An entity (Business) will be considered as a Startup if following conditions are satisfied
- Turnover of the entity (Business) for any of the financial years since registration has not exceeded INR 100 Core
- Entity (Business) is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation
An Entity (Business) will be treated for Startup till the expiry of 10th Year from the date of incorporation. After completion of 10 years such entity will be ease to call as Startups.
An Entity will be eligible for Startup if such business is:
- Registered as company under companies Act 2013
- Registered as Limited Liability Partnership under LLP Act 2008
- Registered as a partnership firm registered under Partnership Act, 1932)
Government has prescribed certain benefits to startups. If above mentioned conditions are satisfied then such startups can apply for Startups Recognition. After successful obtaining a Startup Certificate and Approval u/s 80 IAC, an Startup will be eligible for following benefits:
A registered startup is eligible for Self Certification and Compliances under 9 labour and environmental Laws.
A registered Startup is eligible for waiver of Fee for Intellectual Property Right related Services (IPR) like- trademark Patent Registration etc.
A registered Startup is eligible for tax exemption. Such Startups is not required to pay any income tax for any consecutive 3 years from first 10 years of their incorporation. Further such startups are also not liable pay capital gain tax if certain conditions are satisfied.
Startsup are eligible to avail extra benefits from governments GEM portals. Such Startups are not required to pay Earnest Money Deposit [EMD] and can avail Relaxation of prior experience and prior turnover.
If certain conditions are satisfied then winding up process of Startups can be completed within 90 days of application
A registered Startup is always a preference of Investor. So if an startups is registered with DIPP then such Startup can easily avail loan/funding from investors.
Getting our-self registered with Ministry of Commerce and Industry (Startup India) is the first step to avail various benefits and save taxes whether its capital gain or Normal income Tax on Business Income.
An online application is required to be filed with “Department for Promotion of Industry and Internal Trade” (DIPP or DPIIT). Such process takes 3 to 7 days to approve our application.
Following Documents will be required for Startup Recognition Certificate
- Board Resolution authorising any director to file Startup Recognition application
- Certification of Incorporation
Following information will be required
- Mob and Email ID of Authorised Person of Startup
- List of total no of employees
- Brief Description on
- What is the problem the startup is solving
- How does your startup propose to solve this problem
- What is the uniqueness of your solution/ Startup
- How does your startup generate revenue
After successful registration u/s Startup recognition program we can apply for Tax exemption by filing form 80 IAC. Again its online application and following documents will be required:
- Registration certification obtained from DIPP
- Memorandum of Association
- Board Resolution for applying Exemption
- Two minute Video about what your Startup does, Showcase the working of the prototype/proof-of-concept developed by you. Please share link of video available at public domain like youtube etc.
- PPT with maximum 5 slides contains, brief about startups, details of employees, credential of founders, directors, images of product/technology, and website and mob no reference
Generally it takes 2 to 3 months to obtain tax exemption certificate.