Startup India Certificate: Startups are becoming increasingly popular around the world. They are small, newly established businesses founded by either an individual or a group. Unlike other businesses, startups offer a product or service that is not available elsewhere in a similar way. Innovation is therefore key to such ventures. They either develop a new service or product or redesign an existing service or product to make it better.
Over the past decade, India’s startup culture has grown tremendously. In order to sustain the progress of the startup culture and attract budding entrepreneurs, the Government of India introduced the Startup India scheme.
In this article, we have explained in detail what the government schemes for startups in India are, how to get the Startup India certificate, and more.
What is Startup DPIIT Certificate
The Startup DPIIT (Department for Promotion of Industry and Internal Trade) Certificate is an official recognition provided by the Government of India to qualifying startups under the Startup India initiative. It signifies that a startup meets the eligibility criteria set forth by the government and is entitled to various benefits and incentives aimed at fostering innovation and entrepreneurship in the country.
Obtaining the DPIIT certificate offers startups access to a range of benefits, including tax exemptions, easier regulatory compliance, faster access to funding, and participation in government programs and schemes. This certificate plays a crucial role in facilitating the growth and development of startups by providing them with recognition and support from the government.
Simple Steps to Get DPIIT Registration Certificate?
DIIPT certification not only validates your startup’s status but also opens doors to a range of opportunities for growth and support. Here are the 9 detailed steps on how to apply for DPIIT registration Certificate.
Step 1: Check Eligibility Criteria
Before starting the registration process, ensure that your startup meets the eligibility criteria specified by the Startup India initiative. Generally, startups should:
- Be registered as a private limited company, partnership firm, or limited liability partnership (LLP) under the Indian Companies Act, 2013, or the Indian Partnership Act, 1932.
- Have been incorporated or registered in India for up to ten years from the date of its incorporation/registration.
- Have an annual turnover not exceeding ₹100 crores in any of the previous financial years.
Step 2: Register on the Startup India Portal
The next step is Visit the Startup India website and create an account if you don’t have one already. The portal serves as a central platform for startup registration and access to various government schemes and benefits.. Heres how you can do it:
- Visit the Startup India website.
- Click on the “register” button in the top right corner.
- Now enter your name, email ID, mobile number, and password.
- After doing so, click on the “Register” button.
- Enter the OTP you’ve received on your email ID, along with details like user type, stage of the startup, and more.
- Once done, click on the “Submit” button.
- Your Startup India profile is ready now.
Now that your profile is ready on the website, you can apply for various programs and gain access to different resources on the portal.
Step 3: Gather Required Documents for DPIIT registration
Prepare all the necessary documents required for DPIIT registration. These may include:
- Certificate of Incorporation/Registration of the company or LLP.
- Memorandum of Association (MOA) and Articles of Association (AOA).
- Details of directors/partners, including their identification and address proofs.
- Proof of turnover and financial statements (if applicable).
- Letter of recommendation (if any) from an incubator recognized by the Government of India or a letter of support from an Indian angel investor or recognized venture capital fund.
Step 4: Apply for DPIIT Recognition
Log in to your Startup India account and navigate to the DPIIT certificate application section. Fill out the application form with accurate details about your startup, including business activities, industry sector, and ownership structure.
In order to get recognized by DPIIT, here’s what you need to do:
- Log in with your registered details on the Startup India website and choose the “DPIIT Recognition for Startups” button.
- You can find it under the “Schemes and Policies” tab.
- Now click on the “Get recognized” button on the subsequent page.
- Once the new page opens, scroll down and choose the “Click here to submit your application as a startup.” button.
Step 5: Submit the Recognition Application
Fill in details like full address, entity details, authorized representative details, startup activities, partner details, self-certification, and startup activities on the “Startup Recognition” form.
You’d find a plus sign on the top right side of the form. Click on it and enter each section.
After entering all the sections of the form, accept all the terms and conditions. Finish this step of getting the Startup India certificate by clicking the “Submit” button.
Step 6: Submit Registration Documents
Here are the documents that you would require for DPIIT registration certificate:
- PAN Number
- Proof of funding (if any)
- Certificate of Registration or Incorporation of Your Startup
- List of awards or certificates of recognition
- Proof of concept, such as a website link, video, or pitch desk
- Authorization letter of the authorized representative of the LLP, company, or firm
- Your Startup India profile is ready now.
Now that your profile is ready on the website, you can apply for various programs and gain access to different resources on the portal.
Step 7: Get a Recognition Number
Once your application is over, you’ll get a recognition number. The Startup India certification for recognition comes after the Startup India team will review your application and documents. If everything meets the eligibility criteria and requirements, your startup will be approved for DPIIT certification. It usually takes two days.
Additionally, you must be careful while submitting the documents. If either of your documents turns out to be forged or incorrect, you might be liable for a fine of 50% of your startups paid-up capital. The registration fee is INR 25,000.
Step 8: Receive the Startup India Certificate
Upon approval, you will receive the DPIIT certificate via email or through the Startup India portal. The certificate will contain details such as your startup’s name, date of incorporation, and unique recognition number.
Download Startup India DIITP Certificate
Here is link for DPIIT Certificate Download
Step 9: Avail Benefits of Startup DIITP Certificate
With the DPIIT certificate, your startup becomes eligible to avail various benefits offered by the government to recognized startups. These benefits may include tax exemptions, easier access to funding, fast-tracking of regulatory approvals, and participation in government schemes and programs.
What Are The Benefits of Registering Under Startup India?
Here are some benefits of registering your startup under the Startup India Scheme and getting a Startup India Certificate:
1. Easy Self-Compliance for Labor Laws
Startups can do self-assessments for labor law compliance with no physical visits from public officers for the first three years. Using the Startup India portal, entrepreneurs can self-certify under these labor laws.
- Provident Fund Laws
- Inter-State Migrant Worker Laws
- Gratuity Laws
- Contract Labor Laws
- employees state insurance laws
- Other Construction Workers Laws
2. Getting Tax Exemption Under Section 80 IAC
After getting recognized under the Startup India Scheme, startups can apply for tax exemption under Section 80IAC of the Income Tax Act. A startup can claim tax holidays for three years.
- Only private companies and LLPs are eligible.
- It must be a recognized startup.
- The date of incorporation should be on or after April 1, 2006.
3. Funding Opportunities
The foremost benefit of getting a Startup India Certificate is that startups can gain funding under various government or semi-government-aided schemes. Some of these include:
- Scheme for Venture Capital Assistance
- Single-Point Registration Scheme
- Support for MSMEs for International Patent Protection in Electronics and IT
4. Patent, Trademark, and IPR Exemption
Startups can opt for help in applying for IP rights like patents, copyrights, and trademark registration after getting their Startup India Certificate. They can claim the following relief under IPR:
- rebate on the filing of a trademark application.
- Fast-track patent applications for startups with an 80% government fee rebate.
- Facilitators panel for IP application assistance
5. Angel Tax Exemption Under Section 56
After getting a Startup India certificate, startups can apply for an angel tax exemption. Read on to understand the criteria.
- It must be a DPIIT startup.
- The aggregate amount of paid-up share capital and share premium post the proposed issue of shares shouldnt exceed INR 25 crore.
6. Easy Winding Up
If the business model of a startup doesnt work, the entity can wind up in bankruptcy within 90 days using the Insolvency and Bankruptcy Code of 2016. The credit for that goes to the Startup India Certificate.
FAQs on Startup India Certification
The frequently asked questions regarding Startup India Certification are given below:
How can I get startup certification in India?
You can apply for a startup certificate on Startup Indias website by filling in the necessary information and uploading the required documents.
How long does it take to get a startup certificate in India?
It usually takes two working days to get a Startup India certificate for startups.
How much does it cost to register a startup in India?
It can cost anywhere between INR 6,000 and INR 30,000 to register a startup in India.
Who can get a DIPP certificate?
An entity that is a private limited company, registered partnership firm, or LLP with a turnover of fewer than 100 crores can apply for a DIPP certificate. Besides, the entity should register for the certificate in the first ten years of its incorporation.
How long will it take to get a DPIIT certificate?
You can typically get a DPIIT certificate in two working days.
What is the difference between DIPP and DPIIT?
DIPP and DPIIT are the same. The Department of Industry Policy and Promotion (DIPP) got renamed the Department for Promotion of Industry and Internal Trade (DPIIT).
Also Read,