Startup Registration

A. Eligibility Criteria for Startup Registration:

1. Definition of a Startup: As per the Startup India initiative, a startup is an entity that is less than ten years old and has an annual turnover not exceeding INR 100 crore (about USD 13 million) in any of the previous financial years.

2. Innovative Business: The startup must be working towards innovation, development, deployment, or commercialization of new products, processes, or services driven by technology or intellectual property.

B. Benefits of Startup Registration:

1. Tax Benefits: Registered startups may be eligible for tax exemptions under Section 80-IAC and Section 56(2)(viib) of the Income Tax Act, offering relief from income tax for three consecutive years and exemption from the “Angel Tax.”

2. Simplified Compliance: Startups enjoy reduced compliance requirements and faster approvals for licenses, permits, and clearances, making it easier to conduct business.

3. Access to Funds: Registration can make startups more attractive to investors and accelerators, facilitating access to funding and mentorship.

C. The Process of Startup Registration:

1. Self-Certification: Startups can self-certify their eligibility and benefits under the Startup India program on the official portal.

2. Document Submission: Required documents, such as the Certificate of Incorporation/Partnership Deed, a brief description of the innovation, and a letter of recommendation, must be uploaded.

3. Recognition: Once the application is reviewed and approved, the startup is officially recognized by the Department for Promotion of Industry and Internal Trade (DPIIT).

D. Post-Registration Compliance:

1. Annual Self-Certification: Registered startups must self-certify their compliance with eligibility criteria every year.

2. Benefits Utilization: Startups can utilize the benefits and incentives offered by the government and other organizations to foster their growth.