Start up India Scheme : A Government Initiative

The Government of India follows an unceasing pattern to make efforts to generate employment in the country, and for such purpose, various schemes have been introduced. Amongst such efforts, the “Startup India Scheme” has also been introduced to encourage new entrepreneurs to build their innovative projects.

Through the Startup India Scheme, innovative ideas can be converted into business ventures, increase employment opportunities, better standard of living, and improve the entire economy's market structure. So let us now have a look into the Startup India Scheme.

What is startup india scheme eligibility?

The following are eligible to avail benefits of the Startup India Scheme:

• The entity is incorporated as a Private Limited Company or registered as Partnership Firm/ Limited Liability Partnership (LLP).
• In any previous financial year, turnover should be less than rupees hundred crores.
• An entity will be a startup up to ten years from the date of its incorporation.
• The Startup should be involved in:

             1. Innovation
             2. Improvement of existing products/services/processes
             3. There should be potential to generate employment.
             4. There should be a perspective of wealth creation.

If an entity is instituted by splitting up/reconstructing an already existing business, it will not cover it under the "Startup".

What are startup india scheme benefits?

• Startups can self-certify the compliance for 3 Environmental Laws and 6 Labour Laws through an effortless online procedure.
• Startups can get an 80% rebate on the patent costs.
• The patent registration process is accelerated.
• The government makes the facilitator payment.
• Startups can gain exemption from income tax after gaining recognition, which is available for three consecutive financial years (out of the first ten years since incorporation).
• They may apply for Angel Tax Exemption.
• Startup India hubs have been established to provide incorporation, registration, grievance handling, etc.

Thus can observe that Startups recognized with DPIIT can avail several benefits in regards to registration, taxation, finance, and other services.

What is the procedure for getting registered as a startup under the startup india scheme?

Below is the step by step guide for gaining recognition under Startup India Scheme:

Step 1: Incorporate the business as a Private Limited Company/LLP/Partnership firm.
Step 2: Log on to the Startup India Portal.
Step 3: Enter the details of the Entity and fill in other details in the form available on the website.
Step 4: Upload the necessary documents.
Step 5: Select the option of tax exemption if required.
Step 6: Then Self-certification is required:

• The entity is a Private limited company/LLP/partnership firm.
• The entity must be registered/incorporated not before five years.
• The turnover must not exceed rupees 100 crores. 
• The entity is involved in innovation/making the existing system better.
• The entity is not made by splitting/reconstruction of an existing business. 

Step 7: A recognition number will be generated once the application is submitted. 
Please note that the registration certificate is issued after completing the verification of the application and documentation.