In addition, we also offer cost-effective compliance solutions with a ton of benefits. With these leverages, you can grab massive networking opportunities offered in the bi-annual startup festivals. These commercial fests are hosted domestically and globally by the government of India. We have expertise in defining convenience while carrying out its registration services. Our trained and highly qualified staff has CA, CS, and legal matter experts with decade-long real-time experience. Over hundreds of startups are named to us in the last few years.
Benefits of Registration under Startup India Scheme
Income Tax Benefits
Startups can have an income tax exemption for a span of three years. It is measured from the date of its incorporation mentioned on the certificate. This certificate is provided by the inter-Ministerial Board of Certification.
Upon being recognized by the Department for Promotion of Industry and Internal Trade, its capital gain, which is lesser than INR 25 Crore will be exempt from capital gains tax under Section 56 of the Income Tax Act, 1961-2014. It is offered if its aggregate amount of paid-up share capital and share premium upon issuing shares is lesser as per mentioned bracket.
Financial Benefits
Startups can have a rebate on intellectual property rights (IPR) costs of 80% on patents and 50% on trademarks. This is aided by the government-supported facilitators who support protecting and commercializing the IPRs. The fast-track verification & disposal of the IPR applications are also carried out.
Registration Benefits
The registration of startups in India is not easy. Tailormade takes up the charge and reduces the burden of its incorporation and registration. Under the scheme, the Startup India Hub, which is an online portal for integrating with opportunities, was started. It helps them to overcome their challenges, leveraging the benefits of the government-run scheme.
Funding Benefits
There are certain states that offer seed funding to startup companies. It’s also a scheme run by the government. Discover more about these benefits here.
Regulatory Benefits
Under the Startup India Scheme, the new organisations can follow self-certify compliance for six labour laws and three environmental laws. It requires a simple online procedure to go through. For labour laws compliance, there is no provision to conduct verification for a period of 5 years. It can happen when at least one level senior to the inspecting officer has registered a credible and verifiable complaint of violation. The environmental laws also favour startups that are categorized under the ‘white category’ (as defined by the Central Pollution Control Board). They can self-certify compliance, and only random verifications go on in this case.
Public Procurement Benefits
The Inter-Ministerial Board of Certification and a DIPP (Department of Industrial Policy and Promotion) issue a number in the name of the company. It lets you list as a seller on the Government of India’s e-procurement portal – Government e-Marketplace. It shows the inside track on all Government of India Ministries/Departments/Public Sector undertakings subject to your ability. This ensures benchmark quality and technical adaptability. Certified startups can also have exemptions on the earnest money deposit in the bidding together with the requirements related to prior turnover and experience.
Faster Exit Benefits
The termination process of the startup is simpler, as the insolvent professional can have the closure of operations at lightning-fast speed. It also lets them sell goods and pay creditors while recognizing limited liabilities. Startups with a not-so-complex debt structure or the ones who meet the criteria under this scheme can wind up within 90 days.
Checklist of Documents
An organisation would be a part of the startup India Scheme if any of these possibilities are there:
- It is a registered private limited company, partnership firm, or limited liability partnership in India.
- The incorporation has been completed less than ten years from the date of incorporation/registration.
- The turnover in any financial years since incorporation/registration has not exceeded INR 100 Crores.
- It has a DIPP number.
- It is financially supported by an incubation fund, angel fund, or private equity fund that is registered with the Securities and Exchange Board of India (SEBI).
- It has a patron guarantee from the Indian Patent and Trademark Office.
- It has a recommendation letter from an incubator.
- Its capital gain is not applicable for income tax.
- It is involved in innovation, development, or improvement of products or processes or services, or it is modeled as a scalable business with a high possibility for creating employment opportunities or wealth.
