Process of Registering a Business

 

INTRODUCTION

A start-up may be a venture that's initiated by its founders around a thought or a drag with a possibility for significant business opportunity and impact. Often the particular development starts even before that with an enquiry of a thought or a meaningful problem worth solving and building a committed founding team aligned with a shared vision to form that vision into reality.

 

Who can register with start-up India?

 

To register under start-up India the business must be registered as a

 

-Private Ltd. under Companies Act, 2013

-Limited Liability Partnership under the indebtedness Partnership Act, 2008

-Partnership Firm under the Partnership Act, 1932

 

The turnover of the business for any of the financial years since incorporation/ registration has not exceeded Rupees 25 crores.

 

The business is going to be recognized as Start-up is for a period of seven years from the date of its incorporation/ registration; however, within the case of Start-ups within the biotechnology sector, the amount shall be up to 10 years from the date of its incorporation/ registration. Any entity formed by splitting up or reconstruction of a business already alive shall not be considered a ‘Start-up’.

 

The Business is functioning towards innovation, development or improvement of products or processes or services, or if it's a scalable business model with a high potential of employment generation or wealth creation.

 

What are the benefits of signing up with start-up India?

 

• Start-ups shall be allowed to self-certify compliance for six Labour Laws and three Environmental Laws through an easy online procedure.
• In the case of labour laws, no inspections are going to be conducted for a period of 5 years. Start-ups could also be inspected only on receipt of a credible and verifiable complaint of violation, filed in writing and approved by a minimum of one level senior to the inspecting officer.
• In the case of environment laws, start-ups which fall into the ‘white category’ (as defined by the Central Pollution control panel (CPCB)) would be ready to self-certify compliance and only random checks would be administered in such cases.
• One of the advantages of Start-up India includes giving eligible companies a choice to register themselves through one form. this will be done via Start-up India mobile application. the appliance features a single form to permit start-ups to register themselves.
• The Start-up India scheme includes an incubator module. This module endorses the public-private partnership. The module gives the start-up the requisite knowledge and support that are required by the start-ups.
• Start-up India also encourages research and innovation among those, who have an aspiration to be an entrepreneur. Proposals are in situ to line up seven new research parks. These parks will make sure that facilities are provided to students and start-ups to research and develop their products/services.

 

Can a foreign company register under the Start-up India hub?

 

Any entity having at least one registered office in India is welcome to register on the hub as location preferences, for the nonce are only created for Indian states. Yes, provided the corporation incorporated in India and fulfil all specified criteria to become eligible for registration.

 

For how long is a company recognised as a start-up?

 

Any business entity that has completed 10 years from the date of its incorporation/registration, and has exceeded the previous year’s turnover of 100 crores shall stop to be a start-up on completion of 10 years from the date of its registration/incorporation.

Once the appliance is complete, and therefore the start-up gets recognized, you'll receive a system-generated certificate of recognition. you'll be ready to download this certificate from the Start-up India portal.

 

How do I know my registration is complete?

 

On applying you'll immediately get a recognition number for your start-up. The certificate of recognition is going to be issued after the examination of all of your documents.

 

However, just in case the specified document uploaded/wrong document uploaded or a forged document has been uploaded then you shall be susceptible to a fine of fifty of your paid-up capital of the start-up with a minimum fine of Rs. 25,000.

 

Once the appliance is complete, and therefore the start-up gets recognised, you'll receive a system-generated certificate of recognition. you'll be ready to download this certificate from the Start-up India portal.

 

How do I register a start-up company?

 

1. First and foremost, you would like to include your business as a personal Ltd. or an indebtedness Partnership or a Partnership firm. you only got to follow the traditional procedure that has you filling up a form to urge the registration.

 

2. Then the business must be registered as a start-up. the whole process is straightforward and online. All you would like to try to do is go online to the Start-up India website and refill the shape with details of your business. Next, enter the OTP which is shipped to your e-mail and other details like, start-up as a sort of user, name and stage of the start-up, etc. After entering these details, the Start-up India profile is made.

Once, your profile is made on the web site, start-ups can apply for various acceleration, incubator/mentorship programmes and other challenges on the web site alongside getting access to resources like Learning and Development Program, Government Schemes, State Polices for Start-ups and pro-bono services.

 

3.Document Required (Online Upload)

-Support letter from one of the start-ups who is funded through central or government authorities or any incubator which is duly recognized by the govt. of India. Support letter from one among the start-ups who are funded through central or government authorities or any incubator which is duly recognized by the govt of India.

-Letter of funding which shouldn't be but 20% in equity by angel or incubation fund by an Incubation Fund, Private Equity Fund, Angel Fund, Accelerator, Private Equity Fund, registered with SEBI that endorses the innovative nature of business

-You must upload your certificate of the incorporation of your business, got to upload the certificate of incorporation of your company or LLP, or the registration certificate for a partnership company.

 

4.Need to mention if you would like to have tax benefits

All the work did you would like to travel through another step of getting approval from the inter-ministry board. It totally depends upon the ministry that they're going to approve your application or not. this is often where companies registered with DIPP get relaxation because the registration is enough to urge the advantages.

 

5.Self Certification

Check your company is qualifying all the specified conditions to avail the advantages i.e., within the first 7 years you'll apply, 25 crore turnovers must not exceed, innovation within the product is a must. the corporate has got to keep innovating something new or making the prevailing system better in its own way. Your business must be a fresh idea and not a splitting up or reconstruction of an existing business.

 

6.Acquiring the recognition number

Now, you are all set for recognition an after you apply you will get the recognition number. Certificate of recognition is going to be issued after browsing the documents submitted by you. Remember, always take much care while uploading the documents, if it's found that you simply have upload forged document or some documents were required but you forget to upload then you shall be responsible for the fine of fifty of the paid-up capital of your start-up with Rs.25000 minimum fine. Now that you simply know the eligibility and registration criteria for a start-up, enrol your company also into the Start-up India scheme and reap all the advantages provided by the government.

 

Which registration is best for a start-up?

 

This thing solely depends on you and your business idea/structure. While choosing the simplest sort of business, confine mind that this selection is as important, because of the execution of the thought. Although, compliance cost and formation cost of LLP is far in One Person Company (OPC)/Private limited if your idea needs funding and in future, you've got the decision to grow big, then Proprietorship and partnership cannot give the proper plough back that your business needs.