Startups in India require several government approvals and permits to launch their businesses. There are several steps to take to register a startup, including filing an INC-29 form. In addition, startup companies must register with the Indian Patent and Trademark Office (IPTO) and receive backer assurances from an angel or private equity fund. The startup process also requires submission of a proposal letter.
How to Register a Startups in India
INC-29 form
Startup India has several advantages over other startup registration processes. For one, it allows startups to self-certify that they comply with the labour laws and environmental norms. This means that a government inspector will not need to visit the premises unless there is a legitimate complaint. Another advantage of startup registration is that it offers up to 80% rebate on patent applications.
The INC-29 form must include all the necessary information for registering your company. This includes the accurate name of the company and the signatures of all the directors. It is also important to have a registered office address and proof of that location. This can be provided in the form of a sale deed, rental agreement or utility bill that is older than two months. In addition, if your business idea is based on a trademark, you must have a NOC from the owner of the trademark.
SIDBI’s corpus fund
SIDBI has launched a corpus fund for startups in India under the Startup India Initiative. The corpus fund, which is part of the Union Budget Allocation, contributes to the capital of SEBI-registered Alternative Investment Funds (AIFs) that are seeking to invest in new and promising startups. The government of India has earmarked Rs 600 crore for the fund in FY 2017.
The fund’s corpus is currently at Rs 500 crore and is expected to grow to Rs 600 crore in 2016-17. The Department of Industrial Policy and Promotion will monitor the corpus and review its performance in line with the Start up India Action Plan. The Small Industrial Development Bank of India is managing the fund’s day-to-day operations.
Tax-related benefits
Various tax benefits are available for startups that register under the Startup India scheme. These benefits can help the entrepreneurs get started on their business ventures. For instance, a startup can avail of a one-year tax holiday on the income tax. In addition, startups can also enjoy IPR fast-tracking benefits. Startup India is a government initiative that aims to boost innovation and job creation.
As of now, India has more than 61,000 recognized start-ups. With the new policy, the government is trying to streamline the regulatory and tax regime for start-ups. The last date to register is March 2022, but there are plans to extend this date by one year to March 2023.
Registration with DPIIT
When you want to become a startup, you need to register with DPIIT to be eligible for recognition. The DPIIT recognizes startup entities that are innovative and scalable, and have the potential to create a large amount of employment and wealth. The application process is easy and you can complete it in a matter of minutes.
Registration with DPIIT provides a range of benefits to start-up companies. First, it allows you to self-certify that you comply with six labour laws and three environment laws for five years. It also allows you to benefit from three years of tax exemption, as well as the best intellectual property services and resources.
