These days, we’re all becoming extremely familiar with the term ‘startup’ in India. On television, even some shows promote the startup ecosystem and provide startups with investment opportunities. A startup is a newly established business that is working on innovation or improvement to an existing process or service or product. The Government of India is actively taking steps to promote the startup ecosystem. As a result, India is gradually becoming a hub for startups.
Startup registration or more commonly known as DPIIT registration in India is a process of applying for certification as a startup under the Startup India Scheme. This scheme was introduced in 2016 to promote innovation in the country.
What is Startup India registration?
Startup registration is an easy process that allows a business entity to become eligible for a lot of benefits that accompany it. Hence, DPIIT registration online can help a newly formed business in its growth stages in a lot of aspects. Through this blog, we will understand the concept and importance of startup registration in India.
As stated earlier, this is a flagship initiative introduced by the Department for Promotion of Industry and Internal Trade (DPIIT) with the following aim:
- Encourage young people towards businesses;
- Strengthen the Indian ecosystem;
- Empowerment by increasing job opportunities;
- Promote the creation of wealth;
- Encourage the ‘Make in India’ initiative;
- Make India self-dependant; and
- Increase the ‘ease of doing business’ in India.
Who can get startup registration in India?
Not all businesses in India are eligible to become startups. Only the ones that match the eligibility criteria set by the DPIIT can opt for the startup India registration. Although, the eligibility criteria are as follows:
- The entity is either a private limited company, limited liability partnership, or a registered partnership firm;
- Your firm is a newly established business, ie, is formed for less than 10 years;
- The business has not crossed an annual turnover of Rs. 100 crores in any of its financial years;
- It is working towards innovation or an improvement to an existing product or service;
- It is capable of generating wealth and employment in the country.
Process to get the startup registration in India
To get Startup India registration, you need to follow the below steps:
Form your business:
As stated in the criteria mentioned above, it is very important for startups to be legal entities. Only MCA-approved Private Limited Companies, Limited Liability Partnership, and Registered Partnership firms are the only three entities that can apply for a startup India registration. Hence, you need to have a unique business model and then get your company registration in India to be an eligible startup.
Set up your profile on the startup portal
After the incorporation process, you can go to the startup India portal and click on ‘register’. You need to enter your basic details and create an account on the portal. Thereafter, you need to set up a profile of your company by giving its details such as the name logo, CIN/LLPIN, etc. The authorities will verify all details, and approve your profile.
Fill out the DPIIT recognition form
After setting up your profile, you can apply for the Startup India registration. All you need to do is enter the following information and submit certain documents:
- Name of the startup;
- Contact details of the authorized person (i.e., name, designation, email ID, phone number)
- CIN of the startup;
- Details of the promoters;
- Number of employees;
- Self-certification that the entity is an original one and not formed as a part of split or reconstruction;
- Self-certification that the entity has not been in existence for more than 10 years; and
- Self-certify that the majority of shareholding is with Indian National promoters.
Submit necessary documents
Along with the information given above, a startup also needs to submit the following documents in a PDF format to finally complete the process:
- Letter of Authorisation;
- Pitch deck of the company;
- Link to the company website;
- Details of IP registrations, patents, and trademarks, if any;
- Video pitch of the company (if any);
- Registration certificate/Certificate of Incorporation;
- Letter of recommendation from investors (not compulsory)
- Letter of Funding from Angel Investor; and
- Copy of Aadhar card of the authorised person.
Get a DPIIT certificate!
Once you submit all these documents, the authorities will go through all the details provided by you. Hence, while opting for startup registration, you should always check and see that all the information provided by you is complete and accurate. The reason behind this is that the authorities only provide three chances of re-submission in case of any queries raised by them. To get a DPIIT certificate, you need to resolve the queries within these three tries.
Not all startups that apply for recognition get it. Hence, it is very important that while opting for DPIIT recognition keep a check on the documents and information you submit. The aim of this Startup India registration process is to promote innovation. Hence, you need to ensure that you show the USPs of your business to get a startup registration in India.