Startup India Initiative:
Startup India: The Prime Minister of India, Shri Narendra Modi had this year in his Independence Day speech announced the “Start-up India” initiative. This initiative aims at fostering entrepreneurship and promoting innovation by creating an ecosystem that is conducive for growth of Start-ups. The objective is that India must become a nation of job creators instead of being a nation of job seekers. The Prime Minister of India will formally launch the initiative on January 16, 2016 from Vigyan Bhawan, New Delhi. The event will be attended by a vast number of young Indian entrepreneurs (over 2000) who have embarked on the journey of entrepreneurship through Start-ups. Following will explain you how to register startup Business?
Pre-requisites for Startup Registration:
What Qualifies the Startup: New Entity and Entity already in existence can be registered as startup. However Entity must be a private limited company incorporated under the Companies Act, 2013 or The Companies Act, 1956 or a Registered Partnership Firm. A proprietorship or a public limited company is not eligible as startup, However One person Company being Private Limited Company is eligible for startup recognition. A one person company, being a private limited company is entitled to be recognized as a ‘startup’. The entity if already in existence if want to be recognized as startup then its age should not be more than 5 Years. Entity should not have turnover in any financial year exceeding Rs. 25 Crore. Last but not the least entity should be working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
Recommendation Request: One of the important condition required for startup registration is that your startup should be recommended by Following:
- Recommendation (with regard to innovation nature of business), in a format specified by Department of Industrial Policy and Promotion, from any incubator established in post-graduate college in India; or
- Letter of support by any Incubator which is funded (in relation to the project) from Government of India or any State Government as part of any specified scheme to promote innovation; or
- Recommendation (with regard to innovative nature of business ), in a format specified by Department of Industrial Policy and Promotion, from any Incubator recognized by Government of India; or
- Letter of funding of not less than 20 percent in equity by any Incubation Fund/ Angel Fund/ Private Equity Fund/ Accelerator/ Angel Network duly registered with Securities and Exchange Board of India that endorses innovative nature of the business. Department of Industrial Policy and Promotion may include any such fund in a negative list for such reasons as it may deem fit; or
- Letter of funding by Government of India or any State Government as part of any specified scheme to promote innovation; or
- Patent filed and published in the Journal by the India Patent Office in areas affiliated with the nature of business being promoted.
This means that if any of the above mentioned organizations thinks fit that your startup is actually of innovative nature or they wish to invest in your company by way of equity of at least 20%. How to decide whether startup is of innovative nature is obviously a subjective matter and may decision may vary from organization to organization. If once your application is rejected by one organization then company may apply next time to another organization.
So if you are done with the all the formalities then you can go for registration of your startup.
Application can be made at startup India Portal i.e www.startupindia.gov.in which is startup India Portal solely dedicated for startup businesses. Then you have to go to Startup Recognition whereby you have to fill up the required details.
How to register startup business?
Details required will be as Follows:
- Entity Details Like its Constitution Status, Incorporation No, Incorporation Date, Name, PAN (Optional but recommended), Full Address etc.
- Details of Authorized Representatives Like Name, Designation , Mobile No, Email ID. Please note that Mobile number mentioned here will be used for sending OTP for successful registration, So double check the Mobile No and Email ID here.
- Then you have to give the details of No of Directors / Partners and their name with full address and mobile No.
- After this you have to attach the supporting documents for Nature of Recommendation letter from any of the organization explained above.
- Finally attach incorporation certificate in case of company or Partnership deed in case of partnership firm.
- Submit the application, OTP will be sent on mobile no of authorized representative, verify it and Voila…you are done.
A real time recognition number would be issued to your entity for availing benefits (other than tax and IPR). If your entity wants to enjoy the benefits of TAX and IPR then application will be forwarded to Inter-Ministerial Board for approval.
Happy registering startup…