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DPIIT Recognition For Startups

The Startup India Scheme is a huge boon for startups, especially in the initial stages of their establishment. Recognition by DPIIT under Startup India Scheme confers several benefits and concessions in IP Filing. We draft documents & file the application with DPIIT for recognition as Startup in India.

Startup India Scheme

Startup India is a vital government scheme launched on 16th January 2016 to provide financial assistance and mentorship to entrepreneurs. Additionally, it provides entrepreneurs with a platform for networking with industry experts, investors, and other stakeholders. The scheme also encourages research, development, and technology transfer in the country. This scheme helps create more jobs in the country and boost economic growth. labour laws clearances, environment laws clearances, FDI approvals, approvals for property acquisitions, obtaining industrial licences and much more. That is why the Startup India Scheme is a huge boon for startups, especially in the initial stages of their establishment. Department for Industrial Policy and Promotion (DPIIT) manages the programs under Startup India Scheme. The startup India registration process has broadened the scope of development by creating job opportunities in the Indian economy.

Eligibility for Startup India Registration

  • The organization to be framed must be a private limited organization or a limited liability partnership.
  • The enterprise has not completed a period of ten years from the date of incorporation or from the registration date.
  • The enterprise did not have a turnover exceeding 100 crore annually for any of the financial years since its incorporation.
  • The enterprise should be working towards the development, innovation or improvement of the services or processes with the purpose to generate employment or create wealth.
  • The most important eligibility condition is that the Startup enterprise must not form by reconstructing or splitting up any business which is already in existence.
  • The organizations ought to have gotten the approval from the Department of Industrial Policy and Promotion (DIPP).
  • In order to get approval from DIPP, the firm ought to be supported by an Incubation fund, Angel Fund or Private Equity Fund.
  • The firm ought to have gotten a supporter guarantee from the Indian patent and Trademark Office.
  • It must have a proposal letter by incubation.
  • Capital increase is excluded from income tax under the startup India scheme.
  • The firm should give innovative ideas, products or services.
  • Angel fund, Incubation fund, Accelerators, Private Equity Fund, Angel network should be registered under SEBI ( Securities and Exchange Board of India).

Eligibility Criteria for DPIIT Registration

Before you apply for Startup Registration by DPIIT, you must fulfil certain minimum requirements prescribed under the Startup India Scheme. Fulfilling these requirements are extremely necessary to ascertain the eligibility of your business entity to be qualified as a Startup in India.

Any company with the following features falls into the category of Startup and is also eligible to avail the benefits of DPIIT

  • Age Of The Company

    Company’s Date of Incorporation should not exceed 10 years.

  • Type Of Company

    Either your company is a Private Limited Company under the Companies Act, 2013 or is registered under Indian Partnership Act, 1932 as a Partnership Firm or is registered under the Limited Liability Partnership Act, 2008 as a Limited Liability Partnership Firm.

  • Turnover Limit

    The company should have an annual turnover which shall not exceed Rs. 100 crore since its incorporation for any of the financial years.

  • A New Business Entity

    The business should be new it must not be the result of split or restructure of an already existing business.

  • Innovation Friendly

    The startup should be working towards innovation or development of new products or services or in the direction of improvising an existing one. The business model should be highly potential with the purpose to create wealth & generate employment.

  • DIPP Certificate

    Obtaining certificate from the Inter-Ministerial Board is essentially required; the Board is set up by the DIPP (Department of Industrial Policy and Promotion).

Benefits under the Startup India Recognition

The provision for Startup India Recognition was introduced to enable eligible startups to avail several benefits under the Startup India Scheme. These benefits aim to reduce the overall financial and compliance burden on Startups during the initial stages of their operations and help them cope up with challenges they often face.

The startups can avail the following benefits after obtaining the DPIIT Certificate of Recognition for Startups:

Self Certification

After obtaining the DPIIT Certificate of Recognition for Startups, the entity will be allowed to self-certify compliance under 3 Environmental Laws and 6 Labour Laws.

Start-Up Patent Application

The DPIIT recognized startups are required to pay only 80% of the fees on Patents, trademark, copyrights and design, and the fast-tracking of a patent application will be available for startups.

Easier Public Procurement Norms

  • The DPIIT recognized startups will get an opportunity to list the product on Government e-Marketplace.
  • DPIIT recognized startups are exempted from submitting Earnest Money Deposit
  • Exemption from Prior Experience/Turnover is provided for Start-ups in all Central Government ministries and departments.

Easy winding up of Company

According to the Insolvency and Bankruptcy Code, 2016, the company can be wound up within 90 days of applying for insolvency

Funds of Funds

The startups will be eligible for Rs.10000 crore funds of funds from the Alternative Investment Funds.

Credit Guarantee fund

The startups can avail Rs.2000 crore Credit Guarantee fund through the National Credit Guarantee Trust Company or SIDBI over 4 years

Tax Exemptions

  • After obtaining the Certificate of Recognition, the startup can apply for Tax exemption under section 80 IAC of the Income Tax Act.
  • The DPIIT recognized startups can apply for Angel Tax Exemption.
  • After obtaining the clearance for Tax exemption, the DPIIT recognized startups are exempted from income tax for 3 consecutive fiscal years out of its first ten years since formation.

List of Documents Required for DPIIT Recognition

Documentation is key to any application-based process, including the process of DPIIT Recognition for Startups. We have listed all the documents required for Startup Registration in the table below. Make sure you have all these documents in their prescribed formats and with the up-to-date information before you begin the procedure for DPIIT Recognition of Startups.
 
  • Registration Certificate

    It is essential for you to upload the certificate of incorporation of your company/LLP (Registration Certificate in case of partnership)

  • Email id and mobile number including contact details
  • Company details which shall include the Industry, Sector of work, the category of dealing, registered Office Address etc.
  • Evidence of concept like pitch deck, video, website link in case of a early traction and validation.
  • The details about the Directors or Partners involved with the company which shall include their Name, Photo ID, Gender, Contact number, Email ID, Address)
  • The details of the authorised representatives ( Name, contact details, Designation, Email ID)
  • Revenue model and Uniqueness of the Product.
  • PAN details
  • A Brief Description Of Business

    Provide a quick description of the innovative nature of your business.

 

Process of DPIIT Startup Registration

  • Business Incorporation Stage

    This progression is for organizations that are neither incorporated nor registered under the proprietorship form of business organization.

    It is compulsory to register either as a Private Limited Company or a Limited Liability Partnership or a Registered Partnership Firm.

    Though, there is no additional registration step is needed under the Startup India program while incorporating any of the above-discussed business forms.

  • Initiate The Startup India Registration Process

    Startup India registration process is available online. Applicant can execute the process of registration by visiting the website of Startup India Scheme.

    1. It is essential for startup to register their company in the portal owned by the Ministry of Labour and Employment “Shram Suvidha Portal”

    2. Register at Shram Suvidha Portal and then login.

    3. Once the login is done, click on the link “Is Any of your Establishment a Startup?”

    4. Follow the instructions to get registered.

    Also, it is mandatory for start-ups to fill the form related to business operations and future goals.

  • Get the DPIIT Recognition

    After creating the profile on the website of Startup India, the enterprise is required to obtain the recognition from DPIIT. This recognition is helpful for the enterprises to avail benefits like accessing to the standard quality of intellectual property services,etc.

  • Recognition Application –

    The next step would be to fill up the startup recognition form and click on submit.

  • Submit the documents for registration.

    Startups require submitting a brief description of the activities their businesses are involved in, ie, product/service or both. They should provide information that proves that their business is innovative.