India has witnessed a strengthening startup ecosystem in the last few years due to various government plans aimed at the enhancement of innovation and entrepreneurship. One of the most well-known such initiatives is the Startup India scheme launched by the Government of India in March of 2016 in the administration of Prime Minister Narendra Modi. This program aims to offer assistance to young innovators to set up businesses that can help modernize the economy of the country.
If you are looking to start a new business in India, the process of registering your company might intimidate you. But, because of the extensive structure laid out by the Startup India initiative, the process is easy and can be done in a few simple steps. In this guide, we will explain the 7 steps to register your startup in India as well as answer some of the common questions received.
A Guide to Register Your Startup with Startup India
Step 1: Incorporate Your Business
The registration process to set up a startup in India begins with incorporating your business. Here’s where one has to pick the business structure that has to be selected such as A Private Limited Company Limited Liability Partnership (LLP) Partnership Firm To… After deciding on the structure, one must comply with the legal requirements needed to register the business. For a Private Limited Company or LLP, you must submit the registration application to the Registrar of Companies (ROC) or Registrar of Firms in your area. Additionally, you must provide documents such as the company’s Articles of Association (AOA), the Memorandum of Association (MOA), and pay the required fees. You can check out – Proposed Me, Indian Startup Company Registration.
Step 2: Register with Startup India
With the incorporation of the business done, hence, the next procedure is to register with Startup India. Well, the procedure for registration is completely online which makes it easier instead and better on the go.
To begin, go to the Startup India website and click on the Register button. You will have to enter your name, email ID, and mobile number. Verify your email account by entering the OTP sent to you. Once you verify it, the system sets up your profile for Startup India, allowing you to access options like financing, mentorship, and government schemes.
Also read: RISE AND FALL OF INDIAN STARTUPS: 2024 STARTUP TRENDS INSIGHT
Step 3: Obtaining NITI Aayog’s DPIIT approval
Once you have successfully created your profile on the Startup India portal the next thing is to apply for a DPIIT Recognition (Department for Promotion of Industry and Internal Trade). This recognition is important as it helps your newly formed entity to access many more opportunities such as tax waivers, access to IP assets, etc.
First sign in to your profile on the Startup India portal then go to the recognition tab and Click on the Apply for DPIIT Recognition option. The application will take you to the National Single Window System (NSWS) website where you will register for DPIIT recognition.
Step 4: Fill Out the Recognition Application
Given that you are now on the DPIIT Recognition Application page, you will also be required to provide the following:
- Entity details of your start-up.
- The location of the registered office.
- Contact the authorized representative.
- Directors’ & partners’ Information
- Information about activities of the Start-up and self-certification.
After providing the required details, you must agree to the terms of the form and submit it.
Step 5: Registration-related documents and their prerequisites
For your DPIIT registration to be successful, the following documents are to be submitted:
- Certificate of Incorporation/Registration of your startup.
- Proof of Funding (if any is applicable).
- Authorization Letter from the authorized representative of the company/LLP/partnership firm.
- Proof of concept (say, a pitch deck, a web link, or a video).
- App/Application Patent and Trademark (if applicable).
- Recognition securities or award(s) if they exist.
- A PAN Number
Make sure that all documentation is correctly updated and up-to-date to eliminate any delays in the processing of your application.
Step 6: The Recognition number has been assigned
Now that you have submitted an application, DPIIT will check the submitted details, and if everything is fine, they will allot the Recognition Number to your startup. This piece of recognition has to be there to enjoy the provisions granted under the Startup India schemes.
In most cases, you will receive the Recognition Certificate about two days after you send in the documents. After that, you can retrieve the certificate from the Startup India page.
Also read: INDIA’S BEST STOCK MARKET TRADERS: SUCCESS STORIES & INSIGHTS
Step 7: Other Areas of Support
There are numerous other facets of managing a startup that need to be addressed as well. Intellectual Property (IP): If you have a unique concept, it is crucial to patent your invention or register your trademark and designs. It is possible to obtain government facilitators that allow for an 80% reduction in registration costs. Funding: One of the most frustrating obstacles that startups go through is the lack of money. The purpose of this is to remedy this problem, the government has introduced the Startup India Seed Fund Scheme (SISFS) which aims to assist start-up ventures financially. Startup companies can declare that they comply with employment and environmental laws for a period of 3-5 years, saving on compliance costs and reducing the regulatory burden.
Key Features of the Fund of Funds
The Fund of Funds program is administered by the Small Industries Development Bank of India (SIDBI) with the LIC participating as a co-investor. This fund invests not more than fifty percent of the total contribution made into any SEBI-registered venture funds. These venture funds, or daughter funds, invest in start-ups across various industries, such as manufacturing, health, education, etc., instead of focusing on a specific sector.
Conclusion
Because of the Startup India initiative, registering a startup in India has been made less complicated. You can register your startup officially and also benefit from several options meant for the development and growth of the business. The government provides plenty of schemes to help entrepreneurs establish themselves, including tax holidays, funding, and patents.
What are you waiting for? Register your startup today and start this amazing journey with the assistance of the Startup India scheme!