StartupIndia Registration Process and Requirements
Startup means an entity, incorporated and registered in india
As a Private Limited Company or Limited Liability Partnership or Registered as a Partnership Firm.
With an annual turnover not exceeding Rs. 100 crore for any of the financial years since incorporation/registration.
Working towards innovation, development or improvement or of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.
An entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Startup’.
Shall not be more than 10 years old for Startup recognition OR not incorporated before April 2016 to claim Tax Exemption certificate.
An entity shall cease to be a Startup,
On completion of 10 years from the date of incorporation/registration.
If its turnover for any previous year exceeds Rs. 100 crore
Benefits of Startup India Recognition
Once your company get Startup recognition, you can further apply for Income Tax Exemption benefits available u/s 80IAC and U/s 56 relief for Angel Tax relief (Tax on Share Premium).
In many Tenders, Govt. and PSU gives relaxation for Startups to Participation in public procurement job through tenders. Relaxation in Prior experience, EMD or Turnover criteria.
Govt. Funding Opportunity
Government allotted Rs 10,000 crores funds for investment into startups through Alternate Investment Funds. SIDBI is managing this fund. Startups can apply under this quota.
Participate in various Govt. Scheme
Government issues day to day various schemes for startup to participate. For example, sustainable finance scheme, bank credit facilitation, raw material assistance, etc.
Participate Startup Grand Challenges
Many reputed companies encourage startup entrepreneurs for their solutions. Here gives an opportunity for startup to participate in the scheme and win funding. Recently, Whatsapp, Mahindra, Aditya Birla, many more companies organising such financial assistance scheme with Startup India.
IPR Govt. Fee Concession
In IPR Registration 50%-80% Govt. fee concession available. Example in Trademark, Patent application.
Eligible for Self-certification and compliance under 9 environmental & labour laws.
Easy Winding up
Windup company in 90 days under insolvency & Bankruptcy code 2016.
Search and find various startups and connect with them. Get Mentorship, connect with investors and industries.
GEM Portal Seller Registration and Bid
Startup India (DIPP) require for registration at GEM Portal of govt. https://gem.gov.in/
Documents Requirement for Startup India Recognition
Certificate of Incorporation / Registration Certificate and PAN
Email ID and Mobile number
Company Details ( Industry, Sector, Category, Regd. Office Address etc)
Directors/Partners Details ( Name, Photo, Gender, Mobile No. Email ID, Full Address)
Details of Authorised Representative ( Name, Designation, Mobile No. Email ID)
A Brief about business and products/services and notes on innovations
Revenue model and Uniqueness of the Product
Website/Pitch Deck/Video/Patent ( anyone)
Professional fee for Startup India Recognition
Startup India Recognition Filing
If you have Website
Startup India Recognition Filing + Website
If you do not have Website. Basic 3-4 page static site.
Pvt. Company/OPC/LLP Formation + Startup India Registration FIling+ GST + MSME + Website ( 3-4 page static site for DIPP regn.)
Tax Exemption Filing
Only Recognised Startups can apply | Professional Service fee for application filing
Our Service Package inclusion for Startup India Recognition
First, Get Consultation from our Consultant to know the eligibility requirements, documents and process of registration.
Once we collect your documents, Startup information and activities, our process starts to prepare your application as per norms of the DIPP.
based on the information provided by you, we prepare a write-up about the nature of business highlighting how it is working towards innovation, development or improvement of products or processes or services or its scalability in terms of employment generation or wealth creation.
Once your application is completed in all respect, we proceed to file your application with DIPP ( MInistry of Commerce and Industry).
We Track the application status and update Client time to time.
Once the department examine and approve your application, your Registration Certificate is Issued and send on email by department
The whole process takes approx 2-3 working days.
DPIIT ( Department for Promotion of Industry and Internal Trade) ( earlier DIPP) under Ministry of Commerce and Industry is the approval authority of Startup recognition. We at FinTax not responsible for any adverse decision of the authority.
Startup India Tax Exemption Certificate U/s 80-IAC of Income Tax Act
As per Revised Rule vide Notification dated 11th April '2018 issued by Ministry of Commerce and Industry ( Department of Industrial Planning and Promotion) -
A Startup being a Private Limited Company or Limited Liability Partnership (LLP) incorporated after 1st April 2016 may, for obtaining a certificate for the purpose of section 80-IAC of the Income Tax Act, make an application in Form-I along with documents specified theirein to the Board and the Board may after calling for such documents or information and making such enquires, as it may deem fit -
i) Issue Tax Exemption Certificate.
ii) Reject the application by providing reasons.
Startup India Tax Exemption Certificate U/s 56 (2) (viib) of Income Tax Act (Angel Tax)
As per Revised Rule vide Notification dated 11th April '2018 issued by Ministry of Commerce and Industry ( Department of Industrial Planning and Promotion) and subsequently amended on 19th February 2019-
A Startup being a Private Limited Company or LLP recognised as Startup shall be eligible to apply for approval for the purpose of Section 56(2)(viib) of the Income Tax Act ( popularly known as ANGEL TAX), if the following conditions are fulfilled:-
(i) the agreegate amount of paidup share capital and share premium of the startup after the proposed issue of share capital does not exceed Rs 25 crores.
(ii) the investor/proposed investor, who proposed to subscribe to the issue of share of the startup has
a) the average returned income of the Rs 25 Lakhs or more for the proceeding three financial years, or
b) the networth of Rs 2 Crores or more as on the last date of the proceeding financial year, and
(iii) the startup has obtained a report from a merchant banker specifying the fair market value of share in accordance with rule 11UA of the Income Tax Rule, 1962.
(iv) Benefit available for 10 years.
APPLICATION & APPROVAL PROCESS:-
The application for approval under this para shall be made in Form-2 to the Board and shall be accompanied by documents specified therein.
And Board may after calling for such documents or information and making such enquires, as it may deem fit -
i) Grand approval for the purpose of Section 56(2)(viib) of the Act, specifying the relevent details, including details of investors, amounts of premium on which shares are to be issued and the latest date by which the shares are to be issued;
ii) Decline to grant the said approval after providing reasons.
FAQs on STARTUP INDIA Recognition Certificate
Why do you need FinTax Corporate Professional's service ?
Our Professionals possess deep exposure in preparing application and write-up. It helps you smoothly file your application with DIPP.
Is FinTax Corporate Professional works in pan India for clients?
Yes. We do serve our clients PAN India from our Branch Offices and Associate Startup Consultants in Major Cities.
For startup India registration, we manage to do centrally from Delhi NCR Office.
Can a Foreign company registered in India eligible for Startup India Registration?
Yes. Provided the Company incorporated in India and fulfil all Specified criteria to become eligible for registration.
What is the validity of Startup Recognition Certificate?
upto 10 years from the date of incorporation/registration or
valid till Its turnover in any previous year does not exceeds Rs. 100 crores.
Which ever earlier.
Is Tax Exemption is attached by default with all Startup Recognition?
No. As per recent notification dt 11.04.2018, to claim Tax benefit/Exemption under income tax act, you need to apply separately after getting your startup recognised.
How long it takes to get Startup India Recognition Certificate issued?
Normally it takes 2-4 days.
Who is the authority to issue Startup Recognition Certificate?
Startup Recognition Certificate issued by Ministry of Commerce and Industry ( Department for Promotion of Industry and Internal Trade)