What is Startup India?

Startups are companies or endeavors that focus on one main product or service that the founders want to bring to market. These companies usually don't have a complete business plan and, more importantly, don't have enough money to go to the next stage of their operations. The founders of most of these businesses provide the initial funding for them.

The goals of the Startup India Movement are outlined below:

• Enhanced infrastructure, including incubation centres.

• IPR facilitation, including easier patent filing.

• The enhanced regulatory environment, which includes faster processes, simpler compliance, easier tax benefits, and better firm setup.

• To increase the funding opportunities.

• Provide a vast networking database for the entrepreneurs and other stakeholders in the startup ecosystem.

Eligibility Criteria

Startup India Registration is the recognition provided to startups by the DPIIT (Department of Promotion of Industry & Internal Trade). This recognition helps Startups avail the benefits of the Government’s Flagship Startup India Scheme

The startup must meet the following eligibility criteria to avail the DPIIT Certificate of Recognition:

• Period of Existence of Entity: The company's operations and existence should not go beyond ten years from the date of formation.

• Type of Entity: For a business that is incorporated as a Private Limited Company, Limited Liability Partnership (LLP), or Registered Partnership Firm, the DPIIT Certificate of Recognition is given.

• Annual Turnover: The company must have had an annual turnover of Rs. 100 crore for any fiscal year since its federation in order to avail the DPIIT Certificate of Recognition.

• Original Entity: To avail the DPIIT Certificate of Recognition, the company should not have been incorporated by splitting up or recreating an already existing entity.

• Innovative & Scalable Entity: The organization should be focused on creating or enhancing a process, product, or service.The organization ought to possess a business plan that is both scalable and highly conducive to generating income and jobs.

Advantages for Startups Recognized by DPIIT

After receiving the DPIIT Certificate of Recognition for Startups, the startups are eligible for the following advantages:

• Self Certification

  Following receipt of the DPIIT Certificate of Recognition for Startups, the organization will be allowed to self-certify compliance under 3 Environmental Laws and 6 Labour Laws.

• Start-Up Patent Application

  The DPIIT recognized startups wil have the option to expedite the processing of their patent applications, and will only be required to pay 80% of the fees associated with patents, trademarks, copyrights, and designs.

• Easier Public Procurement Norms

1. Startups that have been recognized by DPIIT will have the chance to list their product on the Government e-Marketplace.

2. Startups that have received recognition from DPIIT are not required to pay an earnest money deposit.

3. All Central Government ministries offer exemptions from prior experience and turnover.

• Easy winding up of Company

According to the Insolvency and Bankruptcy Code, 2016, the company can be wound up within 90 days of applying for insolvency.

• Funds of Funds

The Alternative Investment Funds will provide funds totaling Rs. 10,000 crore to the startups.

• Credit Guarantee fund

Through the National Credit Guarantee Trust Company or SIDBI, startups can access a Rs. 2000 crore Credit Guarantee fund over a four-year period.

• Tax Exemption

1. The startup may seek for tax exemption under section 80 IAC of the Income Tax Act after receiving the Certificate of Recognition.

2. Startups approved by the DPIIT are eligible to apply for angel tax exemption.

3. After obtaining the clearance for Tax exemption, the DPIIT recognized startups are exempted from income tax for 3 consecutive fiscal years out of its first ten years since formation.

Startup India is a Government led initiative which aims to create a robust environment for fostering innovation and startups in the nation in order to promote long-term economic growth and create a significant number of jobs. With the help of MFiling, registering your startup under the Startup India program becomes a hassle-free process. Let's explore what Startup India is all about and how MFiling can assist you in the registration process.

Procedure to get DPIIT Certificate

To obtain the DPIIT certificate of recognition, the entity must adhere to the straightforward steps listed below:

Incorporation of the Business

The business must first be incorporated as a Private Limited Company, Partnership Firm, or Limited Liability Partnership (LLP), as previously mentioned.

Contact Mfiling.com to initiate the registration of your business.

Registering Business with the Startup India Scheme

For the business to receive the DPIIT certificate of recognition, it must register with the Startup India Scheme.The business needs to be registered with the Startup India Scheme to get the DPIIT certificate of recognition.

Apply for Start-up Recognition

To obtain the DPIIT Certificate of Recognition for Startups, the applicant unit must register with Start-up India through the Start-up India Recognition portal

Fill out the Start-up Recognition application with the following information:

• Entity Details: Nature of Entity, Industry, Sector, Categories and Company Incorporation Number and Registration Date

• Full Address of the Entity

• Details of the Authorized Representative

• Information about the Directors or Partners

• Information about intellectual property rights

• Funding details

• Acknowledgment obtained by the organization

• Obtain your Startup Recognition Number

• Obtain your Startup Recognition Number

Following review of the application and supporting materials, the DPIIT Certificate of Recognition for Startups will be granted.

After the ministry approves the application and issues a unique startup recognition number the startup can register with tax benefits.

Documents Required

The following documents are needed to be submitted by the entities for recognition of Startup India by DPIIT

• Certificate of Incorporation

• Companies P.A.N. Card

• Director's Aadhar & P.A.N. card

• Passport-size photograph of the directors

• Website or companies profile deck (if available)

• Photo & video of products/services

• Authorization Letter

• Brief write-up on how the business is working towards:

1. Innovation in the industry

2. High potential for wealth creation

3. High potential for employment generation

Other certificates, if available:

• G.S.T. registration

• MSME registration

• Trademark registration

• Copyrights registration

Why Choose MFiling ?

Mfiling is a reliable partner when it comes to startups and companies looking to register and receive recognition under the Startup India program Mfiling streamlines the difficult process of gaining startup India recognition with our experience and comprehensive understanding of the regulatory environment. We offer comprehensive services that include helping you through the eligibility requirements and guaranteeing compliance with all regulations set forth by the Department for Promotion of Industry and Internal Trade (DPIIT),By choosing Mfiling, startups can navigate the bureaucratic hurdles seamlessly, allowing them to focus on their core business activities while reaping the benefits and incentives offered under the Startup India program.

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