What is 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 govt 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
If you are recognised as a startup it does not mean that you get the tax exemption or angle tax exemption automatically. You have to apply it separately.
Tax exemption for startups under Startup India Scheme
To get the tax exemption the following steps are to 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 to get this approval. Also it is given only to startups who are very innovative and those who have patent. Only few startups in India have been able to get the tax exemption, and its difficult to
Eligibility and criteria to register under Startup India scheme
An entity (Private Limited Company or Registered Partnership Firm or Limited Liability Partnership) shall be considered a “Startup” –
a) Upto 5 years from the date of its incorporation/ registration, and
b) If its turnover for any of the financial years has not exceeded INR 25 crore, and
c) It is working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
The entity should not have been formed by splitting up or reconstruction of a business already in existence.
A proprietorship or a public limited company is not eligible as startup. A one person company, being a private limited company is entitled to be recognized as a ‘startup’.For additional information, refer notification G.S.R. 180(E) dated February 17, 2016.
How many years is the startup registration valid for ?
An entity would cease to be a ‘startup’ upon expiry of:
a) 5 years from the date of its incorporation/ registration, OR
b) If its turnover for any of the financial years has exceeded INR 25 crore; OR
Startups would be required to intimate DIPP of any such cases within a period 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 certificate of recognition as a “Startup” in case an entity already exists?
The process of registration in such cases shall be real time and the certificate of recognition would be issued immediately upon successful submission of the application.
Do you help with Startup India registration?
Yes, we assist with application. The grant of registration depends on the government approval. The registration is not guaranteed.
What are your fees to assist in Startup India registration?
Our professional fees is Rs 5000 for application irrespective whether its approved or not.
What is government fees for the startup India registration?
There is no fees for the same.
Can a foreign subsidiary be registered under Startup India Scheme?
No, a foreign subsidiary cannot registered under startup India scheme. But a company with foreign shareholders and directors can be registered under startup India scheme.