Start-up is a company that can be formed when one or more founders have a potentially fantastic concept. The services that such firms offer are those that they believe are currently unavailable or of poor quality.

One of the most significant advantages of a startup is that it increases employment in a country as a direct result of new businesses being established.

The Eligibility Criteria For a Startup Registration In India 

What makes you a startup under the Startup India Program ?

• The firm has to be either a private limited company or a Limited Liability partnership.

• For the first ten years after Company registration, the company remains a startup. The Indian government has increased it from seven to ten years to provide enterprises with more chances and tax breaks in the long run.

• If the annual turnover does not exceed Rs 100 crore in any of the ten years, the company is still considered a startup. Once a company reaches this threshold, it is no longer considered a startup. The Indian government has raised the limit to Rs 100 crore from Rs 25 crore.

• The firm must have been approved by the Department of Industrial Policy and Promotion (DIPP).

• An Incubation Fund, an Angel Fund, or a Private Equity Fund should fund the company.

• A patron guarantee from the Trademark and Indian Patent office is required.

• The firm must come up with innovative ideas and creativity.

• All the details regarding the funding must be registered with SEBI (Securities and Exchange Board of India).

The Procedure of Registering a Startup in India

Incorporate Your Business

First and foremost, you must incorporate your business as a Limited Liability Partnership, a Private limited Company, or a Partnership organisation. You only need to follow the standard procedure, which involves completing a registration form.

Register Under Startup India

Then, you must register your company as a startup under the government's Startup India scheme. All you have to do is fill out the form on the Startup India website. You must complete all of the fields and upload a specified amount of documents.

Documents You Need To Upload In a Pdf Format Only

• You need a letter of recommendation along with the registration form. You can get any one of the following recommendation letters.

• A recommendation letter from an Incubator known in a post-graduate college in India, in a format approved by the DIPP. This is regarding the innovative nature of the business;

• A recommendation letter from an incubator that the Government of India funds as part of any specified scheme to promote innovation

• A letter from any of the Incubators, recognized by the Government of India, in DIPP format. 

• A letter of funding not less than 20% in equity, by an Incubation Fund, Private Equity Fund, Angel Fund, Accelerator, Private Equity Fund, registered with SEBI that endorses the innovative nature of business.

• A recommendation letter by the State Government or any Central Government of India.

• A patent filed and published in the Journal of Indian Patent Office in areas affiliated with the nature of the business being promoted. 

• Certificate of Incorporation.

• You need to upload the certificate of incorporation of your company or Limited  Liability Partnership, or the registration certificate or deed for a partnership company. 

• Your business description.

You need to mention if you need tax exemption

Startups in India are exempted from paying income tax for the first three years, but they must first be approved by the Inter-Ministerial Board (IMB). This criterion does not apply to companies that have registered with DIPP because registration is sufficient to get the benefits.

Self-certification of the following conditions

• You are a partnership firm, an LLP, or a private limited company.

• Your startup must be incorporated or registered in India, not before 5 years. 

• Your company's annual revenue must not exceed Rs 100 crore.

• The company must continue to come up with new ideas or improve the old system in its own unique way.

• Your company must be a new concept, not a division or reconstruction of an existing one.

Get your recognition number

You will receive an immediate identification number after submitting the startup registration form. Only once the authority has reviewed all of your uploaded documents will you receive a certificate of registration or incorporation. You must upload the data with caution, as any discrepancy might result in a large penalty of up to 50% of your paid-up capital, or Rs 25,000/- at the absolute least.

Now that you understand the startup registration and eligibility requirements, enrol your company in the Startup India programme to take advantage of all of the government's benefits. Online Legal India is one of the most trusted platforms and their experts make this whole process easy and seamless.

Conclusion

Startups are in trend right now, and it is one of the most popular business structures that an individual can go for. Online Legal India is one of the most popular online platforms for your startup registration in India.