Startup India
Startups are quite trendy in India. Under the guidance of PM(Prime Minister)- Narendra Modi, the government initiated and promoted Startup India. This scheme proposes establishing a robust ecosystem favorable for the startups' growth in huge-scale job generation and long-term economic growth.
It objectifies to reinforce startups in skyrocketing their growth via technology and innovation.
As the inauguration initiative on January 16th, 2016, many programs are implemented to promote the Prime minister's aim to transform India into a nation of job generators rather than job seekers.
To endorse advancement and aid the Indian economy, several advantages to entrepreneurs in building startups give an edge in their accomplishment.
The startups which fall in the Startup India initiative are given abundant benefits for launching their business in India. In this article, we will consult the benefits of startup registration in India. Before proceeding, let's know the eligibility criteria for startup india registration.
Eligibility for startup registration in India:
According to the Startup India Action plan, the subsequent conditions should be met to be eligible for startup india registration.
- Registered or integrated in India up to 10 years from its incorporation date.
- Is a private company registered in India as a partnership firm or an LLP(limited liability partnership).
- Has an annual income not beyond 100 crores INR for any financial year since registration/ incorporation.
- Is functioning towards development, innovation, or enhancement of products or services, or procedures if it is an adaptable business model with a great potential for employment or wealth creation.
It is significant to remember that an entity created by dividing or reforming of current business is not a Startup. Additionally, an entity is not a startup after the following:
- Conclusion of ten years from the date of its startup registration in India.
- Accomplishing earnings in any preceding year of more than 100 crores INR.
Legal Requirements for startup registration in India:
For any entity, business, or organization to be called a startup, it must be under the jurisdiction of the subsequent rules of Company Registration:
- Having startup India registration under the Companies Act, 2013 and the Indian Partnership Act, 1932
- Limited Liability Partnership Act, 2002 - LLP registration
This aspect also signifies that companies under the Sole Proprietorship Registration are not in the provisions of this scheme.
Benefits of startup registration in India:
1. Easy procedure
The Indian government instigated a website and a mobile app for private company registration in India.
Anyone willing to build a startup must fill out a basic form on the website and upload some documents. The whole procedure is online.
2. Cost reduction
The government gives lists of facilitators of trademarks and patents.
They will endow top-quality Intellectual Property Right Services comprising brief examinations of patents at reasonable fees. The government will abide by every facilitator fee, and the startup will bear only the legal fees. They will get an 80% cutback in the expenditure of filing patents.
3. Simple Access to Funds
The government offers the startup a 10000 crore rupees fund for venture capital.
Additionally, the government bestows guarantees to lenders to persuade financial institutes and banks to give venture capital.
4. Tax exemption for three Years
This is the supreme benefits of startup registration in India. Startups will be excused from income tax for three years if they obtain a certification from Inter-Ministerial Board (IMB).
5. Apply for tenders
Startups can easily apply for government tenders. They are excused from the turnover/former experience criterion pertinent for usual companies.
6. R & D amenities
Seven novel Research parks will be there to give facilities to startups in the R&D domain.
7. No sluggish compliances
Many compliances are there for startups to save money and time. Startups should be there to self-certify conformity (via the Startup mobile app) with three environments and nine labor laws.
8. Save taxes for investors.
People spending their capital gains in the venture funds built by the government will obtain exclusion from capital gains. This facet will abet startups to bring more investors.
9. Select your investor
The startups will get a choice to opt between the VCs, which provides them the freedom to prefer their investors.
10. Simple exit
A startup can shut down its business within ninety days from the date of application of closing up.
11. Connect with other entrepreneurs
The government decided to keep two startup fests yearly, both globally and nationally, so that numerous startup stakeholders can gather. This initiative will give great huge networking opportunities.
Final Thoughts
The Indian government greatly encourages startups. Startup India is a remarkable phenomenon for imposing the thriving of the startup culture and sanctioning the businesses with the appropriate tools and facilities to transcend from the startup stage into a flourishing business stage.
Also, the benefits of Startup India are tremendous, and they will aid you in establishing your company.
With the support of the Startup Business Grants, entrepreneurs acquire financial support to maintain in the competitive market.
Due to a low level of acquiescence and a huge number of opportunities, Startups tend to expand, develop, and implement their journey. If you have any queries regarding eligibility and benefits of startup registration in India, you can contact us and get your problem solved.
If you need help regarding various legal services to grow your business, then reach out to Lawgical India. Our experts will conduct the entire process seamlessly for your startup. Contact us today.
