Startup India Registration - Benefits, Eligibility, Documents Required, Process, Fees

The government of India launched the "Startup India Initiative'' to ensure that the growing number of Startups in the country have the right resources and support to grow. Under the Startup India program, eligible companies can get recognised as Startups by DPIIT to get tax benefits, easier compliance, IPR fast-tracking, special benefits & more.

Read about the Startup India Scheme benefits, registration process, required documents, and recognition fees for Startup India registration.

Benefits of Startup India Recognition

DPIIT recognised Startups are eligible to get the following benefits under the Startup India Initiative:

1. Self-Certification. Startups shall be allowed to self-certify compliance for 6 Labour Laws and 3 Environmental Laws through a simple online procedure to reduce the regulatory burden on Startups and keep compliance costs low.

2. Tax Exemption under 80-IAC. Pvt Ltd Companies and LLPs are exempted from paying income tax for three consecutive financial years under Section 80-IAC out of their first ten years since incorporation.

3. Easy Winding of a Company. As per the Insolvency and Bankruptcy Code, 2016, Startups with simple debt structures or those meeting certain income-specified criteria can be wound up within 90 days of applying for insolvency.

4. Fast-tracking of Startup Patent Applications. Patent applications filed by Startups shall be fast-tracked for examination to realize their value sooner.

4. Fast-tracking of Startup Patent Applications. Startups shall be provided an 80% rebate on patent filing costs to help them pare costs in the crucial formative years. The objective is to reduce the cost and time taken for a Startup to acquire a patent, making it financially viable to protect their innovations and encourage them to innovate further.

6. Easier Public Procurement Norms. DPIIT recognized Startups can register on GeM as sellers and sell their products and services directly to Government entities. It is a great opportunity for Startups to participate in the public procurement process and access another potential market for their products.

7. Exemption under Section 56. Investments into eligible Startups by Accredited Investors, Non-Residents, AIFs (Category I), & listed companies with a net worth more than ₹100 crores or turnover more than ₹250 crores are exempted under Section 56(2)(VIIB) of Income Tax Act. Also, consideration of shares received by eligible Startups shall be exempt up to an aggregate limit of ₹25 crores.

8. Panel of facilitators to assist in filing of IP applications.A panel of facilitators is empanelled to provide general advice on different intellectual property and information on protecting and promoting intellectual property in other countries.

The Central Government will bear the entire fees of the facilitators for any number of patents, trademarks, or designs that a Startup may file. The Startups have to bear the cost of the statutory fees only.

Eligibility for Startup India Registration

The prerequisites for Startup India recognition are as follows:

1. The Startup should be incorporated as a private limited company or a one person company or registered as a partnership firm or a limited liability partnership.

2. Turnover should be less than ₹100 Crores in previous financial years.

3. An entity shall be considered a Startup only if it has not yet completed ten years from the date of Incorporation.

4. The Startup should be working towards innovation/ improvement of existing products, services, and processes and should have the potential to generate employment/ create wealth. An entity formed by splitting up or reconstructing an existing business shall not be considered a "Startup."

5. An entity should not have been formed by splitting up or reconstructing an already existing business.

Startup India Registration Process

The procedure of registration under the Startup India Initiative is as follows: