Start-Up  India is a flagship initiative of the Government of India, intended for building a strong ecosystem that is conducive to the growth of Start-Up businesses and generation of large-scale employment opportunities. The Government, through this initiative aims to empower Start-Ups to grow through innovation and design.

Several programs have been undertaken since the launch of the initiative on 16^th of January, 2016, for transforming India into a country of job creators instead of job seekers, which results in sustainable economic growth.  These programs have catalyzed the Innovative Start-Up culture and now many entrepreneurs can avail the benefits of starting their own business in India under the Start-Up Initiative.

TO WHOM/WHERE WE APPLY TO GET START-UP RECOGNIZED?

DEPARTMENT FOR  PROMOTION OF INDUSTRY AND INTERNAL TRADE

(DPIIT) is the apex authority in India to certify eligible Private limited

Companies, LLPs, and Registered Partnerships as Start-Ups under the Start-

Up India initiative. DPIIT is the monitoring agency under the Ministry of Commerce & Industries and the Small Industries Development Bank of India

(SIDBI) is the operating agency for the FUND OF FUNDS FOR START-UP (FFS).

WHAT ARE THE BENEFITS PROVIDED UNDER THE START-UP SCHEME?

• Self-Certification.

After obtaining recognition for Start-up, the entity will be allowed to self-certify compliance under 3 Environmental Laws and 6 Labor Laws.

• Intellectual Property Protection.

The DPIIT recognized Start-Up can avail up to 80% rebate on Patent. Trademark, copyrights and design, and the fast-tracking of a patent application will be available for Start-Up.

• Easier Public Procurement Norms.

Earnest Money Deposit Exemption and Prior Experience/Turnover limit exemption can be availed.

• Easy winding up of Company.

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

• Credit Guarantee fund.

The Start-Up can avail Rs.2000 Cr Credit Guarantee fund through the National Credit Guarantee Trust Company or SIDBI over 4 years.

• Tax Exemptions

After obtaining the Certificate of Recognition, the Start-Up can apply for Tax exemption under section 80 IAC of the Income Tax Act.

The DPIIT recognized Start-Up can apply for Angel Tax Exemption under Sec. 56 (ITA).

After obtaining the clearance for Tax exemption, the DPIIT recognized Start-Up are exempted from income tax for 3 consecutive fiscal years out of their first ten years of incorporation.

WHAT ARE THE QUALIFICATIONS REQUIRED FOR RECOGNITION?

• Entity should not be older than ten years from the date of incorporation.
• Entity should be incorporated either as a private limited company or a registered partnership firm or a limited liability partnership.
• Annual turnover should not surpass INR 100 crores for any of the previous financial years.
• Entity should not have been formed by splitting up or reconstruction of an already established business. A new entity must be formed.
• Entity should be working towards innovative business, development or improvement of products or processes or services, or it should be generating employment and creating the wealth for the economy.

WHICH ALL DOCUMENTS ARE REQUIRED FOR RECOGNITION?

• Certificate of Incorporation of the entity/firm.
• The Proof of Funding in case the Start-Up received any funding in the past (Bank Statement, Partnership deed).
• A brief description of the nature of the business containing details of how the Start-Up is working to bring innovation, the development of products and services and the scalability of the Start-Up in terms of wealth and employment generation.
• Authorized Signatory Appointment letter.
• Mobile Number & E-Mail Id.

WALK-THROUGH THROUGH THE REGISTRATION PROCESS

Step 1: Registration of business – INCORPORATION.

Step 2: Preparation of necessary documents & organization of mandatory documents required for filing the application.

Step 3: Drafting of application details such as Nature of Entity, Industry, Sector, Categories Company Incorporation Number, etc.

Step 4: Details of Authorized Representative will be uploaded.

Step 5: Details of funding of business will be disclosed.

Step 6: Final Submit of Application

EXEMPTED LABOUR LAWS & ENVIRONMENT LAWS:

• The Building and Other Constructions Workers’ (Regulation of Employment & Conditions of Service) Act, 1996
• The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979
• The Payment of Gratuity Act, 1972
• The Contract Labour (Regulation and Abolition) Act, 1970
• The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
• The Employees’ State Insurance Act, 1948
• The Water (Prevention & Control of Pollution) Act, 1974
• The Water (Prevention & Control of Pollution) Cess (Amendment) Act, 2003
• The Air (Prevention & Control of Pollution) Act, 1981.

The process of registration of start-up may seems difficult but we, the qualified GCS Consultants Team can help your business in availing hustle free recognition. 

For more details, leave us a mail to [email protected]