Launched in 2016, the Startup India initiative aims to foster innovation and support the growth of startups in India, positioning the country as a global leader in entrepreneurship. Through Startup India registration, startups gain access to a host of benefits designed to accelerate their growth.
DPIIT Registration for Startups
Under the Startup India scheme, eligible businesses can register with the Department for Promotion of Industry and Internal Trade (DPIIT), which is part of the Ministry of Commerce and Industry. Once recognized by DPIIT, startups are eligible for various benefits provided by the initiative.
Eligibility Criteria for Startup India Registration
- Business Structure: Must be a private limited company, limited liability partnership (LLP), or partnership firm.
- Age: Must be incorporated within the last 10 years (15 years for biotech startups).
- Annual Revenue: Annual turnover must not exceed INR 100 crores.
- Innovation: Must focus on innovation, technology, or intellectual property to develop new products, processes, or services.
- DPIIT Recognition: Must obtain official recognition from the Department for Promotion of Industry and Internal Trade (DPIIT).
- Legal Compliance: Must comply with relevant laws, including the Companies Act, Income Tax Act, and GST Act.
- Job Creation: Should contribute to job creation or have the potential to do so.
Benefits Under the Startup India Scheme
- Patent, Trademark, and Design Registration: Startups can access government-approved facilitators for patent and trademark filings, benefiting from an 80% fee reduction.
- Funding Support: The government has created a Fund of Funds with an initial corpus of INR 2,500 crore, aimed at investing in venture funds that support startups.
- Self-Certification for Labour and Environmental Laws: Startups can self-certify compliance with six labour laws and three environmental laws for up to five years, reducing compliance costs.
- Environmental Exemption: Startups in certain industries (as per the Central Pollution Control Board) are exempt from some environmental clearances for up to three years.
- Tax Exemptions: Startups recognized by DPIIT can claim income tax exemptions for three years within their first ten years of operation. They are also eligible for an angel tax exemption under Section 56 of the Income Tax Act.
- Streamlined Winding Up: Startups can dissolve their business in just 90 days, offering an efficient exit strategy.
- Relaxed Public Procurement Norms: DPIIT-recognized startups can participate in public sector procurement without the usual turnover and experience requirements, unlocking opportunities with government contracts.
- The Startup India scheme provides substantial support to entrepreneurs, making it easier to innovate, access funding, and scale businesses.