How to register a startup company in India

  • October 23, 2024
  • Update date: December 21, 2024
  • Dushyant Sharma

The 21st century is the age of innovation and creativity. Many innovative and creative minds come up with remarkable business ideas and register startup companies to turn their ideas into realities. These business ideas include creating content for educational purposes, offering freelance courses, sustainable fashionable products, health and wellness apps, and so on. Some startups take it up a notch and come up with innovative ideas no one’s ever thought of before. We’re sure you must’ve seen tonnes of them on Shark Tank or your favorite social media platforms.

If you want to turn your startup ideas into reality, the first step is to get startup registration in India. Allow us to help you out on your startup journey, so we can ensure your company’s success.

Understanding Startup Registration 

Startup registration is an Indian government initiative that provides benefits and support to newly established startup companies. To apply for this scheme, the applicant must go through an online application process established by the Department for Promotion of Industry and Internal Trade (DPIIT). Once the application for startup registration is approved by DPIIT, the DPIIT certificate of recognition for startup is issued. 

This will allow the business to operate legally and connect it to resources and support systems. It will also open doors to tax benefits, and greater credibility with clients, angel investors, venture capitalists, banks, etc. 

Benefits of Startup India Registration

If you’re planning to register a startup, then you might be interested in knowing the following startup registration benefits: 

  • One of the best advantages of startup registration is that startups can receive tax exemptions under Section 80 IAC of the Income Tax, 1961. Certain eligible startups can also get angel tax exemption under Section 56 (2) (viib). From 1st April, 2025 onwards, all startups will be exempt from angel tax in India as this tax will finally be abolished. 

  • Startups in India can also get assistance with intellectual property rights through the Scheme for Facilitating Start-Ups Intellectual Property Protection (SIPP). This scheme helps startups file IP applications with the help of facilitators. 

  • Startups can connect with a network of resources and support systems such as 

  • They can connect with several resources and support systems through networking, joining incubators, and teaming up with other entrepreneurs

  • After having obtained DPIIT registration for startups, businesses can apply for grants and subsidies from the government. They can also seek venture capital funding. 

Types of Business Structures for Startups

Start-up founders can be overwhelmed by all the legal information available on the internet. There’s a lot of business requirements which must be fulfilled by startups. One of them is choosing the business structure or model for the startup. 

To make it easier, we have listed out all the legal business models and explained them briefly for you so you can easily make out which one’s most suitable for your startup business:

Sole Proprietorship

This business is owned and operated by one person known as the sole proprietor. Sole proprietorship is a good choice for entrepreneurs who want to begin their business journey with minimum or low investment. 

Partnership

It is one of the most common ways to start a small business along with other individual(s) known as partners. A minimum of two partners must enter into a partnership agreement to form a partnership firm. Unlike in case of sole proprietorship where the entire responsibility of running the business lies with the owner, the responsibilities in a partnership firm are split between all its partners.

Limited Liability Partnership

Limited liability partnership offers the benefits of partnership firm but with limited liability protection. This means the personal assets of a partner are not at risk in case the LLP faces any debt or losses. Learn Why LLPs May Be the Perfect Fit for Your Business.

Private Limited Company

It is a popular choice for the Indian startups as it allows them to issue their shares to those who invest in their business. For instance, if an angel investor invests in a startup company, they will get a certain amount of its shares.

Public Limited Company

A startup registered as a public limited company can raise capital through public offerings of shares through IPO. This can allow the startup company to increase its operations, buy new equipment and lead the business towards growth.

Each business structure has its own advantages and legal requirements. So choose wisely!

Documents Required for Startup Registration

To register your startup in India, you'll need several essential documents. Make sure you have these ready to streamline the process:

  • Company Incorporation/Registration Certificate

  • Digital Signature Certificate (DSC)

  • Duly filled MCA forms

  • Director Identification Number (DIN) 

  • Address Details

  • Directors or Partners details

  • Copy of Aadhar card

  • PAN (Permanent Account Number) 

Step-by-Step Guide to Registering a Startup in India

Here is a detailed startup registration process for registering a startup in India:

Obtain a Digital Signature Certificate

The first and foremost step is to obtain a digital signature certificate. The DSC is required for all filings with the MCA. Therefore, obtaining this certificate prior to company incorporation is necessary.

Apply for DIN

DIN full form is Director Identification Number. A director identification number is a mandatory requirement during company registration. To apply for DIN when incorporation a new company, SPICe eform must be filed. Some documents to support DIN application include a copy of bank statement, driving license, electricity bill, etc.

Reserve a Unique Name 

You must select the name of your startup company which is unique in nature. To reserve a unique name, you must visit the official website of MCA and log onto the portal. Then, you must fill out a name reservation application with the proposed company name and then file it along with prescribed fees. To confirm the submission, an acknowledgement mail will be sent. Once the name is approved, an approval letter will be received by you.

File for Incorporation with MCA

Now, it’s time to file for incorporation with MCA once you have reserved a unique name for your startup company. You must fill out forms depending on the kind of startup you want to register. For a new company, file form 1, form 18 and form 32. In case of LLP, file eForm 2. You must use DSC to sign the eForm and pay the required startup filing and registration fees. Also, you must send a physical copy of MoA and AoA to the ROC. Once your startup has been registered, you will receive a certificate of incorporation.

PAN & TAN Application

PAN is required for not only people, it is also required for businesses, partnerships and other entities. Your company requires a pan card as it serves as your company’s tax identification. In India, whether your company is formed in India or overseas, you are required to obtain a business PAN. Additionally, your company must also obtain a TAN which is issued by the Income Tax Department. It is used as a unique identifier for businesses responsible for deducting or collecting tax at source.

Register with Startup India

Once the company has been incorporated with MCA, it must register under Startup India. It is a completely online process through Startup India portal. For registration, the startup must file an applicant along with all the necessary documents.

Get DPIIT Recognition

To obtain advantages like self-certification, IPR application, tax exemption under 80IAC, and the relaxation of company and public procurement regulations, DPIIT recognition is essential. All necessary paperwork must be included with the application for startup registration. The documents must be in the proper format. After submitting an application for recognition, you will receive the certificate of recognition online. 

Startup India Initiative & Government Support

Startup India in India Government’s flagship initiative. It is intended to boost the startup culture and build a strong and inclusive environment for innovation in the country. Startups can receive financial support through the Startup India Seed Fund Scheme (SISFS) for proof of concept, prototype development, product testing, market entry, and commercialization. The Startup India portal is where qualified startups can apply for the program. 

Eligible startups can also apply under TIDE 2.0 scheme which provides fellowship/grants to technological firms in fields such as robots, blockchain, and artificial intelligence. Through the Scheme for Facilitating Start-Ups Intellectual Property Protection (SIPP), the startups in India can receive help with submitting Intellectual Property (IP) applications and receive a rebate on statutory fees. To learn more about government support for startups, you can connect with our consultants at Registrationwala. 

Our Assistance

To achieve entrepreneurial success, establishing a startup is of utmost importance. With the right professional guidance and preparation, you can register a startup in India smoothly and focus on building your business!

Our consultants at Registrationwala provide end-to-end solutions to open a startup in Delhi. We will help you throughout the process of registering startup business, including in application filing, content development for answering startup questions, company incorporation and following up with the startup department. To be a part of the startup India scheme, reach out to startup registration consultants at Registrationwala now!

Conclusion

If you have innovative or creative business ideas that can change the world, then you should definitely consider startup registration. The Government of India actively offers support and subsidies to startups registered under Startup India Scheme. For assistance in registering a startup, connect with Registrationwala!


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Dushyant Sharma
Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.

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