Startup - Redid

Benefits & Government Incentives for Registration under
Startup India Initiative- Form a Company in India
Startup India Scheme for Incorporating Company in India

The Government of India launched the Startup India program as a way to encourage
and promote the nation's startup community. The program was introduced in
January 2016 with an emphasis on encouraging entrepreneurship, innovation, and
job development by incorporating companies in India
What is called a startup?

 Annual turnover: Should not have exceeded Rs.100 crore in any of the
fiscal years after incorporation.
 Original entity: The promoters should have founded the company or entity
from the start, rather than dividing up or reconstructing an existing
corporation.
 Registration: Registration of a startup can be done only from the following
types of companies as Private limited company, Partnership firm, and Limited
liability partnership.
 Age of the Company: The date of incorporation should not be more than
ten years old.
Benefits and initiatives for registering under the Startup India

scheme
1. Tax Exemptions
Startups registered under the Startup India initiative are eligible for a variety
of tax incentives, including income tax exemption for three years in a row.
This exemption is given to eligible startups that have been approved by the
Department of Promotion of Industry and Internal Trade (DPIIT).
Tax exemption under 8o IAC: Eligibility to avail tax exemption under 80IAC
The entity should be recognized by the DPIIT
Section 80IAC only exempts Private Limited Companies and Limited Liability
Partnerships from paying taxes.
The startup must have been formed on or after April 1, 2016, at the latest.
2. Self-Certification Compliance
Startups can self-certify compliance with some labor and environmental
standards through a simple online process, lowering regulatory burden and
encouraging ease of doing business.
There will be no inspections for labor regulations for a period of five years.
Startups will only be inspected if the inspecting officer receives a credible and
verified report of a violation in writing.
For environmental rules, startups in the 'white category' [as defined by the
Central Pollution Control Board (CPCB)] would be permitted to self-certify
compliance, with only random checks conducted in such circumstances.
Environment laws
The Water (Prevention & Control of Pollution) Cess (Amendment) Act
The Air (Prevention & Control of Pollution) Act
The Water (Prevention & Control of Pollution) Act
3. Easy Company Closure

The Startup India initiative has included provisions for a fast-track exit,
allowing startups to close their activities within 90 days of filing a closure
application.
4. Intellectual Property Rights (IPR) Assistance

Startups can benefit from expedited inspection and decreased filing fees for
patents, trademarks, and designs. The government also assists entrepreneurs
in filing and protecting their intellectual property.
Startup Patent Applications Will Be Fast-Tracked - The applications will be

expedited so that the value can be realized sooner.
A panel of facilitators to assist with IP application submission - The facilitators

will assist with application filing.
Government to shoulder facilitation costs - Under this proposal, the Central

Government will pay the entire facilitation charge for any number of patents,
trademarks, or designs that a Startup may submit, and the Startups will pay
just the statutory amounts payable.
5. financial Assistance
The project assists companies in gaining access to various financial choices,

such as the Fund of Funds for Companies (FFS). The government has
established a corpus of INR 10,000 crores to support qualifying companies
through designated venture capital funds.
6. Simplified Regulatory Environment

Startups benefit from a simpler regulatory environment with fewer compliance
requirements for labor and environmental legislation. They would be able to
concentrate more on their core business activities and innovation.
7. Incubation and co-working spaces

The project encourages the creation of incubation centers and co-working
spaces, which provide infrastructure, mentorship, networking opportunities,
and other support services to companies.
8. Networking and Collaboration

Startups have access to government-organized networking events, seminars,
workshops, and industry-specific programs. Collaboration with other
entrepreneurs, mentors, investors, and industry experts is made easier as a
result.
9. Access to government procurement

Startups registered under the Startup India initiative are given an advantage
in government procurement processes. They are eligible to participate in bids
despite having no prior experience or meeting any turnover requirements.
Section 56(2)(VIIB) of the Income Tax Act exemption

 According to Section 56(2) VIIB of the Income Tax Act, investments made
by listed firms with a net worth of more than INR 100 crore or a turnover
of more than INR 250 crore into qualifying startups are exempt.
 According to Section 56(2)(VIIB) of the Income Tax Act, investments
made into qualified Startups by accredited investors, non-residents, AIFs
(Category I), and listed businesses having a net worth greater than $100
billion or revenue greater than INR 250 billion are exempt.
 Up to a combined limit of INR 25 crore, consideration for shares acquired
by qualified startups shall be exempt.
The registration process for the Startup India scheme:

 Register on the Startup India website.
 Apply for DPIIT recognition after registering.
 Application for Section 80 IAC Exemption
 Fill out all of the details and upload the papers listed below before
submitting the application form.
Conclusion:
The Government of India's Startup India initiative has aided emerging
businesses in developing their concepts and inventions. The Startup India
program seeks to facilitate this process and strengthen the economy by
generating job opportunities. This is a tremendous opportunity for business
owners and government support. To fulfill your entrepreneurial aspirations,
register right away.
There are many tax benefits under the Startup India scheme such as Tax
Exception. The government is granting patent protection under this scheme to
increase Innovation in startups. However, to obtain these benefits, a company
must be recognized as a startup by the DPIIT (Department of Industrial Policy
and Promotion). There are relaxations of public procurement for labor laws
and Environment laws in India. Funds are provided by the government for the
startups.
Startups are essential to the economy and they create employment and
increase opportunities. They are young and bold companies that have unique
ideas and innovations and inventions for product development. The startups
play a pivot role in Economy.

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Benefits & Government Incentives for Registration under

Startup India Initiative- Form a Company in India

Startup India Scheme for Incorporating Company in India

What is called a startup?

Benefits and initiatives for registering under the Startup India

3. Easy Company Closure

4. Intellectual Property Rights (IPR) Assistance

Startup Patent Applications Will Be Fast-Tracked - The applications will be

A panel of facilitators to assist with IP application submission - The facilitators

Government to shoulder facilitation costs - Under this proposal, the Central

The project assists companies in gaining access to various financial choices,

6. Simplified Regulatory Environment

7. Incubation and co-working spaces

8. Networking and Collaboration

9. Access to government procurement

Section 56(2)(VIIB) of the Income Tax Act exemption

The registration process for the Startup India scheme:

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