How To Register A Startup Company In India?

How To Register A Startup Company In India?

A startup is a new business that is generally small and launched by a single person or a group. A startup is distinct from other new businesses in that it offers a one-of-a-kind product or service that is not accessible elsewhere. In India, startups are getting increasingly popular. It may appear that registering a startup in India is difficult, but it is not. The Indian government created the Startup India initiative to stimulate and relax startup compliance requirements. A simplified registration procedure allows these startups to focus on their core skills rather than being burdened by regulatory requirements. We have noticed an increase in the number of startup registrations in India since Prime Minister Mr Narendra Modi launched the initiative.

The steps to registering a startup in India are as follows: 

Step 1: Incorporate Your Business

To register a startup company, you must first register your firm as a Private Limited Company, Partnership Firm, or Limited Liability Partnership in India before establishing a startup. It can be done by completing all of the regular procedures for registering a new firm, such as getting a certificate of incorporation or a partnership deed, obtaining a Permanent Account Number, and satisfying other requirements. You can form a Private Limited Company or a Limited Liability Partnership (LLP) by submitting a registration application to the Registrar of Companies (ROC) in your region, and you can form a Private Limited Company or a Limited Liability Partnership (LLP). Along with the registration application, you must submit the relevant papers and fees to the Registrar of Companies or Registrar of Firms.

Step 2: Getting Involved in the " Make in India " Program 

The registration of your firm as a new venture is the next stage in the procedure. The Startup India Scheme has simplified the process of registering a business, and you can do it all online from the convenience of your own home. The whole process is so simple and done online. Go to the Startup India website to register a startup company. Startups may apply for different acceleration, incubator/mentorship programs, and other challenges on the website after creating a profile, as well as get access to resources like the Learning and Development programs by the government and policies announced for startups by the state.

Step 3: Submit documents in PDF format only.
  • In addition to the registration form, you'll need a letter of recommendation. You have to acquire any of these letters of recommendation listed below to register a startup company.
  • A letter of reference from an Incubator well-known in an Indian post-graduate college, in a format authorized by the DIPP.
  • A letter of reference from an Incubator well-known in an Indian post-graduate college, in a format authorized by the DIPP.
  • A recommendation letter from an incubator that the Government of India finances as part of any specific plan to stimulate innovation; 
  • A letter in DIPP format from any of the Incubators recognized by the Government of India.
Step 4: Obtain DPIIT Accreditation

Following the creation of a profile on the Startup India website, the Department for Promotion of Industry and Internal Trade (DPIIT) Recognition is the next stage. Startups can profit from this designation by gaining access to high-quality intellectual property services and resources, as well as easing public procurement requirements and self-certification under labour and environmental laws, access to funds, and exemption from tax for three years.

Step 5: Obtain the Identification Number

Once the applicant has self-certified, and the competent authority has authenticated the requisite documentation, a certificate of recognition will be issued. All of the papers uploaded must be correct. If an application uploads an erroneous document, the applicant will be penalized 50% of the Startup's paid-up capital or a minimum of Rs. 25,000. After receiving the recognition number, the applicant can submit for trademarks, patents, and design registration through any of the Indian government's facilitators.

The Advantages of registering a startup in India

Startups are becoming increasingly popular in India. The Startup India program, designed and funded by Prime Minister Narendra Modi's government, aims to inspire entrepreneurs to create more employment in the country. The Startup India project aims to build a thriving startup environment in India.

The purpose is to help entrepreneurs develop by harnessing technology and creativity. Entrepreneurs who start firms to promote growth and help the Indian economy are rewarded with a slew of benefits. The Startup India program offers a plethora of options to entrepreneurs looking to carve out a niche in a crowded industry. 

The Indian government provides the following startup registration incentives to entrepreneurs and company owners:

  • Take advantage of tax benefits

For the first three years, startups are exempt from paying income tax. In order to earn such benefits, startups must be approved by the Inter-Ministerial Board (IMB). IPR benefits are available to DIPP and Indian government-recognized startups without needing an extra certificate from the IMB. Furthermore, the government provides some tax relief on up-front investments that are worth more than their fair market value. It's perhaps one of the most obvious benefits of enrolling in the Startup India program. 

  • Getting a Loan and Opening a Bank Account

Another important aspect of startup registration is that it makes registering a company bank account easier and aids entrepreneurs in obtaining loans from official sources. A company bank account is one of a corporation's most valuable assets, which may be demonstrated by giving legal proof of registration.

  • Self-Assessment

Companies are more prone to failure in the early phases of their development. Startups can self-certify except for nine labour and circumjacent requirements. As a result, for the first three years after a company's founding, concerned officials and authorities will not undertake any investigation.

We live in a period where entrepreneurship and ingenuity are rewarded. These facts are supported by the Indian government's recognition and incentives for startups. When a startup is registered, it gains access to perks such as environmental and labour law compliance. Startups benefit from capital gains and investment tax exemptions. Startup registration also aids in the closure of firms within a ninety-day period. Startups also benefit from an 80% discount on patent filings and a plethora of financing alternatives.

 

Contact Us for Startup Fund raising servicesstartups valuation in Delhi, Noida, Gurgaon, and all across India: write to us at accounts@especia.co.in. Or Call On :(+91)-9711021268 +91-9310165114

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