India is fastest growing economy and with the increase of internet usage and smartphone, Country is turning into digitalization. Startup India is a flagship initiative of the Ministry of Commerce and Industry to build a strong ecosystem in the country to increase the domestic production, global ranking, opportunity to startup businesses to participate in various Govt. Schemes with relaxations, a great opportunity for young dreamers to start own startup and helps to build next India. Ultimately to drive towards a sustainable economic growth and large scale employment generation.
A startup business deprived of many facilities due to not having prior work experience and track records, limited investment and resources or less opportunity to proof ability and zero infrastructure. Which hurdles them to grow.
Even it becomes very tough for a startup business to participate in Govt. tenders and financial help from banks.
BUT, Post introduction of Startup India Scheme by Govt. of India, a relief is witnessed for newly started small entity.
Know Some important fact about Recognition Certificate
If you are running a formal business like a Private Limited Company or Limited Liability Partnership Firm (LLP) or a Registered Partnership Firm in India and which is not more than 10 years old, It is recommended to get your entity recognized with Startup India.
When your entity get Startup Recognition from Department of Promotion and Industry and Internal Trade [Previously known as Department of Planning and Promotion (DIPP)], which valid
- upto 10 years from the date of incorporation of the Entity , or
- till Business turnover not exceeding Rs 100 crores in any Financial Year, whichever is earlier
Getting recognition, takes 4 to 10 working days. Most important part here is, your application to be drafted correctly with Good write-up on some important questions like
- Brief note supporting the options chosen above for innovation, improvement and scalability
- Please mention any awards/recognition received by the entity. Attach Award Documents. (Optional)
- What is the problem the startup is solving?
- How does your startup propose to solve this problem?
- What is the uniqueness of your solution?
- How does your startup generate revenue?
Here you need a skill to draft. To minimize the risk of rejection, you can hire Consultant.
How Startup India Recognition helps you in business?
A. Tax Exemption benefit
Eligible to apply for Income Tax Exemption u/s 80IAC for three consecutive financial year.
Further, you can apply for relief from Angel Tax (Tax on Share Premium) U/s 56.
B. Tender Participation
In many Tenders, Govt. and PSU gives relaxation for Startups to Participation in public procurement job through tenders. Relaxation in Prior experience, EMD or Turnover criteria.
C. Govt. Funding Opportunity
Government allotted Rs 10,000 crores funds for investment into startups through Alternate Investment Funds. SIDBI is managing this fund. Startups can apply under this quota.
E. Participate in various Govt. Scheme
Government issues day to day various schemes for startup to participate. For example, sustainable finance scheme, bank credit facilitation, raw material assistance, etc.
F. Participate Startup Grand Challenges
Many reputed companies encourage startup entrepreneurs for their solutions. Here gives an opportunity for startup to participate in the scheme and win funding. Recently, Whatsapp, Mahindra, Aditya Birla, many more companies organizing such financial assistance scheme with Startup India.
G. Govt Fee Concession
In IPR Registration 50%-80% Govt. fee concession available. Example in Trademark, Patent application.
H. Easy Winding up
Windup company in 90 days under insolvency & Bankruptcy code 2016.
I. Self Certifications
Eligible for Self-certification and compliance under 9 environmental & labour laws.
J. Connect Networks
Search and find various startups and connect with them. Get Mentorship, Talk to investors and industry connect.
Only approx 16578 Entity Registered as Startups till date. Number is growing every day with the awareness of its benefits.182 Startups Get funded. (source: https://www.startupindia.gov.in )
For more knowledge connect with our Consultant at FinTax Corporate Professionals LLP | +91-7678243418 / +91-120-4203375