If you have started a new business then you will have to register it to function legally. Unlike before, the registration process is much simpler now because of the Government of India initiative Startup India. India is the land of opportunities where starting up a new business is not a difficult task now as over 70 per cent of the work can be done online.
It takes some time in offline work but if you are prepared and know what the procedure is then nothing is difficult. Lets have a look at the conditions and steps to register a startup under Startup India Initiative.
Conditions under Startup India initiative:
Steps to register a startup:
Firstly, you will need a certificate of incorporation which you will get after you incorporate your business as a Private Limited Company/ Partnership Entity/ Limited Liability Partnership (LLP). There is no separate registration required for sole proprietorship startup as the existence will be certified by its GSTIN, Shops Establishments registration, etc.
Register your startup on Startup India website. Then fill up the form with the details of the business on their website. You will also need to submit the necessary documents in PDF format.
You have to upload three documents while submitting the registration form. The most important thing is that while uploading it is advised to cross-check all the documents so that there is no forge document. If any forge or wrong information is given by you then you will have to pay 50 per cent of paid-up capital and the minimum fine is Rs. 25,000.The documents need to be uploaded are:
Letter of recommendation
A letter of recommendation must state the nature of the business. Any incubator recognised under Government of India can issue the letter but the format must be specified as per Department of Industrial Policy and Promotion (DIPP). A letter of funding by any angel fund/ incubation fund of more than 20 per cent in equity will also do the trick but the fund must be registered with SEBI and letter must state the nature of the business.
The information is given in the first step on how to generate a certificate of incorporation.
Description of your business
You need to state how your business is bringing the innovative change in the economy and a summary about the business. A brief description is all that required.
Startup registered on this platform will get tax exemption for three years. In order to avail these benefits, it is necessary that startup must be certified with the Inter-Ministerial Board (IIMB). In case you are a recognised startup by DIPP Government of India then you can avail the benefits provided under this initiative without any certification of IIMB.
Once you have completed all the mentioned steps then all you have to do is wait. Your startup registration application will be processed and documents will be examined and if everything goes well you will get the certificate of recognition in no time.