Diversification in the number of fields in which humans can prosper into has ultimately resulted in a handsome amount of startup companies, as a healthy competitor to the globe. The emergence of a novel idea for a business will be of no use when let shattered away just because of the legal procedures to attain to get your startup into reality.
The ease of India with which it can accept and develop startups is just like a piece of cake, as one can notice a huge number of startups budding out there.
Startup India initiative by Government of India in 2016 holds a pool of resources for the startups. It offers a wide range of enrichment like funding&incentives, Incubation, Tax exemptions, ease of patent applications etc, for a company that is recognized as a startup by DPIIT (Department for Industrial Policy and Promotion)
For a firm/company to be identified by DPIIIT as a startup, the nominal list of criterion are detailed below.
1. Age: The company incorporation should not have done before 10 years
2. Type: Incorporation of the company should be done as a Private Limited Company (or) Registered Partnership Firm (or) a Limited Liability Partnership
3. Annual Turnover: Should not have exceeded Rs. 100 crore in any of the financial years since incorporation
4.Original Entity: The firm should have been formed originally ensuring that it is not just splitting/reconstruction of an already existing business.
5. Innovate cum Scalable: The company should contribute towards development or improvement of a product, process/service and/or should possess a scalable business model. The company should be potent for wealth creation and making employment.
DPIIT showersstartups enrolling under it with the following nourishments/benefits.
1. SELF CERTIFICATION
2. STARTUP PATENT APPLICATION & IPR APPLICATION
3. TAX EXEMPTION UNDER 80IAC
4. SECTION 56 EXEMPTION
5. EASY WINDING UP OF COMPANY
6. EASIER PUBLIC PROCUREMENT NORMS
Ease of India comes here into the picture as self-certification resembles reducing the regulatory burden on the startups to allow them to concentrate on their core business, also to keep compliance costs low.
Though the company is termed as a startup if it was incorporated within 10 years, the eligibility for self-certification is granted only startups that are incorporated not before 5 years.
The company is asked to register and login the ShramSuvidha Portal of the Ministry of Labour and Employment
After login, Click ‘Is any of your establishment a Startup?’ and follow the instructions
Patents are the gold mine of startups as it preserves their innovative ideas and offers a competitive edge over other companies, leading to an increase in the value of the company.
The objective is to bring down the time and cost demanded to obtain a patent, making it financially attainable to protect the innovation and encourage further.
DPIIT recognition is favourable. The criteria are mentioned above.
Reach out, facilitators. They will guide according to the sector desired and jurisdiction of the facilitators.
Eligible startups are exempted from paying tax for 3 consecutive years out of the first ten years of incorporation.
For the status of your application check the dashboard of the startup India portal.
The exemption provided under Section 56(2)(VIIB) of Income Tax Act
Simplifies the process of shutting down or winding up operations to permit entrepreneurs faster reallocation of resources and capital to more productive avenues faster, in case of their capital being stuck in the business failure.
Government bodies and state-owned entities will buy products from private entities through Public Procurement. Government organisations constitute a huge market for startups.
It makes easier participation in the public procurement process and opens up a huge market opportunity
Recognition under the department for Promotion of Industry & Internal Trade.
Apart from these provisions for startup offered by the Government of India, the Startup India website also offers many benefits such as investor relation, incubators, idea brainstorming, market research reports etc.
To get a detailed and FREE consultation, and to get your idea transformed into a successful business with ease, opt-in to schedule your appointment