The Startup should have been incorporated after 1st April, 2016
Startup India: Tax Exemption under Section 56 of the Income Tax Act (Angel Tax)
Post getting recognition a Startup may apply for Angel Tax Exemption. Eligibility Criteria for Tax Exemption under Section 56 of the Income Tax Act:
- The entity should be a DPIIT recognized Startup
- Aggregate amount of paid up share capital and share premium of the Startup after the proposed issue of share, if any, does not exceed INR 25 Crore.
What is the Process to Apply Online for Startup Registration in DIPP
Following are the detail you need to keep handy before filing for Startup India Registration in Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India
1) Basic Details in the Form
a) Entity detail
b) Full Address office
c) Authorised Representative details
d) Director / Partner details like PAN, Address, etc
e) Start up Activities
2) What Four Question are asked which are compulsory for granting registration and knowing your start up
a) What is the problem the startup is solving?
b) How does your startup propose to solve this problem?
c) What is the uniqueness of your solution?*
d) How does your startup generate revenue?
The entity which is planning to get registered should prepare the answer to the above questions
3) Details of Patent, Copy Rights or any Intellectual Property Rights
If the entity has registered and got Patent, Trademark, Copyright, design or plant variety if the same is registered or applied and needs to provide application number
Further it needs to answer question if start up is creating an innovative product or service and if the business model is scalable with high potential of employment and wealth creation
4) The Entity needs to provide, Website Link, Investor Pitch Deck and Introduction Video links
5) Following is the sample Investor Pitch Deck which can be prepared for your startup
6) One the above information is provided in the form and submitted it takes usually 3 to 7 days to process and receive certificate if all the information is to the satisfaction of the authority and as per the rules framed by DIPP
7) Once your Startup recognized by the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India you receive following benefits
• Fast tracking and rebate on applications for Intellectual Property
• Access to Rs. 10,000 Crore Fund of Funds
• Self-Certification under Labour and Environmental laws
• Income Tax Exemption for 3 years
• Exemption on investments above Fair Market Value
• Government Public Procurement eligibility
• Faster Exit for Startups
• Startup India Hub – A one stop network for entire Startup ecosystem
In case you require professional guidance for your business assessment to apply for start up you can drop us email at info@facelesscompliance.com
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