The growth of entrepreneurship in India has seen an upswing of late with more and more people choosing to set up their own venture rather than continuing with a ...
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The growth of entrepreneurship in India has seen an upswing of late with more and more people choosing to set up their own venture rather than continuing with a job. The many campaigns by Government of India have also helped tremendously to boost this growth, such as the Make in India initiative, Startup India campaign and Standup India. However, the intention to start a business is just the beginning. One should also know how to get the status of a recognised startup. In this post, we will help you look at the process of registering a startup company in India.
The steps can be clearly divided into two:
The first step is to set up a business. There are five types of formats you can use to set up your start up business in India. These are:
Here is how you go about the process for each category:
To create a registered partnership firm, here is what you need to do:
Here is how you register an LLP:
An OPC being a type of private company is eligible to be called an entity under the Startup India programme. The MCA has provided a simple process called the SPICe format to register an OPC. Here is how it works:
Here is how you register a private company in India if the number of shareholders is more than seven (in case it is seven or less, you can use the SPICe format described above under OPC formation):
The Startup India Action Plan from the Government of India helps startup companies in India in three ways:
The definition of a start up business in India for this purpose is any private limited company, registered partnership or a limited liability partnership, which is not more than seven years old (ten years for biotech ventures) with annual turnover not exceeding Rs. 25 crore. Various initiatives have been launched to help startups. Some of these include:
One can apply for the start up India registration, called the Certificate of Recognition for Startups, by visiting the Startup India portal and filling in the application form and uploading the necessary documents.
There are five sections to fill for startup companies in India, viz:
1. Entity Details: Here you need to put in your entity type (company, LLP, partnership), industry, sector, category, incorporation or registration number and date, name of entity and PAN details.
2. Authorised Representative Details: These will include name, designation and contact details of the person thus authorised.
3. Director(s) / Partner(s) Details: These include their name, gender, address and contact details.
4. Additional Information: You need to provide some additional details such as number of employees, stage of development of the product/ service, details of Intellectual Property Right applications, etc.
5. Tax Benefits: These are available for businesses formed/to be formed between 1st April 2016 and 31st March 2019.
6. Self-Certification: Here you need to upload your company incorporation certificate that has been issued by the MCA. The file can be in JPG, PNG or PDF format with size less than 5 MB
7. Additional Documents/Details: You can provide additional documents/details to support your application such as website link, videos, pitch deck, etc.
Once the application is complete, it will be examined and the start up India registration certificate will be provided to the entity.
Under the Startup India Action Plan, the government has also introduced initiatives like the Standup India scheme to help weaker sections of society and women entrepreneurs get bank loans between Rs. 10 lakh to Rs. 1 crore. Initiatives like the Pradhan Mantri MUDRA Yojana (PMMY) have been introduced to help small/micro enterprises get the necessary funds to make and market their products. Such incentives have helped entrepreneurs think of setting up what they feel is the best business to start in India.
You might also want to read: Does Registering A Company In India Differ From State To State?
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