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By Yashika Sharma. 30 September 2020
What is the startup India Registration and what are the benefits you get when you register for Startup India

The following are the benefits when you get recognized as a startup:

1) Discount in government fees for Patent and trademark registration
2) Can participate in government tenders
3)  Only recognized startups can issue convertible notes
4) Can apply for angle tax exemption u/s 56
5) Can apply for tax exemption under section 80 IAC

Tax exemption for startups under Startup India Scheme
In order to gain a tax exemption, the following steps must be completed:
1) Apply for startup recognition on www.startupindia.gov.in
2) After you get the DIPP certificate for startup recognition apply for exemption under section 80 IAC on www.startupindia.gov.in.

It takes 6 months to 1 year for this approval to be issued. It is also granted only to start-ups that are very creative and to those who have patents. Just a few startups in India have been able to secure a tax exemption, which is difficult to achieve.

Eligibility and criteria to register under Startup India scheme An individual (Private Limited Company or Registered Partnership Firm or Limited Liability Partnership) is considered to be a "Startup"

(a) up to 5 years from the date of its incorporation/registration, and

(b) If the turnover of INR for any of the financial years did not exceed 25 lakh, and

(c) Work towards the invention, development, implementation, or commercialization of new products, processes, or services powered by technology or intellectual property.

The organization should not have been created by breaking up or restoring a corporation already in existence.

A corporation or a public limited company is not liable for a start-up. A corporation of one person, being a private limited company, is entitled to be known as a start-up company. For further information, please refer to notification G.S.R. 180(E) dated 17 February 2016.

How many years is the startup registration valid for?
An organization will cease to be a 'start-up' after the expiry of:

(a) 5 years from the date of its incorporation/registration, OR

(b) if the turnover for any of the financial years has exceeded INR 25 crore;

Startups will be expected to intimate the DIPP in every such case within a span of 21 days.

Can an existing entity register itself as a “Startup” on the Startup India Portal and Mobile App?

Yes, an existing entity that meets the criteria as indicated in response to Question 1 can visit the Startup India Portal and Mobile App and get itself recognized for various benefits. The tax benefits proposed under the Finance Bill 2016 will be available from 01-04-2016.

What is the timeframe for obtaining a certificate of recognition as a “Startup” in case an entity already exists?
The registration process in such cases shall be in real-time and the certificate of recognition shall be issued immediately upon successful submission of the application.

Do you help with Startup India registration?

Yes, we're helping with the application. The granting of registration depends on the approval of the Government. Registration shall not be assured.

What are your fees to assist in Startup India registration?

Our professional fees shall be Rs 5000 for submission, whether accepted or not.

What are government fees for the startup India registration?

There are no fees for the same

Can a foreign subsidiary be registered under Startup India Scheme?

No, a foreign subsidiary can not be licensed under India's start-up scheme. However, a company with international shareholders and directors can be recorded under India's start-up scheme.