The Startup India Scheme was introduced by the Indian government to promote entrepreneurship and increase employment.
The Indian government's flagship programme, Startup India, encourages creativity and entrepreneurship in the country. The goal of the Startup India programme is to promote an entrepreneurial culture, develop an environment that is supportive of startups, and establish job opportunities.
The programme was introduced on January 16th, 2016, and includes a Startup India Center, Simplification and Guidance of Regulations, Funding Support and Incentives, Industry-Academia Partnership and Incubation, among other features.
The Startup India Scheme is a game-changer for the Indian startup ecosystem. It has created a conducive environment for innovation and entrepreneurship, and has helped countless startups turn their dreams into reality.
In this Blog we are going to discuss about Startup India Scheme, Eligibility Criteria for Registration under Startup India, Detailed Registration Process under the program, various benefits under Startup India and Success stories
A startup is defined as the following:
Provided, however, that such entity is not formed by the division or reconstruction of an existing business.
An entity ceases to be a Startup ten years after its incorporation/registration or if its turnover for any previous year exceeds INR 100 Cr.
The Startup India Scheme, a project of the Indian government, was launched in 2016. The advancement of status, the creation of jobs, and building future oriented business are the main objectives of this government Programme.
Numerous initiatives have been started under Startup India to build a strong startup environment and make India a nation that creates jobs and same is monitored by Department for Industrial Policy and Promotion (DIPP).
The Indian government wanted to enable startups to grow through innovation and design, thus it created this initiative. Learn more about the Startup India Scheme's main advantages, eligibility requirements, and registration process.
Startups must be registered as Private Limited Company (Pvt. Ltd) under the Indian Companies Act, 2013, Limited Liability Partnerships (LLP) under the Indian Limited Liability Partnership Act, 2008, or Partnership firms under the Indian Partnership Act, 1932 in order to apply for Startup India Programme.
Please see the attached notification for more information (Click Here).
To benefit from the Startup India Scheme, a company must acquire clearance from the Inter-Ministerial Board set up by the Department of Industrial Policy and Promotion. To obtain approval, the business must submit an application to verify the document's inventiveness.
Start by incorporating your company as a Limited Liability Partnership or Private Limited Company. Get the certificate of incorporation/partnership registration, the Pan, and any other necessary compliances by following all the registration requirements.
Now is the time to enroll your startup in the programme. The procedure is simple to finish and can be done online.
After logging in, complete the form on the Startup India website. Next, enter the OTP that was sent to your email along with other important startup details like the kind of users, name, and stage.
After creating a profile on your website, you can submit applications for various acceleration, incubator/mentorship programmes, and other challenges. Additionally, you'll get access to free services, government initiatives, and resources including the Learning and Development Program State Policies for Startups.
Utilizing Department for Promotion of Industry and Internal Trade Recognition is the next step. With this designation, startup businesses can benefit from a variety of advantages, including easier access to Fund of Funds, relaxation of public procurement regulations, self-certification under labour and environmental laws, and tax exemption on investments that are beyond fair market value.
Click the Get Recognized button to receive DPIIT Recognition if you are a new user. Click Dashboard and DPIIT Recognition if you are already registered.
Click the View Details button in the Registration Details section of the Recognition Application page once it has opened. Fill out the Startup Recognition Form now, then press the Send button.
You will receive a recognition number for your startup right post application. Following the proper review of all papers, which typically takes 2 days after submitting the information online, the certificate of recognition is provided.
You must submit the document with caution. If it is discovered during the verification that the required document was not uploaded, the incorrect document was posted, or a fraudulent document was uploaded, you will be compelled to pay a fee equal to 50% of your startup's paid-up capital, with a minimum fine of Rs. 25,000.
The Startup India Scheme offers a wide range of advantages to companies. The Startup India Scheme's list of advantages is as follows:
The startup is more prone to failure during the early stages of incorporation. They were constantly faced with the challenge of defending their survival against outside threats, such as government regulations. Thanks to the Startup India Initiative, which loosen sup some stringent restrictions to give founders a buffer against such turmoil. Startups are allowed to self-certify with nine labour and environmental rules under this programme.
The government gives names of trademark and patent facilitators as part of the Startup India Scheme, which is another fantastic benefit. They provide affordable, high-quality intellectual property right services, such as quick patent checks. Only the statutory costs are due from the corporation; all facilitator feeds are covered by the Government of India. This means that the cost of obtaining a patent is reduced by 80% for startups.
Taxes are not applied to firms registered under the Startup India programmes. They are granted access to this facility for the first three years. Incubators are exempt from paying taxes on investments that are worth more than the going rate. Additionally, under this programme, investments made by angel investors are also exempt. When a startup receives a tax break for the first three years or reaches a specified threshold, it can use all of the proceeds for business expansion.
A corporation had to have prior experience or a minimum turnover in order to apply for a public procurement. Things have changed today. Equal possibilities for established businesses and startups have been made possible thanks to Startup India, startups now have easier access to public procurement.
In addition to all of these, Startup India offers enormous benefits for research and innovation. The project supports those who want to start their own business by encouraging research and innovation. There are plans to establish seven new research parks. These parks will make sure that new businesses have access to all the facilities they need for the research and development of their distinctive goods and services.
Government initiatives typically have larger budgets and greater financial incentives. But due to intense competition, it is quite challenging to obtain, particularly for new businesses. However, the Startup India Scheme offers incentives to companies so they can get government contracts. Companies are eligible to submit bids for these without needing any prior expertise
The Startup India programme gives startups a venue where they may communicate with other startup stakeholders at a particular time and location. These gatherings take place twice during every festival. These festivals take place both nationally and internationally.
There are several successful startups that have benefited from the Startup India Scheme and leveraged the benefits to grow their businesses. Here are some examples:
Overall, the Startup India Scheme has helped several startups in India to overcome challenges and grow their businesses by providing them with access to funding, mentorship, networking opportunities, and regulatory support, among other benefits.
The Startup India Scheme was introduced by the Indian government to promote entrepreneurship and increase employment. By providing a foundation for new entrepreneurs, it promotes innovation and research activity. You must benefit from this programme if you intend to launch your own business or if you already have one up and running.
Hopefully, you found this post helpful and make your business successful with this guide.
For any doubt or questions, feel free to contact Jordensky. Our team is always there to answer your confusions.
At Jordensky, we specialize in Accounting, Taxes, MIS, and CFO services for Startups and Growing business and are focused on delivering an experience of unparalleled quality. When you work with Jordensky, you get a team of finance experts who take the finance work off your plate – ”so you can focus on your business.”
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