Startup India Certificate: Startups are becoming more popular globally. They are small, newly established businesses started by either an individual or a group. Unlike other ventures, startups offer a product or service not available elsewhere in a similar manner. Thus, innovation is key to such ventures. They either develop a new service or product or redevelop a preexisting service or product to make it better.
Over the last decade, India’s startup culture has witnessed immense growth. 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 Startup India Scheme is, how to get the Startup India certificate, and more.
What is the Startup India Scheme?
Startup India is an initiative launched by the government of India to promote the growth of startups in the country. Headed by Prime Minister Narendra Modi, the action plan of this scheme is to focus on these areas:
- Funding support and incentives
- Simplification and handholding
- Industry-academia partnership and incubation
Read on to understand the steps to register for a Startup India certificate.
Steps to Register For India Startup Scheme
The detailed steps on how to register and get Startup India certificate has been explained below:
1. Incorporating Business
First, you must incorporate a business under the MCA as a limited liability partnership (LLP), partnership, or private limited company. It’s vital to follow all the standard procedures for any business registration, like obtaining the certificate of incorporation or partnership registration.
You can incorporate an LLP or a private limited company by filling out the registration application and submitting it to the Registrar of Companies in your area. In order to establish a partnership firm, you’d have to fill out the application and submit it to the Registrar of Firms in your region.
In both cases, you’d have to submit the fees and necessary documents with your application.
2. Registration with Startup India
The next step is registering your company or firm as a startup in the Startup India scheme run by the government. The procedure is simple and can be completed online. Here’s 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.
3. Get DPIIT Certification
The next step in your journey to get a Startup India Certificate is to apply for Department for Promotion of Industry and Internal Trade (DPIIT) recognition.
It’d help you utilize benefits like access to high-quality IP services and resources, self-certification under labor and environmental laws, relaxation of public procurement norms, easy winding up of the company, and more.
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.
4. 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.
5. Submit Registration Documents
Here are the documents that you’d require for registration:
- 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
6. Get a Recognition Number
Once your application is over, you’ll get a recognition number. The Startup India certification for recognition comes after all the documents get examined. It usually takes two days.
That said, 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 startup’s paid-up capital. The registration fee is INR 25,000.
7. Other Areas
Other important things which you should take care while getting Startup India certificate are given below:
A. Patents, trademarks, or design registration
If you need a trademark for your startup or a patent for your innovation, you can approach any of the facilitators on the list provided by the government. It’d require you to bear only the statutory fees. Thus, you’d get an 80% reduction in prices.
B. Tax Exemption
Did you know that startups are exempt from income tax for three years? However, startups need to claim the tax exemption benefit. In addition, they need to be certified under the IMB, or Inter-Ministerial Board.
One of the crucial challenges that many startups face is accessing finance. Due to a lack of ongoing cash flow, security, or experience, startup owners may fail to attract investors. Sometimes the high risk also puts off investors.
The government of India has set up a fund with a total corpus of 10,000 crores over four years. The goal behind the fund is to provide support to entrepreneurs. This fund won’t invest directly in startups but will participate in the capital of the SEBI-registered venture fund.
D. Self-Certification Under Employment and Labor Laws
Startups can self-certify under environmental and labor laws. It helps them reduce their compliance fees and regulatory burden. Thus, startups get the chance to focus on their core business.
You can self-certify your startup’s compliance with six labor laws and three environmental laws for three to five years from the incorporation date.
Advantages of Registering Under the Startup India Scheme
Here are some advantages 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
- employee’s state insurance laws
- Other Construction Worker’s 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 shouldn’t exceed INR 25 crore.
6. Easy Winding Up
If the business model of a startup doesn’t 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 India’s 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).