Startup India Registration

Startup India is a government-led initiative launched in 2016 to build a robust ecosystem for nurturing innovation and startups. The goal is to drive sustainable economic growth and generate large-scale employment opportunities.

A Startup under the Startup India initiative must:

• Be incorporated as a private limited company, partnership firm, or LLP.
• Have been in operation for less than 10 years.
• Have a turnover of less than ₹100 crore in any of the financial years since incorporation.
• Be working towards innovation, development, or improvement of products/services, or have a scalable business model with a high potential for employment generation or wealth creation.

Key benefits include:

• Tax exemptions for the first three consecutive years.
• Faster patent registration and a rebate of up to 80% on patent fees.
• Self-certification under labor and environmental laws.
• Startup India Hub to provide advisory support and networking opportunities.
• Fund of Funds managed by SIDBI to provide funding support to Startups.
• Government tenders with relaxed norms.
• Incubation centers and startup accelerators.

To be recognized as a Startup under this initiative, one needs to:

• Incorporate the business as a private limited company, LLP, or partnership firm.
• Register on the Startup India portal.
• Submit details of the startup’s business model, innovation, and impact.
• Get the startup verified by the Department for Promotion of Industry and Internal Trade (DPIIT).

The Fund of Funds is a ₹10,000 crore corpus set up by the Indian government to provide funding to startups. The fund does not directly invest in startups but participates in the capital of SEBI-registered Venture Funds, which in turn provide funding to startups.

Startups recognized by DPIIT are eligible for:

• Income tax exemption for three consecutive financial years out of their first ten years.
• Exemption on capital gains tax if the amount is invested in a Fund of Funds or another startup.
• Exemption from angel tax under Section 56 of the Income Tax Act.

Launched in 2021, SISFS provides financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialization. The fund is disbursed through eligible incubators.

The initiative provides:

• Fast-tracked patent application processes.
• An 80% rebate on patent filing fees.
• 50% rebate on trademark filing fees.

Yes, under Startup India, there are special initiatives such as:

• Women Entrepreneurship Platforms to support women-led startups.
• Dedicated funds and mentorship for women entrepreneurs.
• Access to various schemes and programs aimed at promoting gender diversity in startups.

Startup India does not restrict startups to any particular sector. However, sectors like technology, agriculture, healthcare, education, manufacturing, energy, and environment have seen significant startup activities.

Startups can receive funding through:

• Angel investors and venture capitalists.
• Crowdfunding platforms.
• Startup India Fund of Funds.
• Government grants and schemes like SISFS and Atal Innovation Mission.

Public procurement policies allow startups to participate in government tenders without prior experience or turnover requirements. State government support is also available, with each state offering its own incentives for startups.

The Startup India Hub facilitates networking by connecting startups with:

• Industry experts.
• Mentors.
• Investors.
• Incubators and accelerators.

Incubators provide infrastructure, mentorship, and networking opportunities to help startups grow. They offer support in areas like product development, marketing, and business scaling.

No, there is no registration fee for startups applying for recognition under Startup India.