Index

1. What Is A Startup? 
2. What Are The Types Of Start-ups An Individual Can Register Through? 
3. What Are The Steps To Register A Startup Company In India?
4. How To Register Your Company Under The Startup India Scheme?
5. What Are The Benefits Of Registering Your Startup Under The Startup India Scheme?
6. What Is The Eligibility Criteria For Startup India Registration?
7. What Are The Essential Documents For Startup Registration In India?

What Is A Startup? 

A startup is a new business venture that’s typically innovative and aims to grow rapidly. It’s often characterised by a small team, a novel product or service, and a focus on scalability and disrupting existing markets or creating new ones.

What Are The Types Of Start-ups An Individual Can Register Through? 

There are several ways entrepreneurs can register a startup in India:

1. One Person Company (OPC): Registered under the Companies Act, 2013, an OPC is owned and promoted by a single individual. While one founder manages the company, it can have up to 15 directors. This structure is ideal for sole owners who want to run a business with limited liability.
2. Private Limited Company (Pvt. Ltd.): Also registered under the Companies Act, 2013, a private limited company is privately owned and distinct from its founders. It can have up to 200 members and 15 directors, with at least two members and directors required to establish it. This option is ideal for businesses with high annual turnover.
3. Partnership Firm: Registered under the Indian Partnership Act, 1932, a partnership firm requires a minimum of two partners who share the profits and losses of the business. However, they have unlimited liability. This structure is suitable for small businesses.
4. Limited Liability Partnership (LLP): Registered under the Limited Liability Partnership Act, 2008, an LLP is formed by at least two partners with limited liabilities. Combining features of both a partnership and a company, an LLP is ideal for businesses seeking limited liability and funding options.

What Are The Steps To Register A Startup Company In India?

To establish a startup company in India, whether as a One Person Company (OPC) or a Private Limited Company, you can utilize the streamlined SPICe+ form introduced by the Ministry of Corporate Affairs (MCA). Here’s a simplified breakdown of the registration process:

Here are the key steps to register a startup company using the SPICe+ form:

1. Reserve the company name using Part A of the SPICe+ form. This involves checking the availability of the proposed company name and reserving it. 
2. Fill out Part B of the SPICe+ form to complete the company incorporation process. This includes providing details such as: Registered office address, Proposed directors and subscribers, Authorised and paid-up capital, Application for DIN, PAN, TAN, EPFO, ESIC registrations .
3. Attach the required documents such as proof of identity and address for directors, memorandum and articles of association, etc. 
4. Perform a pre-scrutiny check on the filled SPICe+ form to ensure there are no errors. 
5. Submit the SPICe+ form along with the linked forms like AGILE-PRO, SPICe+MoA, and SPICe+AoA. 
6. Make the required payment for company incorporation. Once processed, you will receive the Certificate of Incorporation. 

The key advantage of using SPICe+ is that it consolidates multiple registrations into a single application, simplifying the startup registration process. Ensure you have all the necessary documents ready and follow the step-by-step instructions carefully.

How To Register Your Company Under The Startup India Scheme?

The Startup India scheme by the Government of India aims to foster the growth of startups by providing them with various benefits such as ease of compliance, tax exemptions, and funding opportunities. Here’s a step-by-step guide to register your company under the Startup India scheme:

1. Access the Startup India scheme website.
2. Click on the ‘Register’ button and create a Startup India profile by entering the required details.
3. Log in to your Startup India profile and navigate to the ‘Recognition’ tab. Click on ‘Apply for DPIIT Recognition’ and select the appropriate option: ‘Apply as a Company or LLP’ or ‘Apply as Partnership Firm’.
4. Complete all necessary details on the ‘Startup Recognition Form’ and submit it.
5. Follow any additional instructions provided and await confirmation of your startup’s recognition under the Startup India scheme.

What Are The Benefits Of Registering Your Startup Under The Startup India Scheme?

Registering your startup offers several advantages under the Startup India scheme:

1. Income Tax Exemption: Startups are eligible for a three-year income tax exemption, contingent upon receiving certification from the Inter-Ministerial Board (IMB).
2. Access to Government Tenders: Startups can apply for government tenders without fulfilling the ‘prior experience/turnover’ criteria.
3. Compliance Ease: Startups registered under the Startup India scheme can self-certify compliance with nine labour and three environment laws.
4. Government e-Marketplace Access: DPIIT-recognized startups can list as sellers on the Government e-Marketplace, India’s largest e-procurement portal.
5. Ease of Fundraising: Startups find it easier to raise funds from investors, Venture Capitalists (VCs), and angel investors due to their recognition and potential.
6. Intellectual Property Support: Startups can avail of reduced fees for processing patents and other intellectual property rights, aiding in protecting their innovations.

What Is The Eligibility Criteria For Startup India Registration?

To qualify for registration under the Startup India Scheme, entities must meet the following eligibility criteria:

1. Applicants must be Indian citizens aged 18 years or above.
2. The company should be incorporated within the last ten years from the application date.
3. Eligible entities include Partnership Firms, Private Limited Companies, or Limited Liability Partnerships (LLPs).
4. The company’s turnover should not exceed Rs. 100 crore in any financial year since incorporation.
5. The entity must have been formed initially by its promoters and should not be a result of splitting up or reconstructing an existing business.
6. NRIs and foreigners, who can register a startup in India alongside an Indian entrepreneur.
7. The startup should demonstrate a plan to develop or enhance a product, process, or service, coupled with a scalable business model that exhibits high potential for wealth creation and employment generation.

What Are The Essential Documents For Startup Registration In India?

To register your startup in India, you will need the following documents:

1. PAN card of all directors and members (partners for LLP or partnership firms).
2. Identity and address proof of all directors and members (partners for LLP or partnership firms).
3. Proof of the registered office address of the startup (utility bill or rental agreement of the registered address).
4. No Objection Certificate (NOC) from the landlord for startups located in rented premises.
5.  Partnership deed or Articles of Association and Memorandum of Association.