All you need to know about benefits of Startup Registration

A startup is a new business setup that is small in nature and initiated by a single or a group of individuals. It makes the startup different from other businesses. A startup presents a new product or service that is not available at some other place. The base of a startup is modernization and strangeness.

On 16 January 2016, the Indian Government launched a scheme of a startup. It has now become very popular in India. Startup India scheme launched in India, the inventors from pan India are conference on a general portal that clasp new ideas and advocates employment.

Concept of Startup

A startup is a youthful company founded by one or more entrepreneurs to develop a unique product or service and bring it to market. By its nature, the typical startup tends to be a shoelace operation, with preparatory funding from the founders or their friends and families.

Eligibility Criteria for startup recognition

• A period up to  10 years from the date of incorporation, if it is established as a private company (as per companies act, 2013) or a limited liability partnership (in the LLP act, 2008) or we can say that registered as a partnership firm under the provision of section 59 of the Indian partnership act, 1932.
• An enterprise shall be considered as a startup only till 10 years from the date of its registration
• Turnover of the entity since incorporation shall be less than 100 crore rupees for any of the previous financial years.

Tax exemptions in startup India plan

• Startup India tax exemption under section 80 IAC – says that the purpose of the startup is to apply for tax exemption after being registered by DPIIT. DPIIT registration certificate and sanction of the inter-ministerial board allow the startup to avail tax sightseeing for 3 consecutive financial years out of its first 10 years since consectary.
• Tax Exemption under section 56 of the income tax act (Angel Tax)- Unlisted companies raise the capital by way of issuing the shares and the share prices are more than FMV of share sold. Entity after getting registration as a startup is eligible to apply for angel tax exemption. An entity must be recognized by a department for the promotion of industry and internal trade and the cumulative amount of paid-up share capital and share premium of the startup must not exceed Rs. 25 crores after the anticipated share issue.

Startup India Scheme

The ultimate objective of the Startup India scheme is to trigger a sense of innovation among upcoming entrepreneurs. The startup India scheme was founded to trigger employment in the country and stimulate economic growth. Through this verge, the government is striving to clasp new ideas, research, and innovation.

Now, Let’s explore the benefits of Startup India registration.

Benefits of Startup India Registration

Self-Certification

• Startups are more permeable to failure in the initial stage of their lifecycle. Startups are permitted for self-certification with nine labor and circumjacent laws.
• Concerned authorities would not conduct any sort of investigation for a period of 3 years.

Tax Exemption

• Under the Startup India scheme does not need to entertain any tax liabilities for 3 years.
• Incoming funds from hatcher and apostle investors are also exempted.
• The tax exemption for 3 years means that a startup can capitalize on the funds in their own way and use it for business growth.

Mobile App

• We can complete registration through a Startup India mobile application. In the application encloses a single form that permits startups to complete the registration formalities.
• This mobile application have single-window clearances for the startups that let cater to formalities regarding registrations, approvals, filing compliances, etc.

Networking Options

• An advantage allows the startups to discover more alternatives for funding as well as a business idea to ascertain growth.

Government Tenders

• Government projects are underpinned with evolution probable and monetary incentives.
• Government projects are not easy to enlist due to huge competition.

Research and Innovation Benefits

• Startup India research and advocates innovation among those who are projecting themselves as entrepreneurs in the upcoming time.
• The government is committed to establishing seven new research parks for the research and development of the products.

Startup Patent Application and IPR Protection

Startup India also dealt with the services of intellectual property and resources to protect the patented ideas of the startup against possible infringements. It also helps them commercialize their IPRs. This includes:

• Swift processing of startup patent application.
• Rendering 80% rebate on the patent filing when contrasted with other companies.
• Rendering 50% rebate on the trademark filing when contrasted with other companies.

Hassle-Free Winding Up Of the Company

• Startups under the Startup India scheme can completion their business within 3 months.
• To ensure the consolidated closure of the foundation, startups should hire failure experts for liquidating the assets.

SIDBI Fund as Corpus Fund

• Allocation of Rs. 10,000 Cr. by Indian government for the development of the startups in the country.

Access to the Government Marketplace

• Government e-Marketplace (GeM) one of the prominent markets for Government Departments to procure services and products.
• This opens a door of opportunities for startups looking to work on trail orders with the government.

Key features of Startup India Campaign

• Single Window Clearance via the mobile application
• Corpus fund of Rs 10,000 crore to triggers the development of the startup.
• The patent registration fee would be 80% less than the original fee.
• Liberalized Bankruptcy Code for the seamless exit.
• Three years of relief from mystifying inspections
• No tax on profit for 3 years
• The non-existence of red tape
• Self-certification compliance
• Encourage innovation and entrepreneurship.

Conclusion

The Indian government has launched the Startup India scheme to boost employment in the country. It also supports innovation and research by providing the base for new business ideas seeking funds to thrive in the competitive space. For more queries, reach out to our team of experts at Legal Window.