Startup India Scheme 2021 : Registration at startupindia.gov.in, Eligibility & Benefits

Startup India Scheme Portal | Startup India Scheme Online Registration | India Scheme PDF Download | startupindia.gov.in Portal

The government of India has started Startup India Scheme in the year 2016. The main purpose of this scheme was to generate employment as well as creation of wealth. Another goal was to develop and innovate services as well as products and to increase employment ration of the country. In order to bring all these objects in a single framework the government announced a a Startup India Action Plan. The plan consists of 19 items spanning across three key areas-:

  • Simplification & handholdings
  • Funding support & incentives
  • Industry-academia partnerships and incubation
Startup India Scheme 2021

Under this program, the startups are entitled to various benefits like tax exemption, assistance in funding by the government prioritization of startups in public procurement, etc.

Simplification & handholdings

In order to motivate the new entrants the government has simplified the process of registration of startups. For this purpose the government has set-up Startup India hubs where all the works related to incorporation, registration, grievance handling, etc. are taking place in a simple and easy way. Besides this an online portal has also been launched on which one can apply for registration anytime anywhere.

Financial Support & Incentives

In order to motivate the new entrants the government is also providing them financial support. For this purpose the government has set up a  a corpus of Rs.10,000 crores for 4 years (Rs.2500 crore each year). From such fund, the government invests in various startups. Besides, this special funds are provided, investment in which leads to exemption from the income tax on the Capital Gain. Further the government is also providing these startups income tax exemption for the first 3 years after the incorporation.

Industry-academia Partnerships and Incubation

  • Under this the government is Organizing startup fests for showcasing innovation and providing a collaboration platform.
  • Besides has launched the Atal Innovation Mission (AIM) with Self Employment and Talent Utilization (SETU) program
  • Harnessing private sector expertise for incubator setup.
  • Setting up of seven new research parks modelled on the research park setup at at IIT Madras.
  • Building innovation centers at national institutes.
  • Promoting startups in the biotechnology sector.
  • Launching of innovation focused programs for students.
  • Annual incubator grand challenge.

Benefits of Startup India Scheme

The Startup India Scheme provides the following benefits-:

Self Certification

As all we know that for the companies it was a lengthy and time consuming process to get a certificate under various laws.The had to go through a long registration process. But now in order to make easy the process of get certification under various labour & environmental laws the government has now allowed them to get self certification. So now the startups can get certify by their own though a simple online procedure.

Th laws under which the startups can certify them are as follows-:

  • The Water (Prevention & Control of Pollution) Cess (Amendment) Act, 2003
  • The Water (Prevention & Control of Pollution) Act, 1974
  • The Air (Prevention & Control of Pollution) Act, 1981

Labour Laws

  • The Building and Other Constructions Workers’ (Regulation of Employment & Conditions of Service) Act, 1996
  • The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979
  • The Payment of Gratuity Act, 1972
  • The Contract Labour (Regulation and Abolition) Act, 1970
  • The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
  • The Employees’ State Insurance Act, 1948

Process of Self Declaration

In order to self certify your entity you need to follow the steps given below.

  • Firstly you need to visit the the Official Website of Startup India Scheme.
  • Then on the home page click on Self Certification option.
  • Now on the next page click on Click here to access the portal link.
  • Then the portal of Shram Suvidha will open, register yourself there.
  • Once you have registered successfully then login on the portal.
  • After successful login, Click link “Is Any of your Establishment a Startup?”
  • Finally fill the application form form for self certification and submit the same.

Intellectual Property Right Support

Previously the startups had to take a patent right for selling their unique service or product on very high cost. But now the government is providing 80% rebate on Patent Cost. Also the government is giving them 50% rebate at the time of filling trademark.

Tax Benefit under Startup India Scheme

Under this scheme the startups are getting various tax exemptions. Some of them are as follows-:

Exemption under Section 80IAC- Startup India Scheme

Under this all the eligible startups are getting exemption from paying the tax of 3 consecutive years out of their first ten years since incorporation.

Eligibility to get this Exemption under Startup India Scheme

In order to get exemption under section 80IAC of the Income tax Act,the startups need to fulfill the following eligibility criteria-:

  • DPIIT must have recognized the entity.
  • Besides, only Private Limited Companien or Limited Liability Partnerships are eligible for tax exemption under Section 80IAC
  • Further, the Startup must have been incorporated on or after 1st April, 2016
Documents Required to avail this exemption under Startup India Scheme

If an entity wants to get this exemption then it will have to produce the following documents-:’

  • Memorandum of Association for Pvt. Ltd./LLP Deed
  • Board Resolution (If Any)
  • Annual Accounts of the startup for the last three financial years
  • IT returns for the last three financial years Electronic Process after Applying
How to Apply for availing this Exemption under Startup India Scheme ?
  • In order to register your startup for availing this exemption, visit the Startup India portal and register there.
  • Thereafter apply for the recognition form DPIIT.
  • Once your entity gets such recognition then you can apply for an exemption under section 80IAC by filling the application form.

Exemption under section 56 of Income Tax- Startup India Scheme

Under this entities having a net worth of more than rupees 100 Crore or having a turnover of rupees more than 250 crore will get the exemption under section 56(2) VIIB of Income Tax Act. Besides, entities in which the Accredited Investors, Non-Residents, AIFs (Category I), & listed companies have invested and having a a net worth of more than rupees 100 Crore or having a turnover of rupees more than 250 crore will get the exemption under section 56(2)(VIIB) of Income Tax Act. Further the all the eligible startups are eligible to get an exemption of rupees 23 crore in case of Consideration of shares.

Eligibility to get this Exemption under Startup India Scheme ?

In order to get exemption under section 56 of the Income tax Act,the startups need to fulfill the following eligibility criteria-:

  • It must be private limited company.
  • Besides, should have been recognized as a DPIIT.
  • Not Investing in specified asset classes
  • Startup should not be investing in immovable property, transport vehicles more than INR 10 Lakh, Loans and advances, capital contribution to other entities, except in the ordinary course of business.
How to Apply for availing this Exemption under Startup India Scheme ?
  • In order to register your startup for availing this exemption, visit the Startup India portal and register there.
  • Thereafter apply for the recognition form DPIIT.
  • Once your entity gets such recognition then you can apply for an exemption under section 56 by filling the application form.

Easy Public Procurement

Public procurement refers to the process by which governments and state-owned enterprises purchase goods and services from the private sector. As public procurement utilizes a substantial portion of taxpayers’ money, governments are expected to follow strict procedures to ensure that the process is fair, efficient, transparent and minimizes wastage of public resources.

For this the government has started a new platform called Government e-Marketplace (GeM). SO now on this the startups can sell their products to the directly. For this the need to register themselves with it. Once can create his or her seller profile on GeM by using the following things-:

  • DPIIT Recognition Number
  • Mobile number used for Recognition
  • PAN Number
  • Aadhar Number

Easy Winding Up

Under this one can wind up his entity in an easy way. This will allow the entrepreneurs to reallocate capital and resources to more productive avenues faster.
To encourage entrepreneurs to experiment with new and innovative ideas without facing complex exit processes where their capital stuck in case of business failure.

As per startups with simple debt structures, can be wound up in 90 days of filing the application for insolvency.For this purpose a liquidator is appointed for the entity who is responsible for the the process of the liquidation by way of selling the company’s assets and settling the amount of creditors within 6 months of the appointment of the liquidator.

Patent Application & IPR

The most important objective of it is to reduce the time that a startup takes to get the patent right. For this purpose the government has provide an online platform where one can apply for the patent right. On this facilitator are available who assist the in the process of filling the application for Patent Right. Most importantly, the government will pay fees of these facilitator while the startup will only bear the statutory fee. In addition to this the startups will get a rebate of 80% while filling the application for availing the patent right. Further, this is also helpful in tracking the application.

Process to check the list of facilitators

Various facilitators are available on Startup India portal. One can get the contact details of them from there and can get the help of them at the time of filling application for availing the patent right. To chek the list of theese facilitator you need to follow the steps given below-:

  • Firstly you need to visit the the Official Website of Startup India Scheme.
  • Then on the home page click on the option of Patent Application & IPR Protection.
  • On the next page the list of all facilitator will open along with their name, address and contact details. You can select a facilitator from here in order to get assistance for availing the patent right.

Features of Startup India Scheme

The scheme has the following features.

  • New-entrants are granted a tax-holiday for three years.
  • The government has provided a fund of Rs.2500 crore for startups, as well as a credit guarantee fund of Rs.500 crore rupees.

Eligibility For Registration under Startup India Scheme

In order to register your startup under Startup India Scheme your startup must fulfill the following eligibility criteria_;

  • It must be formed whether as a private limited company or a limited liability partnership.
  • Besides , it must a a new firm or not older than 5 years.
  • Should have a total turnover of less than rupees 25 crore.
  • It must have got the approval from DPIIT.
  • In order to get approval from DPIIT  the firm should be funded whether by an Incubation fund, Angel Fund or Private Equity Fund.
  • The firm should have obtained a patron guarantee from the Indian patent and Trademark Office.
  • It must have a recommendation letter by an incubation.
  • Capital gain is exempted from income tax under the startup India campaign.
  • The firm must provide innovative schemes or products.

How to Register your Company under Startup India Scheme ?

One can register the following three types of companies under this scheme.

  • Partnership Firm
  • Limited Liability Partnership Firm
  • Private Limited Company

Steps to Register under Startup India Scheme

  • Firstly you need to visit the Official Website of Startup India Scheme.
  • Then on the home page you need to click on the option of How to Get Recognized.
  • Now on the next page click on Get Recognized option.
  • Thereafter you will have to read all the instructions carefully and select Click here for submitting your application for recognition as a Startup link.
  • Now a login section will open in front of you but you need to click on Register Now option.
  • On the registration from fill the following details-:
    • Name
    • Email ID
    • Mobile Number
    • Password
  • Lastly hit the Register option.
  • Once you have registered successfully then fill the application form accordingly.
  • In the application form you need to enter the following details-:
    • Legal Entity
    • Incorporation Number
    • Incorporation Date
    • PAN Number (optional)
    • Address, Pin Code & State
    •  Details of  Directors and Partners
Startup India Scheme 2021 Registration at startupindia.gov.in
  • Then upload  the essential documents and Self-certification in the prescribed manner.
  • Finally Submit the application form.

Contact Details

In case of any queries you may contact on the following-:

Office Address
INVEST INDIA
110, Vigyan Bhavan Annexe,
001, Maulana Azad Road,
New Delhi 110 001
Phone – +91 011 2304 8155
Working Hours: 10:00AM – 5:30PM (Mon to Fri)
Toll Free Number: 1800 115 565
Working Hrs: 10:00AM – 5:30PM
Email: dipp-startups@nic.in

 

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