Startup India is an initiative to boost entrepreneurship.
It promotes bank financing, simplifies the incorporation process and grants exemptions to startups.
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An initiative by the government of India aimed at encouraging the development and innovation of products and services and the creation of employment opportunities across the country. One of the goals of the scheme has been simplifying Startup registration India by reducing regulatory burdens and allowing them to focus on their core business while keeping compliance costs low and also providing multiple benefits, aside from the massive networking opportunities provided by the bi-annual startup festivals held by the Government of India both domestically and internationally.
Benefits of Startup India
Income Tax Benefits
Faster Exit Benefits
Startup India Registration Process
The most important step is to register the company as one of only three possible types of entities:
- Private Limited Company, registered under the Ministry of Corporate Affairs and regulated by the Companies Act, 2013 and the Companies Incorporation Rules, 2014. This type of structure allows directors to be separate from the shareholders and provides limited liability for the shareholders with certain restrictions on ownership. To know more about registering a private limited company, please click here..
- Partnership Firm, registered under the partnership firm act, is a structure where the founders are subject to a partnership deed with the conditions outlined and registered with the registrar of firms. Under this structure, the partners have unlimited liability, which means they are personally liable for the debts of the business. However, low costs, ease of setting up, and minimal compliance requirements make it the easier option for businesses that are unlikely to take on any debt. To know more about registering a partnership firm, please click here..
- Limited Liability Partnership (LLP) registered under the Limited Liability Partnership Act, 2008 is a structure wherein a partnership firm takes on the characteristics of a private limited company in terms of facilities such as limited liability and transferability. The LLP structure was introduced into India in 2009 to provide a form of business that is easy to maintain and to help owners by providing them with limited liability. To know more about registering an LLP, please click here.
Once registered, click here and follow the steps outlined to be recognised by the DPIIT as a startup under the Startup India Scheme, including uploading whatever documents they might request and providing the information requested, such as registration/incorporation number, representatives, directors/partners, address, date of incorporation, and so on.
FAQs on Startup India Scheme
A startup defined as an entity that is headquartered in India, which was opened less than 10 years ago and has an annual turnover of less than ₹100 crores (US$14 million).
Most small businesses take at least 2 to 3 years to be profitable and become truly successful once they've hit the 7 to 10-year mark. Most small businesses take years to be successful, despite the overnight success of companies like Facebook.
Any individual, or even a company or an LLP, can become a partner. However, only an individual can become a ‘designated partner’ in an LLP.