A step by Step Guide To Register A Startup Company in India
By Advocate Kohal Dev Sharma, Punjab and Haryana High Court, Chandigarh
The government of India launched an initiative in the month of January 2016 known as, Startup India. The government of India wanted to give a push to the ecosystem that supported innovation and start-ups in the country and so the initiative known as Startup India was born. The government of India wanted to uplift the economic development and increase the employment opportunities in India with the help of this scheme. In order to meet the requirements of this initiative the government also launched an action plan very recently.
A startup as the name suggests is a small business venture that is started with the sole objective to solve a problem in a particular field or niche. A startup generally has a single founder or several founders who operate it. Startups are started with an objective to provide services in a particular field which its founders believe are not available in the market or services that they feel have a great future. Not only are startups great for those who have small investments to start a business but are also a great way to generate income or provide job opportunities to people.
Startups and DIPP
The Department of Industrial Policy and Promotion or DIPP was set up in the year 1995 and today it governs all that concerns the industrial sector. DIPP operates under the Ministry of Commerce and Industry, Government of India. The development and policies of the industrial sector are taken care of by the DIPP.
Startups are registered under DIPP and there is proper process for that. First of all a business has to be incorporated which is in the form of either a Limited Liability Partnership or a firm or maybe a Private Limited Company. Next is the process of registering a startup with the department. It is a very easy process that involves filling up and uploading an online form on the Startup India website. The whole process in itself is quite simple and easy and is made such way by the government of India.
What are the documents required to be uploaded online in order to get a startup registered?
Well, as stated earlier, the process of registering a startup is very simple and there is hardly any fuss about it. However, there are certain formalities such as filling up and uploading a form online and uploading a few documents. The documents that are required for registration and have to be uploaded online are:
- Letter of funding which shall not be lesser than 20% in equity by incubation fund or angel fund.
- Incubators established in PG colleges in India.
- Supporting letter from one of the startups funded through the state of central government or an incubator recognised by the government of India.
- Patent if any filed and published in the patent journals.
- A description of your business involving the description of innovation of the product or services that you wish to offer.
- Certificate of incorporation of business.
Self-certifying the documents before uploading them for recognition is very important. If you have self-certified all the documents make sure that you have checked that your company is qualifying for being recognised as a startup. It should be fulfilling all the required conditions such as it should not have been incorporated for more than 7 years and can only be registered within 7 years plus the turnover must not exceed 25 crores and the product offered should not be copied and should be innovative.
Getting a recognition number.
Once all the formalities have been completed a company can be registered under the startup india initiative. Upon applying, a certificate of registration is given with a unique registration number. It has to be made sure that all documents are uploaded while taking due care because one mistake in filing or filing fake documents can cause a lot of problems and may result in fine.
The government of India is providing a lot of benefits to those who wish to launch a startup of their own. These benefits include tax benefits, no compliance with regard to environmental laws etc. for the first three years and many more. This initiative is for the betterment of the economy and for generating more and more job opportunities. This is why a lot of people are registering their startups and availing the maximum benefits that they can. It is a one of kind scheme that delivers a lot. If you wish to get your company registered under this initiative then you must ensure that you fulfil all the requirements otherwise you may end up losing rather than gaining from the initiative. A lot of care has to be taken while getting registered and once the startup is registered, there is no limit to the benefits that come along. Register a startup carefully and avail the maximum benefits today.
About the Author:
Kohal Dev, is a lawyer by profession and has a penchant for writing and his ability to juggle several tasks at a time, in the most effective and efficient manner is something that allows him to deliver content fresh out of the box. His extensive experience in the field of Law, Finance, Real Estate and Marketing allows him to write some of the most amazing blogs and articles in exactly the way they are required to be done. When not at work, he can be found reading and of course, writing.