How to register a startup company in India | 6 Easy Steps

 

In recent years, the growth of entrepreneurship in India has accelerated, with an increasing number of people opting for how to register a startup company in India rather than continue working. 

The government of India's several efforts, such as the Make in India initiative, Startup India, and Standup India, have all contributed significantly to this rise. 

However, deciding to start a business is only the first step. It is also necessary to understand how to obtain the status of a recognised startup. 

We will look at the procedure of registering a startup company in India in this post.

 

Steps to Register a Startup Company in India

 

Step 1: Establishing a Company in India

The first step is to register a startup company in India. There are four different structures that you may use to start a business in India. 

• One Person Company (OPC) 
• Private Limited Company Registration Online
• Partnership Firm 
• Limited Liability Partnership (LLP) 

You only need to follow the standard procedure, which involves completing a registration form and paying the fees.

 

Step 2: Create an account with Startup India

Now you must register your organisation or company as a startup under the government's Startup India scheme. 

All you have to do is fill out the form on the Startup India website. 

You must complete all of the fields and upload a specified amount of documents.

 

Step 3: Submit documents in PDF Format

• Along with the registration form, you'll need a letter of recommendation. Any of the recommendation letters listed below can be obtained.

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• A letter of recommendation from an incubator known at a post-graduate college in India, in the DIPP-approved format. This is about the business's innovative nature; OR 
• A recommendation letter from an incubator that the Government of India finances as part of any specific scheme to foster innovation; OR 
• A letter in DIPP format from any of the Government of India's authorised incubators.
• A letter of funding from an Incubation Fund, Private Equity Fund, Angel Fund, Accelerator, or Private Equity Fund registered with SEBI that endorses the innovative nature of the business; OR 
• A recommendation later from the Central or State Governments of India; OR 
• A patent, filed and published in the Journal of the Indian Patent Office in areas related to the nature of the business being promoted.

• Certificate of Registration or Incorporation: You must upload your business's or LLP's certificate of incorporation, or the registration certificate for a partnership company.
• Describe your company in a few words

 

Step 4: Mention whether you require tax exemption.

In India, startups are exempt from paying income tax for the first three years, but they must be validated by the Inter-Ministerial Board to qualify (IMB). 

Companies that have registered with DIPP are exempt from this requirement because registration is sufficient to receive the advantages.

 

Step 5: Self-certification of the conditions listed below

• You are a partnership firm, an LLP, or a private limited company.
• Not earlier than 5 years, your company must be incorporated or registered in India.
• Your company's annual revenue must not exceed Rs 100 crore.
• The company must continue to come up with new ideas or improve the old system in its unique way.
• Your company must be a new concept, not a division or reconstruction of an existing one.

 

Step 6: Obtain your identification number

You will receive an immediate recognition number after submitting this registration. Only once the authority has reviewed all of your uploaded documents will you receive a certificate of registration or incorporation.

You must be cautious when uploading the data since any errors might result in a fine of up to 50% of your paid-up capital of Rs 25,000 at the very least.

Now that you understand the startup eligibility and registration requirements. Enrol your company in the Startup India programme to take advantage of all of the government's perks.

The government has also created initiatives like the Standup India programme to enable weaker sectors of society and women entrepreneurs to access bank loans ranging from Rs. 10 lakh to Rs. 1 crore as part of the Startup India Action Plan. 

The Pradhan Mantri MUDRA Yojana (PMMY) was created to assist small and micro businesses in obtaining the funding they need to manufacture and promote their goods. 

Such incentives have encouraged entrepreneurs to consider starting what they believe is the best business in India.

 

Conclusion

We live in a period when entrepreneurship and ingenuity are rewarded. These facts are supported by the Indian government's recognition and incentives for startups. 

When a startup registers, it receives environmental and labour law compliance benefits. Startups benefit from capital gains and investment tax exemptions. 

Startup registration also aids in the closure of firms within a ninety-day period. Startups also benefit from an 80% discount on patent filings and a plethora of investment alternatives.

 

Frequently Asked Questions 

 

1. Can a One Person Company (OPC) benefit from the Startup India Initiative's incentives?

Yes, a one-person company can register and benefit from the Startup India initiative's incentives.

 

2. When can I expect to receive my Startup Recognition Certificate?

When an application is submitted with all of the required documentation, permission will be granted within two working days.

 

3. Is it possible to register as a foreigner under the Startup India initiative?

A foreign individual can form a partnership and register it on the Startup India website under the LLP Act.

 

4. Who is eligible to register under Startup India?

To be classified as a startup under the "Startup India" initiative, an organisation must meet specific criteria. 

To be in the list of startups by the Department of Promotion of Industry and Internal Trade (DPIIT), your company must meet the following criteria:

• Has obtained private limited company registration online, OPC, LLP or partnership firm certificate.
• For any given financial year, its total revenue is less than INR 100 crore.
• The organisation is pursuing product/service innovation and has the potential to create jobs.
• It will only be as a startup for the first ten years after registration.

Register your business with the DPIIT if it fits the above conditions.

 

5. What are the benefits and drawbacks of starting a business?

Work Environment, Flexibility/Freedom, More Responsibility, and Steep Learning Curve were among the top Pros, while Lack of Structure, Low Compensation, Long Working Hours, and Uncertainty / Instability were among the top Cons.

 

6. What is the significance of startup businesses?

Startups may be little businesses, but they may have a big impact on the economy. Startups are the epicentres of innovation; they produce jobs, which means more employment, which means a stronger economy; and they have a direct impact on the cities in which they reside.