How to Register Under the Startup India Scheme: Complete Guide

Startup India Scheme: If you are interested in becoming an entrepreneur of your own, it is beneficial to understand the Startup India initiative and how to register for it. The registration process, benefits available, and eligibility criteria for registration are given below.

What is Startup India?
The Startup India initiative was launched by the central government on 16 January 2016 to encourage the growth of new businesses across India. The scheme is designed to make it easier to do business, with a special focus on innovative ideas, technology, and large-scale business models. The scheme aims to address the issues of complex rules, lack of access to finance, and difficulty in developing ideas.

What are the eligibility criteria for registering for Startup India?

Before getting ready for registration, it is essential to ensure that your business qualifies as a ‘startup’ as per the Startup India definition. The government has set specific criteria to ensure that only innovative and high-potential businesses get the benefit of this scheme.

Who is not eligible to avail the benefits?

A business venture that has been operating for years cannot be registered. A business that does not involve innovation or technology or cannot be developed is not eligible to register.

What are the key benefits of being a part of the Startup India scheme?

If the eligibility criteria are met, a startup can register. This provides various benefits including financial assistance, tax breaks, and networking opportunities. The key benefits of being a part of the Startup India scheme are:

Startup India Hub: By registering a startup, you can access the Startup India Hub, a single-window platform where resources, advice, and opportunities are available. It connects you to a network of incubators, investors, and accelerators.
Income Tax Exemption: Eligible for income tax exemption for three years out of the first seven years.
Angel Tax Exemption: Angel tax is waived for investments from angel investors.
Tax Exemption: 100% tax exemption on profits for the first three years. This can be very helpful in the early stages when cash flow is low.
Financial Assistance and Funding: The government has set up a fund of Rs 10,000 crore to support startups through venture capital (VC) firms. The government does not directly invest in startups, but provides money to venture capital funds that invest in innovative businesses.
Easy access to loans: Loans are made available through schemes like CGTMSE-Credit Guarantee Fund Trust for Micro and Small Enterprises, which provide loans without collateral.
Incubation and networking opportunities: Businesses can access a number of incubation centres and accelerators that provide guidance, resources and infrastructure to grow. One can apply for these schemes by registering with Startup India, which provides networking opportunities with potential investors and partners.
Intellectual property legal support: Intellectual property is a key asset for startups working on innovative solutions. The government is offering an 80% discount on patent and trademark filing fees, which reduces the cost of protecting Intellectual Property Rights (IPR).

How to register a startup under Startup India?

1: Deciding on the business structure

The startup can register using one of the following methods:
Private Limited Company (Pvt. Ltd.): This has limited liability and offers better opportunities for raising venture capital funding
Limited Liability Partnership (LLP): More flexible and suitable for small businesses with fewer partners.
Partnership Structure: Partnership structure is another option. It is less formal than the other two methods.

Once the business structure is decided, you need to obtain the necessary registration from the Ministry of Corporate Affairs (MCA). As part of this process, you will need to apply for a Director Identification Number (DIN) and Digital Signature Certificate (DSC).

2: Register on the Startup India Portal

Create an Account: Register on the official Startup India website (https://www.startupindia.gov.in/) and create an account.
Fill the Registration Form: Once logged in, you need to fill the registration form with details about your business, registration number, business category, and key business ideas. Make sure to provide accurate information.
Upload Documents: You need to upload important documents like your establishment certificate, PAN card, and proof of business activity. If applicable, also provide your GST registration number.
Self-certification: As part of the registration, you will have to self-certify that your business meets the criteria set for Startup India initiative.
Get Approved Certificate: After your application is reviewed and approved, you will receive a Startup India Approved Certificate. This certificate serves as proof of your eligibility.

Apply for additional facilities (if required)

After registering your startup, you can apply for additional facilities offered under this scheme.

Income Tax Exemption: Apply for income tax exemption as per the Income Tax Act to avail tax benefits.
Finance and Loans: If you are in need of money, you can apply for financial assistance from the Fund of Funds for Startups (FFS).
IPR Support: You can also apply for intellectual property rights and get benefits of lower filing fees.

What are the documents required to register a startup?

Establishment Certificate: Proof that your business is officially registered with the Ministry of Corporate Affairs (MCA).
PAN Card: A copy of the PAN card of your startup.
GST Registration: Provide a copy of your GST registration certificate.
Aadhaar Card: Aadhaar card of the directors or founders of the startup.
Bank Account Details: Bank account number and IFSC code of the registered account of the startup.
Business Plan: A detailed business plan that outlines your startup’s products, services, and goals.

Challenges While Registering a Startup

Overcoming Regulatory Barriers: Startups may face some red tape when dealing with government agencies.
Competition for Financing: While financing is available, competition for venture capital or loans can be fierce.
Awareness Issues: Many entrepreneurs are not fully aware of all the benefits available under Startup India. Lack of awareness about resources and schemes can be a stumbling block for some startups.

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