Now a days, Startups are getting very popular in India. The government has initiated a Startup India Registration under the leadership of PM Narendra Modi to recognize and promote startups by encouraging innovations & expansion of business. Startup India scheme is started to transform India into a job-providing market rather than a job-seeking market. Only eligible registered entities such as Private Limited Company, Limited Liability Partnership or Partnership firm can get recognition under Startup India Scheme and it can be done online through Startup India official website.
A startup is a newly established entity registered either as a Private Limited Company or as a Limited Liability Partnership or as a Partnership firm. Startups are usually small in size, started by 1 or a group of individuals. The key differentiation between Startups and Other New Businesses is that a Startup offers new innovation-driven products or service that is not being provided by any other existing business in the same way. The business either designs and develops new products or services or made innovations in existing products/services into something better.
Benefits of registering under Startup India Recognition Initiative
Recognised Startups can avail loan facilities from Non-Resident Investors/ Foreign Investors (External Commercial Borrowings-ECB) upto $3 million i.e upto Rs.22.5 Crores every financial year through simple RBI compliance mechanism.
Indian Government have the remaining balance of Rs. 8,400 crore in their corpus which they are willing to invest in Startups. Till now, Government has already funded more than Rs. 1600 crore in 251 Startups. This is known as FoF (Funds of Funds Scheme).
There is an Opportunity for Startups to list products on Government e-marketplace for market visibility. There is an Exemption for Startps registered under Startup India Scheme from prior experience or turnover and Security deposit for filing tenders.
After getting Startup India Registration, Recognised Startups can manage their PF, Gratuity, ESIC and Environmental Law Compliance through simple self-declaration on their own.
Government grants 50% discount on Trademark fees, 80% Rebate on Patent filing fees, if Startups are registered under Startup India Scheme.
Eligible Startups can claim exemption for 3 consecutive financial years out of their first ten years since incorporation from paying income tax.
Many Loans, Rebates & Incentives like GST rebate scheme, taxation rebates are announced by the State Governments of India.
Under Section 56 (2) (VIIB) of Income Tax Act, 1961, Investments made by an Accredited Investors, Non-Residents, AIFs into eligible Startups are exempted from Angel Tax upto Rs.25 crores
For a period of 5 years from the Incorporation Date, Private Limited can take deposits from its members under the Companies (Acceptance of Deposits) Rules, 2014.
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