Document

Startup Registration India – 7 Steps to Register your Startup

By Mayashree Acharya

|

Updated on: Oct 17th, 2023

|

17 min read

Startups are booming in India. The government is also supporting young entrepreneurs to establish startups. Startups help to boost the country's economy. A startup is a business that offers innovative products or services that provide solutions to a problem existing in society. A startup may also redevelop a current product or service into something better.
 

 

Startup India

The Government of India, under the leadership of PM Narendra Modi, has started and promoted the Startup India initiative to develop the Indian economy, recognise and promote startups and attract talented entrepreneurs.     

Steps to Register Your Startup With Startup India

Step 1: Incorporate your Business

You must first incorporate your business as a Private Limited Company, Partnership firm or a Limited Liability Partnership. You have to follow all the normal procedures for registration of any business like submitting the registration application and obtaining the Certificate of Incorporation/Partnership registration.

You can incorporate a Private Limited Company or a Limited Liability Partnership (LLP) by filing the registration application to the Registrar of Companies (ROC) of your region. You can establish a Partnership Firm by filing the application for registration of your firm with the Registrar of Firms of your area. You need to submit the required documents and fees to the Registrar of Companies or Registrar of Firms along with the registration application.

Step 2: Register with Startup India

Then the business must be registered as a startup. The entire process is simple and online. Visit the Startup India website and click on the ‘Register’ button as shown below.

Enter your name, email ID, mobile number, password and click on the ‘Register’ button.

Next, enter the OTP which is sent to your email and other details like, the type of user, name and stage of the startup, etc., and click on the ‘Submit’ button. After entering these details, the Startup India profile is created.

Once your profile is created on the website, startups can apply for various acceleration and incubator/mentorship programmes on the website, along with getting access to learning resources, funding options, government schemes and market access.

Step 3: Get DPIIT Recognition

The next step after creating the profile on the Startup India Website is to avail the Department for Promotion of Industry and Internal Trade (DPIIT) Recognition. This recognition helps the startups to avail benefits like access to high-quality intellectual property services and resources, relaxation in public procurement norms, self-certification under labour and environment laws, easy winding of company, access to Fund of Funds, tax exemption for 3 consecutive years and tax exemption on investment above fair market value.

For getting DPIIT Recognition, log in with your registered profile (account) credentials on the Startup India website and click on the ‘Apply for DPIIT Recognition' option under the ‘Recognition’ tab.

On the next page, click on ‘Apply Now'. It will redirect to the National Single Window System (NSWS) website. Companies and LLPs should register on the NSWS website, add form ‘Registration as a Startup’ and fill ‘Startup Recognition Form’ to get DPIIT recognition. 

Step 4: Recognition Application

On the ‘Startup Recognition Form’, you need to fill the details such as the entity details, full address (office), authorised representative details, directors/partner details, information required, startup activities and self-certification. Click on the plus sign on the right-hand side of the form and enter each section of the form.
 

After entering all the sections of the ‘Startup Recognition Form’, accept the terms and conditions and click on the ‘Submit’ button.

 

Step 5: Documents for Registration

  • Incorporation/Registration Certificate of your startup
  • Proof of funding, if any
  • Authorisation letter of the authorised representative of the company, LLP or partnership firm
  • Proof of concept like pitch deck/website link/video (in case of a validation/ early traction/scaling stage startup)
  • Patent and trademark details, if any
  • List of awards or certificates of recognition, if any
  • PAN Number

Step 6: Recognition Number

That’s it! On applying you will get a recognition number for your startup. The certificate of recognition will be issued after the examination of all your documents which is usually done within 2 days after submitting the details online.

Step 7: Other Areas

Patents, trademarks and/or design registration: If you need a patent for your innovation or a trademark for your business, you can easily approach any from the list of facilitators issued by the government. You will need to bear only the statutory fees thus getting an 80% reduction in fees.

Funding: One of the key challenges faced by many startups has been accessing finance. Due to lack of experience, security or existing cash flows, entrepreneurs fail to attract investors. Besides, the high-risk nature of startups, as a significant percentage fail to take off, puts off many investors.

In order to provide funding support, the Government has set up a Startup India Seed Fund Scheme (SISFS) on 21.01.2021 with an outlay of Rs.945 crore to provide financial assistance to startups in the next 4 years.

Self Certification Under Employment and Labour Laws: Startups can self certify under labour laws and environment laws so that their compliance costs are reduced. Self-certification is provided to reduce regulatory burden thereby allowing them to focus on their core business. Startups are allowed to self-certify their compliances under 6 labour laws and 3 environment laws for a period of 3 to 5 years from the date of incorporation.

Units operating under 36 white category industries as published on the website of the Central Pollution Control Board do not require clearance under 3 environment-related Acts for 3 years.

Tax Exemption: Startups are exempted from income tax for 3 years. But to avail these benefits, they must be certified by the Inter-Ministerial Board (IMB). The Startups incorporated on or after 1st April 2016 can apply for the income tax exemption.

Need Government recognition for your Startup?

Startup India helps you to enjoy benefits from the government

Key Features of the Fund of Funds

  • The Fund of Funds shall be managed by the Small Industries Development Bank of India (SIDBI)
  • Life Insurance Corporation (LIC) shall be a co-investor in the Fund of Funds
  • The Fund of Funds shall contribute to a maximum of 50% of the SEBI registered Venture Funds (“daughter funds”). In order to be able to receive the contribution, the daughter fund should have already raised the balance 50%. The Fund of Funds shall have representatives on the board of the venture fund based on the contribution made.
  • The Fund shall ensure support to a broad mix of sectors such as manufacturing, agriculture, health, education, etc.

It’s very easy to register as a startup thanks to the various government initiatives.  However, you can focus on your key area while we at ClearTax help you from start to finish right from incorporating your company to getting your startup recognition.  Do visit our website to know more about startup services.

Frequently Asked Questions on Startup Registration India

Who can register with startup India?

An entity incorporated as a Private Limited Company, Partnership Firm or a Limited Liability Partnership can register themselves under the startup India scheme. The annual turnover of these business entities should not exceed Rs.100 crores, and they should have been in existence for up to ten years from the date of its incorporation/ registration. Such an entity should be working towards innovation, development or improvement of products or services or processes.

What are the benefits of signing up with startup India?

There are a number of benefits startups receive under the Startup India Initiative. Nevertheless, in order to avail of these benefits, an entity is needed to be recognised by the DPIIT as a startup.

Startups are allowed to self certify their compliance with six labour laws and three environment laws. This is allowed for a total period of five years from the date of incorporation/registration of the entity. Startups are allowed a three-year tax exemption and the best intellectual property services and resources solely built to help startups protect and commercialise their IPRs.

What kind of business structure should I choose for my startup?

The most preferred business structures for a startup are Private Limited companies and LLPs. A Private Limited company is legally recognized and generally favoured by investors. However, it has stricter compliance and may have a higher cost of incorporation.

Whereas incorporation cost is lower for LLPs and they tend to have relaxed compliance in comparison to the Private Limited Companies. In addition to that, LLPs have limited liabilities and are equally recognised by investors and all over the world.

What can I do to attract investors to a start-up?

To attract investors, not only do you need a stellar product with a scalable model, but you also need visibility. Make sure that your product receives healthy engagement and traction. You’ll need to register your startup on startup India and proactively seek out investors. Make sure you are able to effectively communicate your business idea to the investor and the sustainability of your business model.

Can a foreign company register under the Startup India hub?

Any entity that has at least one registered office in India can register itself on the hub, since the location preferences, for the time being, are only created for Indian states. However, soon the government hopes to start registrations for stakeholders from the global ecosystem too.

What is the difference between an accelerator and an incubator?

Startup incubators are typically institutions that help entrepreneurs by developing their business, especially in the initial stages. The incubation function is usually carried out by institutions that have experience in the business and the tech world.

Startup accelerators support early-stage, growth-driven companies. These programmes usually have a timeframe in which individual companies spend anywhere between a few weeks and a few months working with a group of mentors who are educated and may also provide financial help.

For how long is a company recognised as a startup?

Any business entity that has completed 10 years from the date of its incorporation/registration, and has exceeded the previous years turnover of Rs.100 crores shall stop being a startup on completion of 10 years from the date of its registration/incorporation.

Can an existing entity register itself as a “Startup” on the Startup India Portal?

Yes, as per the law an existing entity can register itself as a startup, provided that it meets the prescribed criteria for a startup. They will also be able to avail various tax and IPR benefits that are available to startups. The criteria are the same as those mentioned in the article above.

How do I know my registration is complete?

Once the application is complete, and the startup gets recognised, you will receive a system-generated certificate of recognition. You will be able to download this certificate from the Startup India portal.

Does a startup need to be registered in India?

Yes. To get register a startup with the Startup India website and get startup benefits, it needs to have at least one registered office in India, since the location preferences, for the time being, are only created for Indian states. However, soon the government hopes to start registrations for stakeholders from the global ecosystem too.

What should I do when my password is showing as invalid at the time of registering my company on the startup India portal?

Please note that the password you enter for registering on the startup portal must contain 8 to 15 characters, out of which it must contain at least one lowercase letter, one uppercase letter, one numeric digit, and one special character. The portal will accept only a password that contains all these requirements.

How to write the startup activities section on the startup recognition form to ensure it is accepted?

A startup is registered with an objective to solve a problem. For a startup to be registered with the Startup India initiative, it must be working towards innovating something new or improving the existing technology to solve a problem. Thus, in the ‘Startup Activities’ section on the ‘Startup Recognition Form’, you must write the details on what problem is your the startup solving, what does your startup propose to solve the problem, i.e. the solution, the uniqueness of your solution, i.e. innovative nature of your product or service and what is the revenue-generating model of your startup.

Disclaimer: The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice and should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state.

Related Articles:

Startup India: Eligibility, Tax Exemptions and Incentives

Startup Funding Options in India

11 Benefits to Startups by Indian Government

inline CTA
Get an expert at affordable price
For ITR, GST returns, Company Registration, Trademark Registration, GST Registration
About the Author

I am an advocate by profession and have a keen interest in writing. I write articles in various categories, from legal, business, personal finance, and investments to government schemes. I put words in a simplified manner and write easy-to-understand articles. Read more

Public Discussion

Get involved!

Share your thoughts!

summary-logo

Quick Summary

India's booming startup culture is supported by the government through initiatives like Startup India. To register as a startup, businesses must incorporate and then register with Startup India online. DPIIT recognition offers benefits such as tax exemptions and access to funds. Startups can self-certify under labor and environment laws. Government schemes provide assistance for patents, trademarks, funding, and tax exemptions. Startup recognition is crucial for accessing government benefits.

Was this summary helpful?
liked-feedbackliked-feedback

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company PolicyTerms of use

ISO

ISO 27001

Data Center

SSL

SSL Certified Site

128-bit encryption