Startup Registration in India
A company in its initial days is known as a Startup. By starting a company in India, you take your first step in the business world. After setting up a company, it comes under the category of startup for 10 years. To get the recognition, you must complete the online startup registration.
The Government of India has been offering assistance for making startup businesses grow through Startup India Scheme. This scheme has many benefits such as tax exemption, patent rebate, government funding, etc. and to avail these benefits, the startup needs to register under the Department of Industrial Policy and Promotion (DPIIT). The startup businesses must fulfill the eligibility requirements to obtain the certificate of a startup business.
What is a Startup?
A startup is a company that is in the early stages of development and creates some new creative ideas and products. In the starting, the startup is comprised of one or two entrepreneurs. Most small businesses tend to stay small but the startups aim to grow fast and make a place in the market.
These startups are based on a new idea and are created from the perspective of making the businesses more developed. So, the government helps them because of their innovative ideas. The government of India started a strong eco-system for nurturing innovation and startups in the country. It is for driving sustainable economic growth and generating large-scale employment opportunities that aim to empower startups to grow through innovation and design.
The objective of startup recognition is to reduce the regulatory burden on startups, and to allow them to focus on their core business, keep the compliance costs low and provide benefits.
What Does it Take to Become a Startup in India?
When you start a company that is just a budding venture, it is called a Startup. When you start a company in India, you take your first steps towards the business world. A Startup doesn't have access to a lot of finance. However, it has all the necessary ingredients of a recipe that can create a successful business:
- Dedication
- Innovation
- Courage
And based on these three factors, it can grow. However, the government has noted the potential of such budding companies. Therefore, you can now register a Startup in India under the many schemes of the government.
Benefits of Registering a Startup in India
Registering your Startup in India makes your business receptive to the many benefits of Startup business registration. Some of them include the following points.
1. Registration is Quite Intuitive and Simple
Unlike the business registration process in India, where the road is long, and the roadblocks are many, the Startup registration process is simple. It doesn't involve many steps; all you need to do is take your innovative approach towards your business and take the reins of the procedure. So, this intuitive registration of Startup in India makes it optimal for your business to get much-needed Assistance when you are just starting up.
2. Reduced IPR Registration Fee
Once you register a Startup company in India, certain IPR registration fees like patent and trademark registration are reduced. Conventionally, that means a reduction of the price of intellectual property registration services like copyright, design, patent or trademark registration by half. It will help you not only start your business but also protect your business identity after you are done registering a company in India.
3. Access to Various Government Funds
Government funds are readily available for a company registered as a Startup. It is because, in the eyes of the government, every Startup incorporated is one with innovative business and customer solutions standing at the forefront. Thus, the government of India has no issues putting money behind such registrations in India.
4. Tax Exemptions for the First Three Years
After a Startup is registered for the first three years, they are exempted from paying any income taxes. It is beneficial for those entrepreneurs choosing registration in India to gain some support from the government when their business is just starting. This form of incorporation of a company is especially beneficial for those who are yet to find confidence in these business entities.
5. Access to More Venture Capitalists
As the registration of a Startup in India helps an entrepreneur with several positive aspects, including fewer taxes and easy exit, venture capitalists aren't apprehensive about investing in a startup – especially if the business idea is innovative.
6. Access to More Venture Capitalists
As the registration of a Startup in India helps an entrepreneur with several positive aspects, including fewer taxes and easy exit, venture capitalists aren't apprehensive about investing in a startup – especially if the business idea is innovative.
There are many other advantages once you obtain the Startup certificate registration. But to know about them, you first have to find out whether you are eligible for registration for a Startup in India.
Types of Businesses that Can Obtain Startup Registration India
The government of India has not put any boundaries on which type of entities can register as a startup:
- Private Limited Companies: Private Limited Companies are India's most popular business entities – suitable for all types of enterprises. Since most entrepreneurs are inclined to get their business registered as a company in India, the government allows them to start a Startup company in India.
- Limited Liability Partnerships: Many wonder about the answer to the question – of how to register LLP in Startup India. The answer is – the same as how you would register your company as a Startup. The startup registration process has less to do with the business infrastructure and more with answering certain questions.
- One-Person Company: In rare cases, personal companies can also be registered as Startups in India. However, such business entities must be extraordinarily innovative.
- Partnership Firm: A Partnership Firm is a business entity incorporated under the Partnership Act of 1932. If your Partnership Firm has an innovative business, you can obtain Startup Firm Registration in India.
- Producer Company: Producer Companies can register their business as Indian Startups. Since the agricultural sector is a major contributor to our GDP, the government grants Startup registration online to a producer company without hassle.
- Public Limited Company: Public Limited Companies can also be counted as candidates for the Startup India initiative, provided they get registered in their early days.
- Nidhi Company: Nidhi Company is also permitted to obtain the Startup registration certificate in India.
Startup India registration for a proprietorship is impossible because the entity is not registered under government regulation. Thus, if you have a sole proprietorship firm that you want to incorporate as a Startup, contact us to convert it into a one-person company.