The most historic plan of action has now been executed by honorable Prime minister of India Narendra Modi. January 16th, 2016 will be engraved in golden words in the history of India when this remarkable plan of StartUp India was unveiled.
Our country is filled with resources; it can be in the forms of nature's bestowed natural one or human resource. Startup India, the flagship plan of government of India is an initiative to make optimal utilization of country's resources for the country's benefit. As per a research, in India we have 300 million people looking for a job and we have only 100 million jobs that can consume our talent but, what about the rest? The growing gap between the demand and supply of job giver and job seeker has given rise to the new prospect of starting up own business. Off late, we have witnessed a lot of fresh talent coming up. There are innumerable examples that highlight the growing importance of entrepreneurship; it is only via which we can fight the battle of unemployment which becomes the root cause of many non-social activities. Understanding the importance of entrepreneurship and its impact on the economic growth of the nation, Startup India came into the picture. The evolution of this revolutionary movement is all set to transmogrify the nation's economic stature on the global platform.
The plan is huge and so are features related to it, here is a snapshot of the key features of government of India's Startup India campaign:
- Free from series of compliance policies
- Creation of SPOC
- Simplifying the process.
- Legal Support and Parenting
- Startups can now apply for tenders floated by PSUs
- Easy exit policy
- Credit Guarantee Fund
- Leverage in taxation on Capital gains
- Tax Exemption to Startups
- Leverage on taxes on investment which is above Fair Market Value.
- Startup fest
- Rolling out Atal Innovation Mission with Self-Employment and Talent Utilization (SETU) Program
- Establishment of government funded incubators
- Building Innovation Centres at National Institutes
- Establishment of Research Parks
- Encouraging Startups in the Biotechnology Sector
- Innovation Focused Programs for Students
- Annual Incubator Grand Challenge
The startup India campaign is the first step of India towards recognizing the in-house talent . The registration for the same is simple yet it has certain guidelines that need to be followed to assure strict adherence to the policies and at the same time, this will help in tracking the growth and status of the startups in the years to come.
SO, HOW DOES ONE GO ABOUT THE REGISTRATION PROCESS AND WHAT ARE THE NITTY-GRITTY BEHIND IT ?
Before proceeding ahead, let us understand what is a Startup or which company will be recognized as a Startup:
- Any company or legal entity which has completed 5 years or is lesser than that from the date of establishment
- Any legal entity whose turnover has not been more than 25 crores in last 5 years.
- Any legal entity that is working in the direction of innovation, development, commercialization of new processes and products, or is working towards IP or technology.
- A startup must be registered under the Companies Act 2013 as private limited company or registered under Partnership Act,1932 (as a partnership firm) or registered as an LLP.
HOW TO GO ABOUT THE REGISTRATION PROCESS, SO, LET'S GET STARTUP:
- The first step is to register your company as Private Limited Company, Partnership Firm or LLP (Limited Liability Partnership)
- After the successful registration of the company , one can register their company on the Startup India mobile app that will soon be launched or you can go to the website of DIPP(Department of Industrial Policy and Promotion).
- What all information is required to register on startup India portal:
- Log into the portal of Startup India
- Select the legal entity under which your company falls
- Enter the registration number
- Feed the PAN number ( this option has been kept optional)
- Enter the address of the company along with postal code and state
- You would need the registration certificate, LLP incorporation and in Partnership certificate whichever is applicable.
- Registration avails tax and IPR
- Accept the terms and conditions
The company needs any one of the following documents along with the application for Registration as a Startup on portal or mobile app:
- A recommendation from an incubator that is established in any post-graduate college( It should be in the format specified by DIPP)
- A letter to promote innovation from an incubator (supported by central or state government)
- A recommendation letter forms a central recognized incubator
- A letter of funding (where the incubator, angel investor, PE fund , which is recognized by SEBI which promotes innovativeness in business)
- A letter of funding from Central or state government
- A letter or document which shows the filed patent and published in the journal .
A recognition number will be issued on real-time to the companies who upload the documents and register themselves on DIPP portal or mobile app but in the case of uploading of false or forged document , the defaulter will be subjected to penalty which will be 50% of the paid capital or a maximum of Rs.25,000 whichever is applicable.
What is our role ?
As a key contributor to the initiative of Startup India plan, we wish to help startups easily understand the rule book which is applicable to startups. To make your journey to registration process an easy one Empressalegal will assist you in the registration process. Whether it is company's registration or startup registration at DIPP, we are well versed with the nuts and bolts of the registration process. We help you with the establishment of the firm, understanding the compliance issue, filing of the tax restore. The crux of the matter is that we act as your invisible partner of growth. Our support will help you focus on core business which is earning a profit and we take care of the rest. Your success is a reflection of our quality and ability , get in touch with us today to know more on this.Disclaimer: Statements and opinions expressed in articles are those of the author's personal views.
About the author: Satyendra Kumar Mishra
Satyendra Kumar Mishra is the founder and CEO of EmpressLegal.com which was founded with the singular objective of offerings the highest quality corporate and incorporation services to its clients all over the globe. Since its foundation, EmpressaLegal.com has helped entrepreneurs across India to incorporate their businesses in a fast and secure manner.