In today's world, start-ups are not only significant for a country's economic progress, but they
also play an important role in our daily lives. Example like Mobile apps such as Zomato,
Foodpanda, Swiggy, BookMyShow, Uber, and others have become necessary in meeting
our daily demands. If you need to recharge your phone, there is an app for that! You require
meals, and there are various platforms that exclusively provide food delivery! With their
incredible business strategies and unique approaches, these incredible start-ups have
revolutionised the globe.
However, there are many wonderful ideas out there that are still failing to make an impression on the world. This is due to their inability to identify a platform on which to execute their idea. Ever since the Prime Minister of the country, Narendra Modi, launched the Startup India program, there has been an incredible surge in the number of startups coming up. With the government's tax breaks, benefits, and support, an increasing number of people are starting their own businesses. The most interesting part is that the majority of the startups have young founders and owners, which says volumes about India's incredible creative minds.
Moreover, We have noticed that some people in India do not even know that their company comes under the category of a startup or not. Keeping all such things in mind, we have created a blog post to help you in this regard by explaining the eligibility criteria to be called a startup and the procedure to register your company as one.
Let's begin with the basics. A startup is a newly established business, usually small, started by a single person or a group of individuals.
• The start-up must be registered as a Private Company, LLP or Partnership
• The start-up must not be a product of restructuring
• The Startup must not be older than 5 years
• Annual turnover of the start-up must not be more Rs. 25 crores
• The business must be involved in a new product or service
• It must have a recommendation letter by an incubation.
• The firm should have approval from the Department of Industrial Policy and Promotion (DIPP)
To begin, you must incorporate your company as a Private Limited Company, a Partnership firm, or a Limited Liability Partnership. You must follow all of the standard steps for registering a business, such as getting a Certificate of Incorporation/Partnership registration, a PAN, and other mandatory compliances.
The next step is to register your company as a startup. The Startup India Scheme has made it extremely simple to register a startup, and you may do so from the comfort of your own home. All that is necessary is a login to the Startup India website and completion of the registration form. Details about the business must be submitted in the registration form, as well as the uploading of certain essential papers.
Incorporation/Registration Certificate: You need to upload the certificate of
incorporation of your company/LLP (Registration Certificate in case of partnership)
Description of your business in brief: A brief description of the innovative nature of your products/services.
Startups formed after April 2016 are exempt from income tax for three years in a row, for a total of seven years, as long as their annual turnover does not exceed Rs. 25 crores. However, in order to receive these benefits, they must be certified by the Inter-Ministerial Board (IMB). This will also assist start-ups in meeting their working capital requirements throughout their initial operational years.
• You have registered your new company as a Private Limited Company,
Partnership firm or a Limited Liability Partnership.
• Your business has been incorporated/registered in India, not before 5 years.
• Turnover is less than 25 crores per year.
• Innovation is a must – the business must be working towards innovating something new or significantly improving the existing used technology.
• Your business is not a result of splitting up or reconstruction of an existing business.
That’s it! On applying you will immediately get a recognition number for your startup. The certificate of recognition will be issued after the examination of all your documents.
Now that you understand the eligibility and registration criteria for a business, Enrol your company in the Startup Company Registration in Bangalore scheme and get all of the government's benefits. Power Of Factorial has empanelled the best startup lawyers across Bangalore. Get legal advice to resolve your query. Email us at firstname.lastname@example.org or call us at +91-81050 21287.