Registration of Startup
Start-up India is a project introduced by the Government of India on 2016-17 for boosting entrepreneurship and provide a ground for budding innovative business. It is a flagship initiative of the Government of India, for building a strong environment for developing start-ups in the Country. Under this p[project Government aims to provide incubation, funding support, incentives, simplification of procedures etc. Government also expects that these Startups provide jobs opportunities to the people, once its developed which helps in the economic development of the society. However for getting the benefits, the entity should be a start-up
What is a Start-up
A start-up is a new business entity intended to solve a problem. It may be a Private Limited Company or Limited Liability Partnership or One Person Company, owned and operated by few individuals. These are the companies which are usually maintained and managed by the founders or a single person. As per the policy an entity should fulfil the following conditions to become a Startup
- It should be registered as a Company , or Limited Liability Partnership
- The Startup should be working towards innovation/ improvement of existing products, services and processes and should have the potential to generate employment/ create wealth. It should be a solution for an existing problem.
- Within 10 years from the date of registration
- Turnover should be less than INR 100 Crores in any of the previous financial years.
How it operates
After Applications, Start-up India will scrutinize the same and Recognize up to 7 years starting from the date of incorporation. Secondly, a start-up must not exceed the threshold of 25 crores.
Benefits of available for a Recognized Startup
Exemption from Income Tax
The most attractive exemption is the startup can avail exemption from payment of Income Tax Tax for 3 consecutive years out of the first 10 years from the date of incorporation of the entity. To avail this benefit after getting the recognition the Startup has to apply separately
Exemption from Angel Tax
Some start-ups may be Bootstrapped, but some may be starving for funds. Angel Investements, loans, promoters contribution, contribution from relatives and friends, government grants etc, are the funding options for startups To increase the funding for startups, the government has exempted registered startups from the tax levied on angel investment. The tax exemption is granted up to the total amount of paid-up share capital and share premium does not exceed Rs. 25 Crore after the proposed issue of share.
Reduced Patent and Trademark Registration fees
A startup can enjoy reduced government fees available for proprietorship or MSME, for Trademark Application and Patent Applications. The Startup can claim upto 50% rebate in Trademark application fees and an 80% rebate for Patent applications. As well as the patent application will be processed on a fast track basis.
If the entity is a Startup then it can apply for specified government tenders even if it does not fulfil such requirements.
Fund of Funds
The government has set up an establishment called fund of funds which will help startups in availing funds.
Availbility of Mentors
The Startup India arranges mentors for stratups for advising
Biswas Filing Service is a pre and post business registration compliance management service provider. We are a group of Chartered Accountants, Company Secretaries and Advocates based in Thiruvananthapuram. Our aim is to register start-ups, micro, small and medium business at an affordable cost, by limiting our charges, in order to provide a support for the budding businesses. We are delivering a wide range of services to the business enterprises in Kerala, including Company Registration, Limited Liability Partnership Registration, Partnership Firm Registration, OPC Registration, GST Registration and Filing, Accounting and Book Keeping Services and Filing firm. We have been helping out business entrepreneurs and enthusiasts to set up and launch a lucrative business in Kerala. Through our in-depth knowledge of the industry and multiple years of expertise in the given field, we have helped hundreds of clients from different corners. We have tailor made solutions for all your business problems at an affordable cost, with an expert customer care.