Startup Registration in India - An Overview

A startup is a newly established business, usually small, started by one or a group of individuals with innovation. The business either develops a new product/ service or redevelops a current product/service into something better.

Eligibility Criteria

The startup must meet the following eligibility criteria to avail the DPIIT Certificate of Recognition:

• Period of Existence of Entity: The Period of existence and operations of the company should not exceed 10 years from the date of formation
• Type of Entity: The DPIIT Certificate of Recognition is provided for the company which is incorporated as a Private Limited Company, a Limited Liability Partnership (LLP) or a Registered Partnership Firm.
• Annual Turnover: To get the DPIIT Certificate of Recognition, The firm should have an annual turnover of Rs. 100 crore for any of the fiscal years since its federation
• Original Entity: To avail the DPIIT Certificate of Recognition, the company should not have been incorporated by splitting up or recreating an already existing entity.
• Innovative & Scalable Entity: The entity should be working towards the development or improvement of a product, process, or service.
• The entity should have a scalable business model with high potential for the creation of wealth and employment. The firm should have the potential to generate employment or create wealth.

Benefits for DPIIT Recognized Startups

• Startups shall be allowed to self-certify compliance for 6 Labour Laws and 3 Environmental Laws through a simple online procedure.
• In the case of labor laws, no inspections will be conducted for a period of 5 years. Startups may be inspected only on receipt of credible and verifiable complaints of violation, filed in writing, and approved by at least one level senior to the inspecting officer.
• In the case of environment laws, startups which fall under the ‘white category’ (as defined by the Central Pollution Control Board (CPCB)) would be able to self-certify compliance and only random checks would be carried out in such cases

Start-up India (DPIIT) Recognition

• Access to ₹ 10,000 Crore Funds of Fund!
• Fastrack and up to 80% rebate in IPR Costs
• Use of Make-in-India Logo / Start-up India Logo
• Angel Tax Exemption (Potential Saving of up to ₹ 1 Lakh!)
• Ease of Eligibility for Government Contracts
• Access to Startup India Hub – A one-stop Startup ecosystem