Startup India Certificate
Description
About This Service
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:
Startup registration in India is still an intricate process as the establishment and registration are considered more difficult than the actual operation of a business as there are several requirements.
Under this scheme, the Startup India Hub, a portal that helps in creating networking openings and gives assistance to the startups.
As a result, it has turned out to be a problem-solving window offered by the government of India under the start-up India certificate.
# Government Funding Opportunity:
Through the alternate investment funds, the government has allotted Rs. 10,000 crores funds for investment in the startup companies. SIDBI is involved in managing this fund and all the startups can apply under this quota.
# Cloud Services:
a. $ 1000 worth Cloud Credits @ Amazon Web Services
b. $ 1000 worth Cloud Credits @ DigitalOcean
c. $ 300 worth Cloud Telephony Services @ MyOperator
d. $ 100 worth Cloud Telephony Services @ Exotel
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