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Startup India Registration : What it is and benefits?

Startup India Registration : What it is and benefits

What is startup india registration?

Startup India Registration is the great opportunity for Indians which was launched on 16th January 2016 by PM Narendra Modi ji. Government provides various benefits to startups as the government wants to promote businesses with unique ideas and entrepreneurs who have passion to do something new and make India number 1 country in the world. The main authority to give startup India Registration is the Department for promotion of Industrial and Internal Trade (DPIIT)

There is a huge growth in businesses after the startup India scheme launched. Now, every Indian wants to start their own business and do something unique. This is the greatest opportunity for Indians. The Government of India also launches various schemes for startups companies like the government holds various fests for startups nationally and internationally. So, entrepreneurs build their network and make various new connections with other entrepreneurs which help them to grow their business and also help others for their business growth. They also can connect with investors and raise funding from them for their growth in their business.

Read Also : What is company registration?


What are the startup india registration benefits?

There are many successful startups in India like Zepto, BoAt etc. and they build very fast. They have unique ideas of their businesses, and they grow their business very rapidly. Startup India Registration gives various benefits to businesses that are registered under startup India like benefits in funding, financial aspects and registration benefits. Following are the various benefits of Startup India Registration

  • Very Simple registration process : There is a very simple process for every entity which wants to register under Startup India to get registration under Startup India but first it should comply with the eligibility criteria which is prescribed by the government. The whole process is online and requires less documentation to get registration. Any business can get recognition under startup India after complying eligibility criteria and some conditions and after getting startup India Registration. Once the process is completed you get a startup India recognition certificate from the department, and you can use that certificate wherever you need. 
  • Exemption under Income Tax : Entities which are registered under startup India can apply under Income Tax for an exemption u/s 80 IAC of Income Tax act, 19610 and get various tax benefits like it can avail tax exemption for consecutive of a three years out of first ten years but there are some conditions also like entity should be Limited Liability Partnership (LLP) or Private Limited Company or it is incorporated between a time period from 1st April 2016 to 01st April, 2021. Startups can avail tax exemption for a period of ten years from the date of incorporation. 
  • Rebate under Intellectual property : Every entity which is registered under startup India can take exemption under trademark and patent filing. They can avail themselves of a rebate of 80% in filing of patent, trademark and copyright application. This is a great benefit for startups who want to get a trademark or patent or any intellectual property. 
  • Tax exemption on Angel Investment : Entities which are registered under Startup India can get tax benefit as exemption from tax on the angel investment fund. But there is one condition that exemption is granted only when the total amount of paid-up share capital of the company and security premium amount should not be more than Twenty-Five Crores Rupees (25 cr.). 
  • Exit is Easy for startups : There is an easy exit option for every startup which is registered under startup India as it takes only Ninety days to exit from the startup India, they can wind up their company in Ninety (90) days. So, for any business who is not successful in an initial stage and wants to shut that business there is a very easy option for them to exit and the time period is very short, which is very beneficial to them. 
  • Various exemption from compliances : Every startup which is registered under startup India can get exemption from various company compliances under companies act, 2013. Under Companies Act, 2013 there are various exemptions provided to startups companies like there is no mandate to startup companies to prepare cash flow statements as per clause 40 under section 2 of companies act, 2013 and various other exemptions granted to companies registered under startup India. 

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Startup India registration opens doors for many entrepreneurs who want to grow their businesses. This registration helps them to grow their business at an initial stage which is the hard phase in the business. In a period of startup India which is 10 years from the date of incorporation of the company it helps business by giving them these benefits and there are several more benefits. So, that business can avoid wasting their time and money on compliances and give their time to grow their business and make a profitable and stable business. Today’s many businesses registered under startup India to get many benefits and they eventually grow. Due to many reasons a business can go for startup India Registration, and these are the benefits for having the registration. When you register under Startup India you can take advantage of these benefits and minimize initial expenses of your business and utilize the money for the growth of your business.  

Our advice to take Startup India registration for these benefits and many other benefits which you get along with startup India Registration. Everyday thousands of businesses are going to register under Startup India. The process is very simple and easy for getting recognition on Startup India. You just need to follow simple steps and prepare a registration form and file it with the department. Businessmen must seek the benefits for the registration. Startup India registration gains chances of fundraising, giving advantage by giving rebates on intellectual property like trademark, patent or copyright and reduced interest rate on loan and tax exemption and getting recognition on GEM portal many other advantages as discussed earlier. There are some eligibility criteria for startup India registration, if the entity follows the criteria, it can easily get recognition under Startup India. 

Read Also : How to Apply for GST Registration? Know Step by Step Process

Updated on: 27 Mar, 2024 | 7 min read

Vanshika Gupta