The startup ecosystem in India is finally maturing, and the government is doing its part to make things easier for business owners. Let’s face it, business owners already have it rough. They need to create a product, hire staff, win over customers, and maintain a healthy cash flow. So being suffocated by red tape is the last thing a company needs.
Therefore, in January 2016, the government launched the Startup India initiative on the orders of Prime Minister Narendra Modi. This program’s main objective is to promote the development and growth of startups in India.
The programme has also been a means of leveraging entrepreneurship for the expansion of the Indian economy as startup culture has gained popularity over the past several years. Startup India has contributed to expanding employment prospects since its founding, particularly for young professionals.
In this blog, we have prepared a comprehensive guide on how to register your startup under the Startup India scheme.
Step 1: Incorporate your startup
You must first incorporate your company as a Limited Liability Partnership, a Private Limited Corporation, or a partnership firm. You will need to obtain a Certificate of Incorporation or a Partnership Registration, a PAN number for your company, among other things, and the procedure is the same as for registering any type of business.
Step 2: Become a member of Startup India
This stage is really simple; in order to take advantage of Startup India’s benefits, you must register your entity as a startup under the scheme. Visit the Startup India website and complete the form there with the necessary information. You can then use your profile.
Step 3: Request DPIIT accreditation
Your startup will be able to benefit from things like tax exemptions, self-certification options, easy accessibility to patent applications and IPR protection, the ability to wind up a company quickly, simpler public procurement norms, access to Fund of Funds, and more by receiving recognition from Department for Promotion of Industry and Internal Trade (DPIIT).
To begin the DPIIT recognition certificate process, click the “Get Recognized” button on your profile.
Step 4: Get your recognition number
You will receive a recognition number as soon as your application has been accepted. Keep in mind that approval of all the documents you’ve supplied is an absolute requirement before the certificate of recognition can be issued. The procedure could take up to two days.
One must be very careful when completing the forms and uploading papers. A significant penalty may result from sending false papers or uploading faulty or irrelevant ones. You may be required to pay a minimum fine of $25,000 or up to 50% of the paid-up capital for your startup.
Step 5: Collect your registration certificate from Startup India
You can view your system-generated certificate of registration from your account on the Startup India website once you’ve received it in the mail. For convenience and future usage, you can also obtain the certificate from the Startup India portal.