Startup India Recognition, benefits and Eligibility

Startup  India scheme of the Government plans to develop an environment to support and promote entrepreneurship across the country. We will be going to know with the help of this article about the Startup India Recognition, benefits and Eligibility

What is Startup India Recognition?

Startup India is a major initiative of the Government of India which aims to create a strong ecosystem for startups and new ideas in the country to drive economic growth of the country and generate employment opportunities on a large scale.

Startup is an entity which has Startup India Registration and is registered in India for not more than five years and whose annual turnover does not exceed Rs 25 crore in any financial year. It is an entity that works towards innovation, development, expansion or commercialization of new products or services inspired by technology or intellectual property.

The action plan announced by the government in this regard hopes to address all aspects of the startup ecosystem and accelerate the spread of this movement.

What are the Objects of this Scheme?

The objective of this scheme is to promote their entrepreneurship by providing financial assistance and encourage them with the idea of employment generation. The campaign was first announced by Prime Minister Narendra Modi on 15 August 2015.

Startup India Recognition is also known as DPIIT Recognition. DPIIT stands for “Department for promotion of Industry and Internal Trade”. Every startup wants to achieve this Recognition. However, not everyone achieves this, because for this you have to fulfill some conditions. This Recognition  provides several benefits.

Know about some benefits of Startup India Recognition

Startups which are registered under DPIIT, get many benefits from the central government. This is the reason why every Startup wants to get DPIIT Recognition. Come to know about the benefits.

1. Self Certification: Startups can easily self-certify compliance for 6 Labour and 3 Environmental Laws through a simple online procedure.
2. Tax Exemption: Recognized startups enjoy income tax exemption for three consecutive financial years out of their first ten years since Incorporation. They can also apply for exemption from angel tax under Section 56 of the Income Tax Act.
3. Easy winding up of Company: Startups can shut down their business within 90 days from the date of application.
4. Patent Application and IPR Services: DPIIT-recognized startups receive significant benefits while processing patents and other intellectual property rights services at a considerably lower fee. Startup India provides an 80% rebate for filing patents and a 50% rebate for filing trademarks.
5. Access to Funding: Startup India offers two funds to support registered startups:

a.       Fund of Fund for Startups (FFS)

b.      Startup India Seed Fund Scheme (SISFS)

6. Easier Public Procurement Norms: Government ministries, departments, and public sector undertakings have been authorized to relax norms in all public procurements for startups recognized by DPIIT.

Eligibility criteria for Startup India Recognition

Startup Recognition acts as a catalyst to promote innovation and entrepreneurship in India by providing official recognition and multiple benefits to startups. It is important for entrepreneurs wishing to avail of the opportunities offered under this government-led initiative to understand the eligibility criteria.

• The Startup should be incorporated as a private limited company or registered as a partnership firm or limited liability.
• In any previous financial year Turnover should be less than Rs 100 crore.
• Any organization will be considered a start-up for the next 10 years from the date of its incorporation.
• Startup should work towards innovation/improvement of existing products, services and processes and have the potential to generate employment/wealth. An entity formed by division or reconstruction of an existing business will not be considered a “Startup”.

Note: Startup recognition by DPIIT is available through the National Single Window System (nsws.gov.in) for all eligible entities (companies, LLPs, and registered partnerships). To apply, create an account on NSWS and add the 'Registration as Startup' form. On NSWS, startups can also apply for various business approvals, including labor laws and company incorporation etc.

Conclusion:

Thus, these are the process of registering a Startup in Startup India and its short benefits. This campaign will launch indigenous Startup s that will not only make people’s lives easier through their affordable and comfortable services but will also act as a major enabler for the growth and development of the Indian economy.

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