Government of India of launched Startup India initiative on 16th of January, 2016 to build a strong ecosystem that is conducive for the growth of startup businesses, to drive sustainable economic growth and generate large scale employment opportunities. The aim of ‘Startup India initiative’ is getting materialized as more and more entrepreneurs are coming to form start ups over the years. Now as on date ( ie 13/07/2021) the number of startup registered under Department for Promotion of Industry and Internal Trade (DPIIT) is 52,179. This is a great mile stone indeed.
.An entity shall be considered as a Startup:
1. If it is incorporated as a private limited company or registered as a partnership firm or a limited liability partnership in India
2. Up to ten years from the date of its incorporation/registration
3. If its turnover for any of the financial years since incorporation/registration has not exceeded INR 100 Crores
4. If it is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation
5. An entity formed by splitting up or reconstruction of a business already in existence shall not be considered a ‘Startup’.
Government of India provides some benefits to recognized startups under the Startup India such as :
1. Self-Certification: Self-certify and comply under 3 Environmental & 6 Labour Laws
2. Tax Exemption: Income Tax exemption for a period of 3 consecutive years and exemption on capital and investments above Fair Market Value
3. Easy Winding of Company: In 90 days under Insolvency & Bankruptcy Code, 2016
4. Startup Patent Application & IPR Protection: Fast track patent application with up to 80% rebate in filling patents
5. Easier Public Procurement Norms: Exemption from requirement of earnest money deposit, prior turnover and experience requirements in government tenders
6. SIDBI Fund of Funds: Funds for investment into startups through Alternate Investment Funds.
One can get more details in Startup India Kit available at https://www.startupindia.gov.in/content/dam/invest-india/startup_kit.pdf.
We provides start up registration assistance vis- a-vis private limited company regsiatrtion , partnership firm registration and a limited liability partnership (LLP) registration in Kochi, Ernakulum.