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The entrepreneurship community is brimming with stories of innovation and high spirits in India. The 2016 initiative by the government, Startup India, is a gigantic and robust growth engine providing an incubative framework to young businesses in the market. This comprehensive guide details the nuances of Startup India registration, including its different benefits, the step-by-step procedure involved the same, the necessary documents required, seetd funding, and tax exemptions.
Why Register under Startup India?
Registration under the Startup India initiative is like opening the door to a treasure chest of opportunities:
- Easy Online Sign-up: Time to bid adieu to bureaucracy! The Startup India scheme is perfectly user-friendly with a one-stop portal dedicated to hassle-free registration for your business.
- Financial Gains: Government funding schemes, relaxed norms for bank loans, and no tax levied for the first three years of the business operating in that period will be very important for any start-up to gain an early edge financially.
- Mentorship and Networking: You would connect with experienced mentors, incubators, and even industry experts who can help you navigate the plethora of challenges of being an entrepreneur.
- Faster Patent Approval: Safeguard your intellectual property with the fast-tracking of the patent application and fee rebates on your ideas
- Government Tenders: Greater ease of entry into government tenders, which is a huge market and a significant source of growth for you
- Regulatory Relief: Provides self-certification to reduce the regulatory burden on your young business regarding several labor and environmental laws
From Zero to Registered
- Laying the Foundation : Your business should be legal in form and can be any of the following: a Private Limited Company, a Partnership firm, or a Limited Liability Partnership.
- Accessing the Startup India Portal: Go to the website of Startup India. This is your one-stop shop for all facilities of Startup India.
- Submission of Application: Fill up the entire application form with relevant information about your startup, including legal name, sector to operate in, details regarding registration, etc.
- Upload Documents: Upload the documents required, primarily the Certificate of Incorporation of the company, PAN card, details of directors, draft and concise business plan, and proof of concept, if relevant.
- Self Declaration: Declare that your startup exists according to the eligibility criteria set by the Startup India policy
- Receipt of Identification Number: After successful validation of the application, you will receive an identification number, which means that you get officially registered under Startup India & have received a Startup India Certificate.
Required Documents
Considering the procedure, check whether you possess all such documents.
- Proof of Incorporation/registration: This document establishes and shows that your startup legal does exist.
- PAN Card: All your start-up’s Permanent Account Number, for the record, is to be maintained as it is required for any tax purposes.
- Director(s) details: The persons running your start-up
- Business Description/Plan: Closes description and plan of business that shall include your vision, mission, target market, revenue model, and everything else.
- Website URL (if in existence): If your start-up happens to have an online presence, enter the website URL.
- Proof of concept (video/ pitch deck/ website link): Evidence of the feasibility and potential of an idea, if possible, in a video, pitch deck, or a link to your website.
Seed Capital and Investor Relationships
The startups connect with potential investors through the Startup India platform to gain access to much-needed capital.
- Fund of Funds: The government has also set up a Fund of Funds for Startups (FFS), through which it will invest in other venture capital funds that are working actively to support promising startups to fuel their growth.
- Angel Networks: The Startup India initiative is connecting the right entrepreneurs with angel investors, who are early-stage funders and mentors for high-growth-potential startups.
Harvesting the Gains: Tax Exemptions
Among other alluring benefits of Startup India registration, the tax breaks they offer are one of the most awesome, for up to seven years from the date of its incorporation, subject to conditions, out of which it gets an income tax holiday for the first three years.
Angel Tax Exemption: Investment made by well-known angel investors is free from angel tax, therefore it motivates more investors to bet on your business.
Registration under Startup India is one of the most important steps that can be taken for an entrepreneur. It provides a nurtured ecosystem that simplifies cumbersome procedures and allows gates towards funding and growth opportunities. So, if your business idea is driving you, then take the plunge and register your startup today!
