Step-by-Step Guide: How to Register for Startup India

Updated on : Feb. 13, 2023 - 6 p.m. 17 min read.

What is a Startup?

A startup is a fresh business idea that is typically just getting off the ground. Startups are characterized by creative thinking, the potential for growth, and a readiness to take calculated risks in order to succeed. Fast growth and the development of a viable, profitable business model are typically the objectives of startups. To help them create their products, hire staff, and develop their brands, startups frequently receive funding from venture capitalists, angel investors, or other sources.

What is Startup India Scheme?

A key program the Indian government introduced in 2016 to promote and aid entrepreneurship in India is called the Startup India Scheme. The scheme's primary objective is to build a robust ecosystem in India that fosters innovation and startups. The program offers various advantages and incentives to startups to support their development and success.

The government offers numerous benefits and assistance services to startups under the Startup India Scheme, including:.

Tax exemptions: Startups can avail of tax exemptions under the scheme for a period of three years from the date of their incorporation.
Funds of Funds: The government has set up a Fund of Funds for startups (FFS) with a corpus of INR 10,000 crore to provide financial support to startups.
Simplified Procedures: The scheme provides for a number of simplified procedures for startups such as self-certification, single-window clearance, and fast-track patent examination.
Intellectual Property Rights (IPR) Support: The government provides assistance to startups in filing and protecting their IPRs.
Incubation Support: The scheme provides incubation support to startups through incubators recognized by the government.
Mentorship and Networking Opportunities: Startups can avail of mentorship and networking opportunities through the scheme’s network of mentors, incubators, and accelerators.
Access to Market: The scheme provides access to the market through a dedicated platform for startups to showcase their products and services.

The scheme is open to all Indian startups that meet the eligibility criteria set by the government. The scheme is continuously being updated and revised to better support and encourage entrepreneurship in India.

Eligibility criteria for Startup India registration

The eligibility criteria for startups under the Startup India Scheme are as follows:

Age of the company: The company must be less than 10 years old from the date of incorporation.
Nature of business: The company must be working towards innovation, development, deployment, or commercialization of new products, processes, or services driven by technology or intellectual property.
Turnover: The company must have a maximum annual turnover of Rs 100 crore in the preceding financial year.
Residency: The company must be registered in India. The majority of the promoter's shares must be held by residents, and at least one of the directors must be a resident.
Ownership: The company must not be formed by splitting up or reconstructing an already existing business.
Prior funding: The company should not have been funded by any government venture capital funds.
Sector: The company should not be engaged in any kind of speculative business, legal and medical services, sin or liquor, traditional handicrafts and small industries, and agriculture and agriculture-related activities.

Steps to Register Your Startup in India under Startup India

Step 1: Incorporate your Business

The first step to registering your startup in India is to incorporate your business. You will need to choose a business structure that best suits your needs. The most common business structures for startups in India are the private limited company, one-person company, limited liability partnership, and sole proprietorship. Each of these structures has its own set of requirements and benefits, so it is important to understand the differences and choose the one that is right for you.

Step 2: Register with Startup India

Second step to registering for Startup India is to create an account on their website. To do this, go to the Startup India website and click on the "Register" button in the top right corner. You will be asked to provide your name, email address, and a password. Once you have entered this information, click on the "Register" button to create your account. You will receive a confirmation email with a link to activate your account. Click on the link to activate your account and you will be taken to the Startup India dashboard. .

After setting up a profile on the Startup India website, startups can access a range of benefits and resources, including the ability to participate in acceleration and incubation programs, receive mentorship, and take part in challenges. The website also offers access to training programs, government initiatives, state-specific policies for startups, and pro bono services.

Step 3: Get DPIIT Recognition

DPIIT (Department for Promotion of Industry and Internal Trade) is the government body responsible for recognizing startups in India. To get DPIIT recognition, you will need to apply for recognition through the Startup India website. The recognition process involves an assessment of your business idea and business plan. The DPIIT will use the information provided in your application to determine whether your startup meets the eligibility criteria set by the government.

To initiate the recognition process, select the "Get Recognized" option. You will be directed to another page, scroll down to find the "Click here for submitting your application for recognition as a Startup" button, and click on it.

Step 4: Recognition Application

The recognition application process involves filling out an online form that requires you to provide information about your business idea, team, financials, market potential, and other relevant details. The application form will also require you to upload supporting documents such as your business plan, financial projections, and other relevant documents.

After entering all the sections of the ‘Startup Recognition Form’, accept the terms and conditions and click on the ‘Submit’ button.

Step 5: Documents required for Startup india Registration

The documents required for startup registration in India may vary depending on the type of business structure you have chosen. However, some common documents required for all businesses

GST registration certificate, and a bank statement.
Incorporation/Registration Certificate of your startup
Proof of funding, if any
Authorization letter of the authorized representative of the company, LLP, or partnership firm
Proof of concept like pitch deck/website link/video (in case of a validation/ early traction/scaling stage startup)
Patent and trademark details, if any
List of awards or certificates of recognition, if any
PAN Number

Step 6: Recognition Number

Once your startup has been recognized by the DPIIT, you will receive a recognition number. This recognition number is unique to your startup and serves as proof of your recognition as a startup in India.

Step 7: Other Areas

After you have completed the above steps, there are a few other areas you should consider for your startup. These include patents, design registration, trademarks, funding, and compliance with labour and employment laws.

Patents:

If your startup has a unique product or process, you may want to consider filing for a patent to protect your intellectual property.

Design registration:

If your startup has a unique product design, you may want to consider registering the design with the Indian Design Office.

Trademarks:

If you have a unique brand name or logo, you may want to consider registering a trademark to protect it.

Funding:

As a startup, you may need to raise capital to grow and scale your business. There are a number of funding options available to startups in India, including angel investment, venture capital, and government grants.

Compliance with labor and employment laws:

It is important to ensure that your startup complies with all relevant labor and employment laws, such as minimum wage laws, provident fund laws, and employee insurance laws.

Apply for various benefits and schemes offered by Startup India.

Once your business has been successfully registered with Startup India, you are eligible to apply for the program's various benefits and schemes. Tax breaks, access to finance and mentoring programmes, and networking possibilities with other businesses and investors are just a few of these advantages. You will need to submit extra paperwork and information about your company, such as financial accounts, business plans, and evidence of incorporation, in order to apply for these advantages. Before applying, make sure you carefully review the prerequisites for each benefit and programme to make sure you meet all the requirements.

By Amit Pawar

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