ADVANTAGES OF STARTUP REGISTRATION
Process of Registration
There are generally no compulsory registrations required to be taken by the Sole Proprietor. However, following voluntary registrations may be taken if the owner wishes to expand the business:
Startup is required to register by creating account on the Startup India portal
Basic details need to be filled on the portal for applying for the recognition under the startup India Scheme.
After filling the necessary details, the application needs to be submitted on the portal.
After satisfying, the recognition certificate is issued by the DPIIT.
Self-certified copy of the audited statements since inception of entity.
Income Tax Returns
Self-certified copy of income tax returns.
Copy of PAN Card
Copy of PAN Card of Entity.
Note on Business Model.
COI, MOA & AOA
Copy of COI, MOA & AOA.
PAN & Aadhaar
PAN & Aadhaar of directors.
MSME Registration Certificate
MSME Registration Certificate, if any.
Details of No. of Employees
Details of No. of Employees.
Details of IPR
Details of IPR, if any.
Details of Funding received
Details of Funding received by entity.
Email ID & Mobile No.
Email ID & Mobile No. for registration.
- Who should get this registration?
Startup satisfying the following conditions can apply for Recognition:
- Registered as Private limited company or Partnership Firm or LLP.
- Turnover should be less than INR 100 Crores in any of the previous financial years.
- An entity shall be considered as a startup up to 10 years from the date of its incorporation.
- 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 reconstruction of an existing business shall not be considered a “Startup”
- Why should you get this registration?
Entity should get itself registered for availing various benefits like self-certification, exemption from income-tax, angel tax
- exemption from income-tax, angel tax
- and reduced fee of patent & trademark etc.
How StartUp Movers can help you?
HOW STARTUP MOVERS CAN HELP YOU?
- Recognition under Startup India Scheme
- Availing Tax exemption under section 80 IAC
- Availing Tax Exemption under Section 56 (Angel Tax)
Frequently asked questions
Eligibility Criteria for Startup Recognition:
- The Startup should be incorporated as a private limited company or registered as a partnership firm or a limited liability partnership
- Turnover should be less than INR 100 Crores in any of the previous financial years
- An entity shall be considered as a startup up to 10 years from the date of its incorporation
- d. 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 reconstruction of an existing business shall not be considered a “Startup”
Eligibility Criteria for applying to Income Tax exemption (80IAC):
- The entity should be a recognized Startup.
- Only Private limited or a Limited Liability Partnership is eligible for Tax exemption under Section 80IAC.
- The Startup should have been incorporated after 1st April, 2016.
Yes. One Person Companies are eligible to avail benefits under the Startup India initiative.
In the case of labour laws, no inspections will be conducted for a period of 5 years. Startups may be inspected only on receipt of credible and verifiable complaint of violation, filed in writing and approved by at least one level senior to the inspecting officer.
- The Building and Other Constructions Workers’ (Regulation of Employment & Conditions of Service) Act, 1996
- The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979
- The Payment of Gratuity Act, 1972
- The Contract Labour (Regulation and Abolition) Act, 1970
- The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
- The Employees’ State Insurance Act, 1948
Startup after getting recognition a Startup may apply for Tax exemption under section 80 IAC of the Income Tax Act. Post getting clearance for Tax exemption, the Startup can avail tax holiday for 3 consecutive financial years out of its first ten years since incorporation.
Eligibility Criteria for Tax Exemption under Section 56 of the Income Tax Act:
- The entity should be a DPIIT recognized Startup
- Aggregate amount of paid up share capital and share premium of the Startup after the proposed issue of share, if any, does not exceed INR 25 Crore.
The certificate of recognition is issued typically within 4-5 working days upon successful submission of the application.
In the case of environment laws, startups which fall under the ‘white category’ (as defined by the Central Pollution Control Board (CPCB)) would be able to self-certify compliance and only random checks would be carried out in such cases.
- The Water (Prevention & Control of Pollution) Act, 1974
- The Water (Prevention & Control of Pollution) Cess (Amendment) Act, 2003
- The Air (Prevention & Control of Pollution) Act, 1981