What is the Startup India Initiative?

Startup India Scheme was launched on 16th January 2016 to support entrepreneurs and transform India into a country of job creators instead of job seekers. It is an initiative of the Government of India to build a strong ecosystem for startups in the country which aims to promote entrepreneurship and innovation by creating an ecosystem that is helpful for the growth of Startups in India. 

Startup India is a flagship initiative of the Government of India, intended to boost startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India.

The main objective of this program is to increase employment, foster innovation, drive economic growth, and empower upcoming entrepreneurs. This initiative includes funding support, credit guarantee fund, and tax exemptions after fulfilling specific requirements.

What is Startup India registration eligibility criteria?

Any entity can register under the Startup India Scheme, provided it meets the following criteria:

1. Age of the Applicant: Any Indian citizen who applies for the scheme must be 18 years or more. 
2. Age of the Company: The company must not be more than 10 years old from the date of incorporation. 
3. Type of Firm: Any entity incorporated as a Private Limited Company or Limited Liability Partnership in India can register under the Startup India initiative. 
4. Annual Turnover: The annual turnover should not exceed ₹ 100 crore.
5. Innovation: The company should be working towards innovation, development,  improvement of products, services, or processes and have a scalable business model.

Startup India Registration Benefits

1. Tax Exemptions: Startups registered under this scheme are eligible for income tax exemptions for three consecutive financial years out of 10 years since incorporation. This will significantly reduce the tax burden on aspiring entrepreneurs. 
2. Simplified Compliance: The compliance process for new Startups is simple with easier labor laws, environmental regulations, and self-certification options. 
3. IPR Fast-Tracking: Startups recognized by DPIIT receive a fast-track response for patent applications along with up to 80% rebate on patent filing fees. 
4. Access to Government Funding: Startup India initiative offers funding support through two funds to provide financial assistance to Startups: i). Fund of Fund for Startups (FFS) ii). Startup India Seed Fund Scheme (SISFS). 
5. Access to Government Tenders: DPIIT-recognised Startups are entitled to avail exemption on prior turnover, prior experience & earnest money deposit.
6. Preferred Bidder: DPIIT-recognised Startup gets to become the preferred bidder on CPPP portals, one of India's largest portal
7. Quick Exit for Startups: Registered Startup are notified as 'fast track firms' by MCA, enabling them to wind up operations within 90 days.
8. Mentorship and Incubation: Startups registered under this scheme can avail mentorship and incubation support from various government-approved incubators. 
9. Networking & Participation: The Startup India platform offers various online as well as offline forums to connect and network with various other businesses enabling to increase sales of the company.
10. International Reach: Startup India enables global market access and knowledge exchange for Indian Startups through bilateral government collaborations with Russia, Korea, Portugal, Japan, Netherlands, Sweden, Finland, Israel and Singapore.

Startup India Registration Process - How to Register a Startup India?

Step 1: Incorporate Your Business

The first step you need is to incorporate your company as a Private Limited Company, Partnership firm, or Limited Liability Partnership (LLP). This process can be done through the Ministry of Corporate Affairs (MCA) website and involves the standard procedures for business registration.

Step 2: Register On The Startup India Portal

Once your business is incorporated, the next step is to register it on the Startup India Login Online Portal. Here’s how to go about it: 

1. Visit the Startup India registration website and click on the “Register” button. Fill in the details, including the name, email ID, and contact number, and create a password, then click ‘Register.’
2. Then, enter the OTP (One-Time Password) sent to your email and enter other information, like your name, Startup stage, and user type. You can create your Startup India profile by clicking the "Submit" button. Your company will be considered a Startup under the Startup India program after completing this registration. 
3. Submit relevant documents such as certificate of incorporation, details of funding, and proof of concept. 

Step 3: Get DPIIT Recognition

After creating the Startup India profile, the next important step is to obtain DPIIT Recognition. For Startups to enjoy the benefits under the Startup India initiative, they must be recognized by the Department for Promotion of Industry and Internal Trade (DPIIT). Applicants can apply for DPIIT recognition by submitting the required documents. 

Step 4: Submit the Necessary Documents for Registration

As discussed earlier, you need to submit the documents to complete the Startup India Registration process and obtain DPIIT recognition for your Startup. Upload essential documents like the Certificate of Incorporation, business details, and address proof. 

Step 5: Receive Approval

Once approved, your Startup access benefits like tax exemptions, funding, and government funds from the Startup India Initiative.

Startup India Seed Fund Scheme

Startup India Seed Fund Scheme (SISFS) aims to provide financial assistance to DPIIT recognised Startups for proof of concept, prototype development, product trials, market entry and commercialization. This would help these Startups to reach a level where they will be able to raise investments from angel investors or venture capitalists, or seek loans from commercial banks or financial institutions.

Eligibility Criteria for Startups to apply under Startup India Seed Fund Scheme

The eligibility criteria for a Startup to apply under the Startup India Seed Fund Scheme shall be as follows:

1. The Startup must be a DPIIT-recognised Startup.
2. The date of incorporation of the entity shall not more than 2 years ago at the time of application.
3. The Startup must have a business idea to develop a product or a service with market fit, viable commercialization, and scope of scaling
4. The Startup should be using technology in its core product or service, business model, distribution model, or approach to solve the targeted problem.
5. Preference would be given to Startups creating innovative solutions in areas with social impact like
• waste management, water management
• financial inclusion
• education
• agriculture, food processing
• biotechnology, healthcare
• energy, mobility
• defence, space, railways
• oil and gas
• textiles, etc.
6. Startup should not have received more than Rs 10 lakh of monetary support under any other Central or State Government scheme except prize money from competitions and grand challenges, subsidized working space, founder monthly allowance, access to labs, or access to prototyping facility
7. Shareholding by Indian promoters in the Startup should be at least 51% at the time of application to the incubator for the scheme, as per Companies Act, 2013 and SEBI (ICDR) Regulations, 2018 7. Any Startup will not receive seed support more than once each