Register Your Business Under Startup India

The Startup India initiative has made a significant positive contribution to the nation's startup ecosystem. From 12,000 startups in 2016, the number grew to 128,000 by 2024, reflecting the rapid expansion of entrepreneurship in the country. This ongoing expansion has led to even more job opportunities, supported by government funding programs, regulatory reforms, and a favorable environment for innovation. The Startup India initiative continues to empower entrepreneurs, fueling both economic growth and employment in the country.

What is Startup India?

Introduced by the Government of India, Startup India is a revolutionary program aimed at sparking innovation and setting up a thriving ecosystem. From reducing regulations to providing an ample boost in funding opportunities and introducing expert mentorship to building connections with investors and potential customers, it aspires to revolutionize business growth as a whole. The result is bound to bring new employment and propel the Indian economy to unprecedented heights.

What is Classified as a Startup?

A startup refers to a newly established business founded by an individual or a group of people. Unlike traditional new businesses, startups are characterized by their focus on delivering unique products or services that set them apart in the market. Businesses meeting specific criteria are classified as startups and can access benefits provided by the DPIIT (Department for Promotion of Industry and Internal Trade).

Criteria for Startup India Registration

To qualify for registration under the Startup India scheme, businesses must meet the following criteria:

1. Entity Type: Eligible entities are only those who have been registered as a Private Limited Company, a Limited Liability Partnership, or a Partnership Firm. The sole proprietorship and public limited company is not eligible for the scheme.
2. Age Limit: The company should have been incorporated within the last 10 years. For startups in the biotechnology sector, this limit is extended to 15 years from the date of incorporation.
3. Turnover Cap: The annual turnover of the business should not have exceeded ₹100 crore in any previous financial year. Entities exceeding this limit are not eligible.
4. Focus on Innovation: Startups must focus on introducing innovative products, processes, or services leveraging technology or intellectual property. Simply imitating existing business models does not meet the eligibility criteria.
5. DPIIT Recognition: The business must secure recognition from the Department for Promotion of Industry and Internal Trade (DPIIT). This involves an online application process on the Startup India portal, based on self-declared compliance.
6. Legal and Financial Compliance: Startups must stick to applicable laws, including the Companies Act, Income Tax Act, and GST regulations. They must also maintain a dedicated bank account for the business, the details of which are required during the registration process.
7. Funding Eligibility: Businesses that have received financial support from angel investors, family, or friends can apply. However, those benefiting from other government schemes are excluded from this initiative.
8. Employment Generation: Startups should contribute to job creation or demonstrate the potential to generate employment opportunities, as promoting economic growth through workforce expansion is a key goal of the scheme.

Benefits of Registration Under Startup India

Registering your company under the Startup India initiative unlocks a range of advantages offered by the Indian government. These benefits are tailored to support startups in their growth journey. Some key advantages include:

1. Tax Exemptions:Startups can enjoy tax relief for three consecutive years under the scheme. This includes exemptions under Section 56 and Section 80IAC for Angel Tax Relief, significantly reducing the financial burden during the initial years.
2. Access to Government Funding:The Government of India has allocated ₹10,000 crore through alternative investment funds managed by the Small Industries Development Bank of India (SIDBI). Startups can apply for funding under this initiative to accelerate their growth.
3. Simplified Bankruptcy Process:In case the business doesn't perform as expected, startups benefit from an expedited winding-up process under the 2016 Insolvency and Bankruptcy Code. The process can be completed within three months, ensuring minimal hassle.
4. Tender Relaxation:Registered startups receive preferential treatment in government and PSU tenders. This includes relaxation in criteria such as turnover, Earnest Money Deposit (EMD), and previous experience, enabling startups to participate in public procurement opportunities.
5. Rebates on Patent and Trademark Filing:Startups receive an 80% rebate on patent filing fees and a 50% rebate on trademark filing fees, encouraging intellectual property registration at a reduced cost.
6. Self-Certification for Compliance:Startups can self-certify their compliance with various environmental and labor laws, reducing the administrative burden and allowing entrepreneurs to focus on business growth.
7. Networking Opportunities:The scheme facilitates connections with other businesses, industry leaders, and mentors, helping startups build a strong network. This can lead to collaborations, additional funding, or valuable guidance for scaling up.
8. Participation in Grand Challenges:Startups gain access to challenges hosted by renowned organizations like Mahindra, Aditya Birla, and WhatsApp. These competitions provide funding opportunities and help entrepreneurs showcase their solutions.
9. Access to Government Schemes:The initiative provides startups with opportunities to benefit from various government schemes, such as support for raw materials, bank credit, and financial assistance programs tailored to their needs.
10. Recognition and Growth Support:Startup India helps startups gain visibility, credibility, and support, allowing them to carve a niche in the competitive market.

Simplify Your Startup India Registration with KDP Accountants

There are two types of registrations for startups:

1. Registration with DPIIT under the start-up India Initiative.
2. Registration with Income Tax Department u/s 80-IAC of The Income Tax Act.

It is important to note that a tax holiday can be claimed by an eligible venture only if it obtains registration under the Income Tax Act. The benefits offered to a start-up registered venture u/s 80IAC of the Income Tax Act are as under:

Section 80-IAC implies that an eligible assessee who makes profits can claim 100% tax deductions for any three successive years out of its first ten years since incorporation.

Section 80-IAC of the Income Tax Act,1961 offers a tax incentive to companies or LLPs that are eligible start-ups involved in eligible businesses. It facilitates eligible startups claiming a deduction of 100% of profits and gains resulting from any entitled business engaged in innovation, development, improved products or services, or a scalable business model with a high potential for employment generation or wealth creation.

The above exemption can be available subject to the fulfillment of the terms and conditions as laid down in the Income Tax Act.

KDP can assist you with these registrations.

Why Choose KDP for Startup India Registration?

If you're looking to register your startup under the Startup India initiative and unlock a host of benefits, the process is easier with expert guidance. Registering under the Startup India Scheme can significantly enhance your startup's credibility, providing access to government funding, tax exemptions, and valuable support. However, the registration process requires careful attention to detail to ensure all requirements are met.

KDP Accountants offers specialized services to help you navigate the Startup India registration process with ease. Our team provides quick, affordable, and reliable assistance, ensuring your application is accurately completed and submitted. We handle all the paperwork and guide you every step of the way, making the registration process smooth and hassle-free. Contact us today and take the first step toward securing the benefits your startup deserves.

Frequently Asked Questions (FAQs)

What services do KDP Accountants offer for Startup India registration?
We provide end-to-end services for your Startup India registration. Our team assists you with the entire process, from account creation on the Startup India portal to filling out the application form, document verification, and submission. We ensure your application meets all the criteria, making the process quick and hassle-free.

How can KDP Accountants help in obtaining the DPIIT recognition certificate?
Our experts will guide you through every step required to obtain your DPIIT recognition certificate. From collecting the necessary documents to submitting the application, we ensure that your startup meets all the eligibility requirements and submits the application accurately, ensuring a higher chance of approval.

How long does the Startup India registration process take?
We aim to make the process as efficient as possible. While the registration process typically takes a few weeks, we assist you in submitting all necessary documents promptly and accurately, which helps in reducing delays. Our quick and reliable services ensure that your registration is done in a timely manner.

What documents do I need for Startup India registration, and how can KDP Accountants assist with them?
For registration, you’ll need documents like your incorporation certificate, PAN card, Aadhaar card, proof of innovation, proof of product or service, and proof of funding. We will help you gather, organize, and verify all the necessary documents, ensuring compliance with Startup India’s requirements.

Will KDP Accountants help me with additional services like patent filing or tax exemptions?
Yes, in addition to registration, we assist startups with related services such as filing for patents and trademarks, ensuring you receive the applicable rebates. We also help startups claim tax exemptions and guide them through the compliance process for better financial planning.