Who can Apply for Startup Recognition with Department for Promotion Industry and Internal Trade?
An entity shall be considered as a Startup for Registration with department if all below 5 criterias fulfilled.
Should formal business entity such as Private Limited Company or a Limited Liability Partnership (LLP) or a Registered Partnership Firm in India.
2. Up to TEN YEARS from the date of its incorporation/registration. That Means, Recognition Certificate valid upto 10 years from the date of incorporation/registration of entity with MCA/Registrar of Firm.
- IF your Entity is more than 10 years old, the not eligible to get recocnition as startup.
3. If its turnover for any of the financial years since incorporation/registration has not exceeded INR 100 Crores
4. If it is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.
An entity Should not be formed by splitting up or reconstruction of a business already in existence. Therefore, a fresh company need to be incorporated to get registration with Startup India.
When Startup India Registration Certificate Vality shall Expire
1. On Expiry of 10 years from the date of incorporation/ registration of the entity
2. Turnover in any financial year exceed INR 100 crores.
Whichever is earlier, Validity of the certificate shall expire automatucally and all benefits as attached will lapse immediately.
Registered Partnership Firm
A Partnership firm is called registered when it is registered with Registrar of Firm under state Govermnent. A Firm is regulated by Partnership Firm Act. To start a a registered partnership firm, the concerned parties ( minimum 2 Partners) have to draft a partnership deed where the terms and conditions of the partnership is specified on stamp paper. Thereafter, This partnership deed to be registered with the registrar of firms at your jurisdiction. For more information contact Consultant at FinTaxx Corporate Professionals LLP
Limited Liability Partnership Firm
A Limited liability partnership firm is registered under the LLP Act with Ministry of Corporate Affair (MCA). Both partnership firm and LLP are very similar, but LLP has more in common features like a private limited company. But LLP has some exemption from compliance
Private Limited Company
The private limited company is the most popular type of formal business in India. 2 or more person join together and can apply for a private company with Ministry of Corporate Affairs. A Private limited company has to comply various legal compliances under the companies act 2013, like, Appointment of Statutory auditor, Audit of books of account, filing annual report and forms with ROC, etc.