Startup India
The startup ecosystem in India has been thriving at an unprecedented rate ever since GOI came up with its flagship scheme viz. Startups India. This scheme ensures easy credit availability, tax exemptions, and a multitude of growth-oriented schemes, allowing emerging businesses to experience hassle-free growth. Launched in 2016, Startups India has become a one-stop avenue for growth-seekers. As a part of legal formalities, one must be onboarded with Startup India via online registration before availing of the benefits. Let’s unfold the legal requirements and benefits of the Startups India scheme.
List of schemes under the Startup India Initiatives
The Startup India initiative facilitates various schemes dedicated to thriving emerging businesses, lacking financial and technical aid. Below are some frontline schemes that fuel this initiative.
Startup India Seed Fund Scheme (SISFS):
SISFS provides financial assistance for major events like introducing products into new markets, transforming prototypes into a real-world product, expanding product portfolios, etc. The scheme provides two types of corpus: 20 lacs for early-stage validation and Rs 50 lacs for elevating the production via debentures or debt-linked instruments
Fund of Funds for Startups (FFS):
Backed by the whopping corpus of Rs 10000 crores, FFS is dedicated to boosting the Indian startup ecosystem. FFS doesn’t ensure direct access to funds for startups. Rather it facilitates capital to AIFs i.e. Alternative Investment Funds, which further invest in emerging businesses.
Credit Guarantee Scheme for Startups (CGSS):
CGSS renders guarantee covers to member institutes (MIs) via Trustee (NCGTC). MIs play a pivotal role in financing eligible startups in India. The guarantee appears in the form of working capital, venture debt, debentures, subordinated debt/mezzanine debt, optionally convertible debt, etc. CGSS nullifies the payment default by providing the lenders with adequate protection.
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Startup India Hub:
It is a flagship platform wherein diverse stakeholders collaborate and share ideas for prosper future. Besides, it renders access to mentorship, resources, and networking opportunities, allowing startups to scale and grow.
National Startup Awards:
These awards are available to startups doing a commendable job in transforming business and life. National awards are a recognition that encourages emerging businesses to work out of the box and make valuable contributions towards the nation’s growth and society.
Steps for Startup Registration in India with the Startup India
Getting onboard with Startup India is a hassle-free process. You must comply with the following steps to get easily registered.
Step 1: Incorporate your Business
Business incorporation is the first step in this process. This involves selecting a legal structure, drafting the charter documents and filing a prescribed form. Startups India largely favour registered entities leveraging structures like private limited companies and LLPs. Both these structures fall under the MCA i.e. the Ministry of Corporate Affairs and have distinct governing legislations namely the Companies Act 2013 and LLP Act 2008.
Step 2: Register with Startup India
Once your business is registered, the next step is to complete registration formalities on the Startup India portal. Here is how you can do so:
- Visit the Startup India portal
- On the home screen, click on the ‘Register’ button
- Enter your credentials such as name, contact details, etc
- Click on the Register tab.
- Next, enter the OTP (the secret numeric code sent to your email ID)
- Enter the details concerning your business such as name, stage of the startup, user’s type, etc.
- Click on the Submit tab to create the profile.
The successful profile creation ensures the activation of the benefits and schemes which you can avail of accordingly. Some frontline benefits include access to funding options, learning resources, market access, and government schemes.
Step 3: Secure DPIIT Recognition
Securing DPIIT recognition is the next step in this process. You can apply for the same on the National Single Window System (NSWS) website after selecting the “Apply for DPIIT Recognition’ option listed under the ‘Recognition’ tab on the Startup India portal.
Registering with DPIIT ensures access to various benefits, including affordable IP services, relaxed norms concerning public procurement, seamless winding up, availability of Funds of Funds, tax holidays for 3 years, etc.
Step 4: Recognition Application
This step requires filling out the ‘Startup Recognition Form’ wherein details concerning directors/partners, business operations, addresses, etc are required to be entered. The form entails various sections boasting distinct fields. Wrap up the form filling after accepting the terms and conditions.
Step 5: Documents for Registration
Keep the following documents handy before you delve into the startup India registration process:
- PAN Number
- Incorporation/Registration Certificate of your startup
- Authorisation letter of the authorised representative of the company, LLP or partnership firm
- Proof of funding, if any
- Proof of concept like pitch deck/website link/video (in case of a validation/early traction/scaling stage startup)
- Patent and trademark details, if any
- List of awards or certificates of recognition, if any
Step 6: Inspection of Documents
The submitted paperwork shall undergo inspection in this step. The Startup India officials shall inspect the dossiers for compliance, legitimacy, and accuracy. Typically, the inspection process lasts for 2-3 days.
Step 7: Grant of the Recognition Number
If the officials do not find any loophole in the documents, they will grant the recognition number. The facilitation of this number confirms the activation of all the benefits and schemes, which the applicant can avail of accordingly.
Conclusion
Building a business from scratch is not as difficult as it was a few years ago. If you have an idea that can potentially drive money, you won’t have to worry about funding or other resources as an initiative like this has your back. Registering with Startups India is an obvious choice for businesses seeking fiscal aid and growth opportunities. Any eligible startup can register to this portal and get access to a suite of schemes to elevate their footprint and growth.
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