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Startup India

Startup India is an Indian Government initiative that is intended to build a strong eco-system for nurturing innovation and startups in the country to drive sustainable economic growth and generate large scale employment opportunities.

Through this initiative, the government aims to empower Startups to grow through innovation and design.

Startup for Business

The objectives of the Startup India Movement are outlined below. The action plan envisages supporting the startups and more:

Enhanced infrastructure, including incubation centres.

IPR facilitation, including easier patent filing.

The better regulatory environment, including the tax benefits, easier compliance, improved setting up of a company, fastest mechanism and more.

A goal to increase the funding opportunities.

Eligibility Criteria:

Period of Existence of Entity:

The Period of existence and operations of the company should not exceed 10 years from the date of formation.

Type of Entity:

The DPIIT Certificate of Recognition is provided for the company which is incorporated as a Private Limited Company, a Limited Liability Partnership (LLP) or a Registered Partnership Firm.

Annual Turnover:

To get the DPIIT Certificate of Recognition, The firm should have an annual turnover of Rs. 100 crore for any of the fiscal years since its federation.

Tax Exemptions:

After obtaining the Certificate of Recognition, the startup can apply for Tax exemption under section 80 IAC of the Income Tax Act.

The DPIIT recognized startups can apply for Angel Tax Exemption.

After obtaining the clearance for Tax exemption, the DPIIT recognized startups are exempted from income tax for 3 consecutive fiscal years out of its first ten years since formation.

Procedure to get DPIIT Certificate

The entity should follow the below-mentioned simple steps to get the DPIIT certificate of recognition:

Step 1: Incorporation of the Business

As stated above, the entity must first incorporate the business as a Private Limited Company or a Partnership firm or a Limited Liability Partnership (LLP).

Step 2: Registering Business with the Startup India Scheme

The business needs to be registered with the Startup India Scheme to get the DPIIT certificate of recognition.

Step 3: Apply for Start-up Recognition

The applicant unit need to access the Start-up India Recognition portal for Register with Start-up India to get the DPIIT Certificate of Recognition for Startups.

Step 4: Get the Startup Recognition Number

The DPIIT Certificate of Recognition for Startups will be issued after examination of the application and documents submitted. Once the ministry approves the application and provides the unique startup recognition number, the startup can be registered with tax benefits.

Documents Required

1. Proof of Funding
2. Document of Awards
3. Patent Documents
DPIIT Recognized Startups

Advantages

Self Certification:

After obtaining the DPIIT Certificate of Recognition for Startups, the entity will be allowed to self-certify compliance under 3 Environmental Laws and 6 Labour Laws.

Start-Up Patent Application:

The DPIIT recognized startups are required to pay only 80% of the fees on Patents, trademark, copyrights and design, and the fast-tracking of a patent application will be available for startups.

DPIIT Recognized Startups

Disadvantages

Easier Public Procurement Norms:

The DPIIT recognized startups will get an opportunity to list the product on Government e-Marketplace.

Easy winding up of Company:

According to the Insolvency and Bankruptcy Code, 2016, the company can be wound up within 90 days of applying for insolvency