Startup India is a program initiated by the Indian Government with the purpose of creating a robust ecosystem that fosters innovation and start-ups within the country, which can encourage sustainable economic development and create significant employment opportunities. The government hopes to equip start-ups with the resources to thrive through creativity and design.
Below are the intentions of the Startup India Movement. The proposal intends to provide assistance to startups and beyond:
- and technology parks, can provide an environment that promotes innovation and entrepreneurship. When equipped with modern facilities and resources, these centres can offer a collaborative space for start-ups and provide them with access to a range of support services, such as mentoring programmes and funding opportunities. This can help drive economic growth and create job opportunities, particularly in emerging industries. Therefore, investing in the development of infrastructure can be crucial for facilitating the growth and success of a country’s economy.
Modern infrastructure, such as technology hubs and business incubators, have the potential to encourage creativity and business enterprise. These facilities offer start-ups a collaborative space equipped with the latest resources, and access to support programmes and financing options. This can have a positive impact on economic advancements and job creation, particularly in newer sectors. Hence, it is important for countries to focus on enhancing infrastructure as it can have a major contributing role in the development and progress of the economy.
- IPR facilitation refers to measures taken to make the process of filing patents easier.
- A more favorable regulatory setting, which entails tax advantages, simplified adherence, streamlined company establishment procedures, swift mechanisms and so on.
- An objective to enhance the possibilities for financial support.
- Offer a large collection of interconnected information resources for business owners and other interested parties involved in starting new businesses.
For the startup to be eligible for the DPIIT Certificate of Recognition, they need to fulfill the specific criteria.
- Duration of the Entity’s Existence:The company should not remain active or in operation for more than a decade from its creation date.
- Type of Entity: The DPIIT Certificate of Recognition is granted to companies that are established as a Private Limited Company, a Limited Liability Partnership (LLP), or a Registered Partnership Firm.
- Annual Turnover: If a company wants to obtain the DPIIT Certificate of Recognition, it must have had a yearly revenue of at least Rs. 100 crore during any fiscal year since its establishment.
- Original Entity: In order to be eligible for the DPIIT Certificate of Recognition, the company must not have been formed by dividing or duplicating a previously established entity.
- Innovative Scalable Entity: The organization must strive to enhance or advance a product, process, or service.
- The business should possess a flexible model that can expand and produce both riches and job opportunities. It should have the capability to generate employment or generate wealth.
Procedure to get DPIIT Certificate
To obtain the DPIIT certificate of recognition, the entity needs to follow a set of simple steps outlined below.
Incorporation of the Business
As mentioned earlier, the organization needs to first establish their business as either a Private Limited Company, Partnership firm, or a Limited Liability Partnership.
Rewording: Enrolling a company in the Startup India initiative.
In order to receive the DPIIT certificate of recognition, the company must undergo registration under the Startup India Scheme.
Apply for Start-up Recognition
In order to obtain the DPIIT Certificate of Recognition for Startups, the applicant unit must visit the Start-up India Recognition portal and complete the registration process.
Include the subsequent particulars when filling out the Start-up Recognition form:
- Information about the Entity: Characteristics of the organization, its field of operation, related sectors, classifications, as well as the unique identifying numbers of its incorporation and registration date.
- Full Address of the Entity
- Details of the Authorized Representative
- Directors or Partner Details
- Details of Intellectual Property Right
- Details of funding
- Recognition received by the entity
Get the Startup Recognition Number
The issuance of the Startup’s Certificate of Recognition by DPIIT will be subject to a thorough examination of the presented application and accompanying documents.
After the ministry gives the green signal to the application and assigns a distinct recognition number, the startup becomes eligible for registration with tax advantages.
Benefits for DPIIT Recognized Startups
Once startups have obtained the DPIIT Certificate of Recognition for Startups, they can enjoy the advantages that come with it.
Once the DPIIT Certificate of Recognition for Startups has been acquired, the organization can independently confirm adherence to 3 Environmental Laws and 6 Labour Laws.
Start-Up Patent Application
Startups recognized by the DPIIT need only pay 80% of the fees for patents, trademarks, copyrights, and design. They also have the option to expedite their patent application.
Easier Public Procurement Norms
- Startups that have received recognition from DPIIT will have a chance to have their products listed on the Government e-Marketplace.
- DPIIT-acknowledged startups are not required to provide an Earnest Money Deposit.
- Start-ups are not required to have prior experience or demonstrate a certain level of turnover when applying for positions in Central Government ministries and departments.
Easy winding up of Company
As per the regulations stated in the Insolvency and Bankruptcy Code of 2016, a company can be liquidated within a period of 90 days subsequent to filing for insolvency.
Funds of Funds
Startups could potentially receive a funds of funds of Rs.10,000 crore from the Alternative Investment Funds.
Credit Guarantee fund
Over a period of four years, new business ventures are eligible to access a credit guarantee fund of Rs.2000 crore through either SIDBI or the National Credit Guarantee Trust Company.
- Once the Certificate of Recognition has been acquired, the startup is eligible to request for Tax relief through section 80 IAC of the Income Tax Act.
- Startups recognized by DPIIT have the opportunity to request exemption from Angel Tax.
- After obtaining the clearance for Tax exemption, the DPIIT recognized startups are exempted from income tax for 3 consecutive fiscal years out of its first ten years since formation.