Startup Company Registration
Startup Company Registration, A startup or start-up is a company or project begun by an entrepreneur to seek, develop, and validate a scalable business model. Since the Prime Minister of the country, Narendra Modi, launched the Startup India program, there has been an unbelievable flow in the number of start-ups coming up.
With tax exemptions, benefits, and help provided by the government, more and more people are creating a company of their own. The most fascinating thing is that a majority of the startups have young founders and owners, which speaks volumes about the incredible creative minds that India has.
Startup India Eligibility Criteria
- The firm has to be a private limited company or a LLP.
- The company remains a Startup for the first 10 years, post the date of registration. In the recent past, the Indian government changed that to 10 years from 7 years to give opportunities and tax exemptions for the companies for a longer run
- The company remains a Startup if the turnover per year does not cross the Rs.100 crore mark in any of the 10 years. Once the company crosses the mark, it no longer remains eligible to be called a Startup.
- The firm should have approval from the Department of Industrial Policy and Promotion (DIPP)
- The firm should be funded by an Incubation Fund, an Angel Fund or a Private Equity Fund
- A patron guarantee from the Indian Patent and Trademark office is necessary
- You must have a recommendation letter by an incubation
- The firm must come up with innovative ideas and schemes
- All the details regarding the funding must be registered with SEBI (Securities and Exchange Board of India)
Benefits of Startup India Scheme
Self-Certification under Labor and Environmental Laws: Startups are allowed to self-certify their compliance under six labour laws and three environment laws. this is often allowed for a period of 5 years from the date of incorporation of the entity.
Tax Exemption for 3 Years: The profits earned by the recognized Startups having granted inter-ministerial board certificate are exempted from tax for 3 consecutive years.
Tax Exemption on Investment Above Fair Market Value: has inter – ministerial board certificate and receives consideration from the difficulty of shares exceeding the face value of such shares.
Easy completing of Company: Startups also referred to as means firms are often aroused within 90 days as against 180 days for other companies.
Startup application and IPR Protection: Startup India provides top quality property services and resources to assist Startups protect and commercialize their IPRs.
Relaxation publicly Procurement Norms: So as to satisfy quality and technical specifications all government of India departments, ministries and PSUs are given authority to ease the norms with regards to public procurements.
SIDBI Fund of Funds: The govt of India has put aside a corpus fund of Rs. 10,000 crores. This fund is managed by SIDBI and is meant to supply equity funding support for the event and growth of innovation driven enterprises.
Documents Required for Startup Company Registration
Pan Card & certificate of incorporation
Directors Identity proof
Directors Adders Proof
Registered Office Adders Proof
No Objection Certificate (NOC)
Uniqueness of the Products
A Brief About Business
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