Startups are currently becoming quite popular in India. The government has supported the Startup India effort to identify and promote businesses in order to encourage innovations and economic expansion. This plan aims to make India a nation that creates jobs rather than just seeks them out.
To be recognized under Startup India, an organization must be registered as a partnership firm, limited liability partnership, or private limited company. Only an eligible entity may register under the aforementioned scheme, and this can be done online at Startup India.
TABLE OF CONTENTS
- Certificate of Incorporation, MOA and AOA (if a company), and Partnership Deed (if an LLP or Partnership firm)
- Directors and Designated Partners List
- Contact information for partners and directors
- Details about Awards and Certificates (if received by an entity)
- information about investors and investment amounts.
- Information on the Registration of Intellectual Property Rights
- Website or the mobile application link
- Business Plan & Growth Plan for Udyam Registration & MSME Registration
For the startup to be eligible for the DPIIT Certificate of Recognition, it must meet the following requirements:
- Entity’s Period of Existence: From the date of creation, the company’s existence and operations should not last longer than ten years.
- Entity Type: The company that is incorporated as a Private Limited Company, a Limited Liability Partnership (LLP), or a Registered Partnership Firm is given the DPIIT Certificate of Recognition.
- Turnover each year: The company must have a yearly revenue of Rs. 100 crore for any of the fiscal years since its formation in order to receive the DPIIT Certificate of Recognition.
- The first entity: For the company registration in India, the company shouldn’t have been formed by dissolving or constructing a new version of an existing one in order to qualify for the DPIIT Certificate of Recognition.
- An entity that is Innovative and Scalable: The entity should focus on developing or improving a product, procedure, or service.
- The organization should have a scalable business plan with excellent employment and income development prospects. The business should be able to increase wealth or employment.
After receiving the DPIIT Certificate of Recognition for company registration, the startups can make use of the following advantages:
The company will be able to self-certify compliance with three environmental laws and six labor laws after it has received the DPIIT Certificate of Recognition for Startups.
Patent Application for a Startup
The DPIIT-recognised startups will be eligible for fast-tracking of a patent application and will only be required to pay 80% of the fees on patents, trademarks, copyrights, and designs.
Easy company dissolution
The 2016 Insolvency and Bankruptcy Code permits the firm to be dissolved 90 days after filing for insolvency.
Fund for Credit Guarantee
Through the National Credit Guarantee Trust Company or SIDBI, startups can obtain an Rs. 2000 crore Credit Guarantee fund over a period of four years.
Under the Startup India Scheme, a person, private limited company, partnership firm, or limited liability partnership may register. These companies must have an annual revenue of no more than 100 crores and be up to 10 years old as of the registration date. Such an organization ought to be focusing on the invention, creation, introduction, or commercialization of new goods, techniques, or services that are supported by intellectual property or technology.
Being a private limited company, a one-person business is qualified to be referred to as a “startup.”