Startup India Registration: Overview
If you are planning to kick off your entrepreneurial journey or have just begun, it’s crucial for you to thoroughly understand the Startup India scheme, including the documents required for Startup India Registration. The Startup India scheme is a flagship scheme of the Government of India to foster the startup ecosystem in India by providing them with the requisite support they need at their initial journey. In this article, we’ll learn about the documents required for Startup India Registration and its benefits for your startup.
What Is Startup India Registration and Its Eligibility?
Startup India Registration is an initiative under the Startup India Scheme launched by the Government of India to promote startup culture for driving innovation and creating job opportunities in the country. This initiative is managed by the Department for Promotion of Industry and Internal Trade (DPIIT).
By registering under this scheme, startups can avail of a number of benefits, including tax exemptions, easy access to bank loans or credit, and reduced/simplified compliance requirements. To qualify for Startup India Registration, startups must meet specific eligibility criteria set by the DPIIT. The eligibility criteria are as follows;
Eligible Business Structure
A startup must be registered as a Private Limited Company, a Limited Liability Partnership (LLP), or a Partnership Firm. The reason is that these structures provide startups with legal recognition, and they must comply with India’s corporate law.
Age of the Business
Your startup should not be older than 10 years, which means it hasn’t completed 10 years of incorporation. This eligibility point ensures that only new, recently incorporated and emerging businesses can enjoy the benefits under the Startup India Scheme.
Annual Turnover Limit
Your startup’s annual turnover should not exceed ₹100 crore in any of the financial years since it was incorporated. This criteria helps the government to grant benefits to the emerging businesses which actually need it.
Innovation and Scalability Prospects
The startup must be working towards the development of a whole new, improved product/services/processes or should be a business model with high scalability, and great potential for generating employment opportunities and wealth.
Original Entity
Your startup must be an original entity, and it should not be formed as a result of splitting up or restructuring of an already existing business. This ensures only original and innovative startups can qualify for Startup India registration, recognition, and benefits under this scheme.
A startup meeting the aforementioned criteria is eligible to apply for Startup India registration and, thereafter, can reap the benefits offered under this scheme.
Key Benefits of Startup India Registration
If you are wondering about what benefits an entrepreneur can reap for their startup if it qualifies for this registration, there are numerous. Some of the key benefits of Startup India Registration are;
Easy Access to Funds
The government has secured a reserve of 10,000 crore rupees to provide necessary funds to the startups in the form of venture capital. It also gives guarantees to the lending bodies (banks and financial institutions) to facilitate easy access to loans and debt for the startups.
Tax Holiday for 3 Years
Startups will be exempt from income tax for 3 years only if they obtain a certification from the Inter-Ministerial Board (IMB).
Access to Government Tenders
It enables startups to participate and apply for government tenders.
R&D
The Government plans to set up many research parks to provide necessary facilities to startups in the R&D sector.
Simplified Compliances
Various compliances have been reduced and also simplified for startups, focusing on saving their time and money.
Documents Required for Startup India Registration
Before applying for Startup India Registration, it’s important to properly prepare and organise the documents required as per the specified format. Arranging a proper and complete set of Startup India registration documents beforehand makes the Startup India registration application smooth and also ensures an expedited approval of the application.
The comprehensive list of documents required for Startup India Registration goes as follows:
1. Basic Documents (Mandatory for All Startups)
| Document | Description |
|---|---|
| Certificate of Incorporation/Registration | It’s an essential document proving your startup is registered legally. |
| PAN Card of the Entity | A PAN Card is a crucial business document that is required for tax identification and official verification (not the founder’s personal PAN). |
| Business Details | Your business details should include the registered office address, date of incorporation, type of business, and main operations. |
| Director/Partner/Promoter Information | It is required to provide the following information for all key members of a startup applying for Startup India DPIIT registration: Names, DIN or LLPIN (if applicable), and identity details. |
Brief Description of Business Idea
Draft a summary of your innovative business idea in 200–400 words, describing how your startup will work or is working toward innovation and solving a real problem. Moreover, it also possesses the potential to grow and scale.
Proof of Concept/Business Plan
To show proof of your business plan, attach one of the following:
- Products’ screenshots or website link
- Pitch deck or presentation
- Video demo or prototype images
- Proof of revenue or user traction (if available)
These are the foundational documents that need to be provided by every entrepreneur/startup seeking benefits offered by the government to startups.
2. Conditional Documents
Since basic documents are mandatory for all startups, there are also some conditional documents that startups need to provide with their Startup India DPIIT Registration as per their structure or nature. Those documents are listed down:
1. Letter of Recommendation
It’s a letter issued by any recognised incubators, industry association, or government body, supporting your startup’s innovation. Before 2019, it was mandatory for Startup India Registration, but now it’s optional.
2. Proof of Funding (If Funded)
Another vital conditional document is investment confirmation from SEBI-registered investors, angel networks, or venture capital firms.
3. Patent/Trademark Filings (If Any)
In case your startup deals with intellectual property, you are required to submit copies of patent applications or registration certificates.
4. Income Tax Returns (In Case Already Operational)
If your startup has already commenced its operations, attach the recent filed returns to show business operations and credibility.
3. Documents Required for Special Cases
There are certain special cases where startups are required to provide some additional documents if applying for Startup India recognition in India. Those special case documents are described below as per the specific startups:
- Funded Startups: For startup registration of such startups, it’s important to provide proof of funding, such as a term sheet, investment agreement, or certificate from a SEBI-registered fund.
- Patent-Based Startups: Such startups are required to provide a patent filing or patent grant certificate copy.
- Incubator-Endorsed Startups: They need to provide a letter of recommendation from a DPIIT-recognised incubator or accelerator.
What Happens After Preparing the Required Documents?
Once you prepare the requisite documents and finally submit your Startup India (DPIIT) recognition application, your filled information and attached documents undergo a meticulous verification process. Thereafter, upon approval of your application, the department issues a Startup India Recognition certificate that you can download by logging in to your Startup India portal account.
Conclusion
Obtaining your Startup India (DPIIT) recognition gets smoother and easier if you have all the required documents arranged and organised in the specified format. Preparing the documents prior to applying for Startup India registration ensures easy filing of the application form, faster approval from the department, and avoids unnecessary delays or rejection.
As a result, proper documentation saves your valuable time and enhances your startup’s credibility among DPIIT and potential investors. However, preparing Startup India registration documents requires an in-depth understanding and experience in filing this form, and therefore, reaching out to professional assistance from Setindiabiz can be a wise decision you can take for your startup.
