Startups are very important for the growth of any economy; Mr. Narendra Modi Prime Minister of India has started Startup India initiative to promote the startups to boost the Indian Economy. The startup for the purpose of Startup India is a unique service or product idea which is either aimed at providing something new or making something better by an innovation.
- What are the benefits for Registration under Startup India Initiative?
- 3 Years tax holiday
The Startups registered under Startup India Initiative will enjoy a tax holiday for 3 consecutive years out of 10 years of operations provided they are certified by the Inter-Ministerial Board ((IMB).
- Less Documentation for Government tenders
These startups are exempt from providing turnover certificates of preceding years while applying for Government tenders.
- Cost Reduction
These startups will enjoy 80% reduction in the cost of Trade Marks and Patents.
- R&D Facilities by Government
These startups will be offered facilities at seven new research parks that will be set by the Government.
- Easy Funds availability
The Government has set up a fund of 10,000 Crore for the venture capital of these startups.
- Who can get registration under Startup India?
To get the registration under Startup India an entity;
- Must be registered as a Private Limited Company, Partnership Firm or Limited Liability Partnership.
- Must not be in existence for more than 10 years
- The turnover of the entity should not be more than 100 crores (25 Crore for the purpose of availing tax exemption)
- Such entity should be working for the innovation, development or improvement of the existing product or services.
- What are the documents required for Startup India Registration
In order to get the registration under Startup India following documents are required;
- Letter of Recommendation
- Registration Certificate
- Objectives of the Business