Startup India Certificate

Every startup company with innovation and distinct business concepts is eligible for the Startup India Certificate which is allotted by DPIIT. You need to know that the Startup India scheme is an initiative by the government of India that aims to improve the development as well as innovation of products and services & the formation of employment openings across the globe.

One of the major goals of this scheme is also to simplify the process of registration for startups in India by decreasing the regulatory burdens and permit them to concentrate on their fundamental business activities. The compliance costs are kept low along with offering several advantages.   

Eligibility for Startup India Certificate:

In order to meet the eligibility criteria for this certificate, the startup should be a:

• Private limited company or
• Registered partnership firm or
• Limited liability partnership   

The company needs to be newly established and should also not be incorporated by splitting up or rebuilding existing business. In any of the preceding financial years, the revenue of the company should be less than Rs. 100 crores.   

A company will be considered as a startup up to 10 years right from the date of its formation. The business concept should be the sole that drives towards the innovation or bringing enhancement in the prevailing services, products as well as processes.

It is also important to ensure that a startup company has the potential to produce employment and generate good wealth.

Startup India Certificate Benefits:

There are several benefits of this certificate that you need to know:  

Tax Exemption:
Once the company receives startup recognition, it can easily apply for the income tax exemption benefits like u/s 80IAC and U/s 56 relief for angel tax relief for next 3 Years. Also TAX EXEMPTIONS on capital gains & on investments above Fair Market Value.

Financial Benefits:
Now the startups are given a reimbursement on intellectual property rights (IPR) costs of 80% on patents as well as 50% on trademarks. They are also helped by government-provided organizers who support shielding and commercializing the IPRs.     

Funding Support

a. Crowd Funding
b. Angel Funding
c. Venture Capital
d. Govt. Funds
e. Business Incubators & Accelerators Funding

Tender Participation:

In numerous tenders, the government, as well as PSU, gives relaxation to the startups for participation in public procurement jobs via tenders.  Fast track under the criteria of “prior experience / turnover” – Relaxed for tenders by Central Ministries/CPSUs; included in GFR 2017. EXEMPTIONS from requirement of EARNEST MONEY DEPOSIT (EMD) in Government tenders.

Registration Benefits:

Documents Required for Startup India Certificate: 

Some of the important documents required for this certificate include:

• Certificate of company’s establishment
•  Email ID and mobile number
•  Company details
•  Directors or partners details
•  Details of an authorized representative
•  Brief information about business and products/services
•  Revenue model & uniqueness of the product