What is Start Up India Initiative?

Start Up India is an initiative of the Government of India, intended towards building a strong eco-system to foster innovation and Start Ups in India. This initiative aims to drive sustainable economic growth and generate large scale employment opportunities in the country. The Start Up India portal is a single point of contact for the entire Start Up ecosystem and enables knowledge exchange. Today we have a lot of Start Ups and Entrepreneurs, but many Start-ups do not reach their full potential due to limited guidance and access. The Start Up India initiative will play a vital role in solving these problems.

Who is Eligible for Start Up India Recognition?

Following four points shall be kept in mind while determining which entity is eligible for Start Up India Recognition:

1. Entity should be a registered Partnership/Private Company/LLP. The entity shall not be formed by splitting up or reconstruction of a business already in existence.

2. Ten years has not lapsed since its registration or incorporation.

3. Turnover should not exceed INR 100 Crores in any of the previous financial years.

4. The Start Up should work towards development or improvement of a product, process or service and/or have scalable business model with high potential for creation of wealth & employment.

Accessible Services after Start Up India Recognition

After registering on the Start Up India portal, you can access various services like:

• Knowledge bank for Start Ups with an overview of key terms, processes, stakeholders, legal requirements and more.

• Various partnered services like banking, legal help and clouding services.

• Download verified templates for every function, from Legal to HR to Finance to Customer Support.

• Online Courses for keeping your skill updated.

• Participate in corporate & government innovation challenges to get noticed, win cash grants, incubation, mentorship support and more.

Benefits of Recognition under Start Up India by Department For Promotion Of Industry And Internal Trade (DPIIT)

Some of the benefits enjoyed by Start Up India registered entities among many are as follow:

1. In order to promote Start Ups, the Government shall exempt Start Ups in the manufacturing sector from the criteria of “prior experience/ turnover”. DPIIT recognized Start-ups have been exempted from submitting Earnest Money Deposit (EMD) or bid security while filling government tenders.

2. Only Private Limited Companies or Limited Liability Partnerships incorporated after 1st April, 2016 and recognized as Start Ups can be exempted from paying income tax for 3 consecutive financial years out of their first ten years since incorporation.

3. Only Private Limited recognized as Start Ups with DPIIT can be exempted under Section 56(2) (VIIB) of the Income Tax Act.

4. Patent applications filed by Start Ups shall be fast-tracked for examination so that their value can be realized sooner. Start Ups shall be provided an 80% rebate in filing of Patents and 50% rebate in filing of Trademarks.

5. Start Ups with simple debt structures, or those meeting certain income specified criteria can be wound up within 90 days of filing an application for insolvency.

6. Start Ups shall be allowed to self-certify compliance for 6 Labour Laws and 3 Environmental Laws through a simple online procedure.