Guide

How to Register a Startup Company in India?

Having your own business and not being confined to the walls of the 9 to 5 occupation is a dream for many. The thought of running a business and being one’s own boss is pretty empowering. The “Startup” concept has dynamically transformed the business world. In today’s world, any individual’s idea can be turned into reality. The popularity of the startup concept is growing rapidly and motivating people to follow their dreams and not fall prey to the mundane 9 to 5 world. 

What is A Startup?

Let’s try to understand what a startup is and how they are formed. A startup is a new concept of forming a business. A company that is formed by one or more entrepreneurs with the goal of delivering a unique product or service to the audience is known as a startup. In today’s world, more than 10% of people from the 18 to 34 age range have expressed a desire to quit their monotonous jobs and start their own businesses. Startups are initially formed with the help of funding from the entrepreneurs’ own pockets or loans from friends and family. In the last 10 years, many startups have gained a great amount of popularity and have brought success to many entrepreneurs. 

Documents Required For Startup Registration?

Now that we understand what a startup is, let’s go over the documents that are required to register a startup. Following are the documents that are required to be uploaded in a PDF format while registering your startup.

  • A recommendation letter from an incubator that the Govt. of India funds and supports as part of any scheme to engender innovation.
  • Certificate of Incorporation of your company or LLP, or the certificate of registration for a partnership company. 
  • Company PAN card
  • Bank details of the company. 
  • PAN card of all the Directors. 
  • Aadhar card of all the Directors. 
  • Contact information and E-mail IDs of the directors.
  • Proof of concept. 

These are the documents required for startup registration in India

Eligibility Criteria For Startup Registration 

Besides the mandatory documents, there are also eligibility criteria that are absolutely necessary to be followed while registering a startup. Let’s try to understand what makes your company eligible to be registered as a startup.

  • The firm or company is required to be funded by an Incubation Fund, an Angel Fund, or a Private Equity Fund. 
  • A patron guarantee from the Indian patent and trademark office is also required to be eligible. 
  • The firm is required to have innovative ideas and schemes. 
  • The firm must be a Private Limited Company or a Limited Liability Partnership.
  • The company must have obtained approval from the Department of Industrial Policy and Promotion (DIPP). 

What is The Procedure For Startup Registration?

Now that we have gone through the required documents and the eligibility criteria for the registration of a startup, it is time to have a look at the procedure for startup registration. Following are the steps a company is required to follow for startup registration. 

Step 1 :- Incorporate Your Business 

You are required to incorporate your business as a Limited Liability Partnership, Partnership firm, or Private Limited Company. The process of doing it is pretty simple and requires you to fill out a registration form. 

Step 2 :- Registration Under The Startup India Scheme 

Once you incorporate your business, get your company registered as a Startup in the Startup India Scheme of the Govt. of India. You must fill in your details and upload certain documents on the Startup India website. 

Step 3 :- Upload The Required Documents

You will be required to fill in the details of the Directors and the company. Refer to the list of documents we have shared above. You will be required to submit those documents during the application process. 

Step 4 :- Mention if You Need Tax Exemption

In India, startups are not required to pay income tax for the first three years. If you also wish to avail this benefit, you will be required to obtain certification from the Inter-Ministerial Board (IMB). 

Step 5 :- Self-Certification of The Following Conditions

  • Your company is either a Private Limited Company, an LLP, or a Partnership firm. 
  • Your business registered in India or incorporated, not before 5 years.
  • The company is required to consistently innovate unique ideas and products.
  • The idea of the business must be unique and not copied from an existing business.
  • The turnover of your company must not be above 100 crores. 

Step 6 :- Recognition Number 

Once you successfully complete the registration, you will receive a recognition number immediately. 

Note that, you must pay close attention to the data while uploading it, as any discrepancy found in it can make you liable to pay a fine of up to 50% of your paid-up capital or minimum of Rs 25,000. 

Now that you are familiar with the process and the documentation required to register your business as a startup company in India, start the process today with JustStart’s experts. JustStart is a team of experienced and skilled legal consultants helping startups get registered hassle-free. Let JustStart’s experts assist you in Startup India registration online and become your own boss. 

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