Startup India Scheme is an initiative by the Government of India for generation of employment and wealth creation. The goal of Startup India is the development and innovation of products and services and increasing the employment rate in India. Benefits of Startup India Scheme is Simplification of Work, Finance support, Government tenders and Networking opportunities.
Eligibility For Startup Registration
Business Age: Period of existence and operations of the business applying should not be exceeding 10 years from the Date of Incorporation.
Business Registration Type: The business should be incorporated as a Private Limited Company, a Registered Partnership Firm or a Limited Liability Partnership.
Annual Turnover: The business’s annual turnover not shall not be exceeding Rs. 100 crore for any of the financial years since its Incorporation.
Original Entity: Entity should not have been formed by splitting up or reconstructing an already existing business.
Innovative & Scalable: The business should be engaged in working towards development or improvement of a product, process or service and/or have scalable business model with high potential for creation of wealth & employment
Benefits
Self – Certification:
- Startups shall be allowed to be self-certify compliance for 6 Labour Laws and 3 Environmental Laws through a simple online procedure.
Fast-tracking of Startup Patent & Trademark Applications:
- Patent applications filed by startups shall be fast-tracked for examination so that their value can be realized sooner.
- Panel of facilitators to assist in filing of IP applications and Government to bear facilitation cost
- Rebate on filing of application
Tax Exemption Under 80IAC
- Eligible startups can be exempted from paying income tax for 3 consecutive financial years out of their first ten years since incorporation.
Exemption under section 56 of Income Tax Act, 1961
- Consideration of shares received by eligible startups shall be exempt upto an aggregate limit of INR 25 Crore
Eazy Winding Off Procedure:
- As per the Insolvency and Bankruptcy Code, 2016, startups with simple debt structures, or those meeting certain income specified criteria* can be wound up within 90 days of filing an application for insolvency.
Exemption from Prior Experience, Turnover and Ernest Money Deposit.