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Startup Registration in India – 7 Steps to Register Your Startup

Startup Registration in India – 7 Steps to Register Your Startup

Startups are rapidly growing in India, with strong support from the government for young entrepreneurs. These ventures play a crucial role in strengthening the country’s economy. A startup is a business that delivers innovative products or services aimed at solving existing problems in society. It may also enhance or redevelop an existing product or service to make it more effective.

Startup India
 The Government of India, under Prime Minister Narendra Modi, launched the Startup India initiative to boost economic growth, recognize and promote innovative startups, and attract talented entrepreneurs from across the country.

Steps to Register Your Startup with Startup India

Step 1: Incorporate Your Business

The first step is to legally incorporate your business as a Private Limited Company, Partnership Firm, or Limited Liability Partnership (LLP). You need to follow the standard registration procedures, including submitting the application and obtaining the Certificate of Incorporation or Partnership Registration Certificate.

  • To register a Private Limited Company or LLP, file the registration application with the Registrar of Companies (ROC) in your region.
  • To establish a Partnership Firm, submit the registration application to the Registrar of Firms in your area.

Along with the application, you must provide the required documents and pay the applicable registration fees to the respective Registrar.

Step 2: Register with Startup India

After incorporating your business, the next step is to register it as a startup on the Startup India portal. The process is fully online and straightforward.

  • Visit the Startup India website and click on the ‘Register’ button.
Startup Registration in India – 7 Steps to Register Your Startup
  • Enter your name, email ID, mobile number, and password, then click ‘Register’.
Startup Registration in India – 7 Steps to Register Your Startup
  • Enter the OTP sent to your email and fill in additional details such as user type, startup name, and stage of the startup, then click ‘Submit’.

Once your profile is successfully created, your startup gains access to various acceleration and incubator programs, mentorship opportunities, learning resources, funding options, government schemes, and market access through the portal.

Step 3: Get DPIIT Recognition

Startup Registration in India – 7 Steps to Register Your Startup

After creating your profile on the Startup India portal, the next step is to obtain DPIIT (Department for Promotion of Industry and Internal Trade) Recognition. This recognition enables startups to access several benefits, including:

  • High-quality intellectual property services and resources
  • Relaxation in public procurement norms
  • Self-certification under labor and environmental laws
  • Simplified company winding-up procedures
  • Access to the Fund of Funds for Startups
  • Income tax exemption for three consecutive years
  • Tax exemption on investments above the fair market value

To apply for DPIIT Recognition:

  1. Log in to your Startup India account.
  2. Click on ‘Apply for DPIIT Recognition’ under the ‘Recognition’ tab.
  3. On the next page, select ‘Apply Now’, which will redirect you to the National Single Window System (NSWS) portal.
  4. Companies and LLPs must register on the NSWS portal, select ‘Registration as a Startup’, and complete the Startup Recognition Form to obtain DPIIT recognition.
Startup Registration in India – 7 Steps to Register Your Startup

Step 4: Complete the Recognition Application

In the ‘Startup Recognition Form’, you must provide the following details:

  • Entity information and complete office address
  • Authorized representative details
  • Directors or partners information
  • Relevant information about startup activities
  • Self-certification details
Startup Registration in India – 7 Steps to Register Your Startup

Use the plus (+) icon on the right-hand side of the form to enter information for each section. Once all sections are completed, accept the terms and conditions and click ‘Submit’ to complete the recognition application.

Startup Registration in India – 7 Steps to Register Your Startup

Step 5: Documents Required for Registration

To complete your startup registration, you need to submit the following documents:

  • Incorporation or Registration Certificate of your startup
  • Proof of funding, if applicable
  • Authorization letter of the company, LLP, or partnership firm’s authorized representative
  • Proof of concept, such as a pitch deck, website link, or video (for startups in validation, early traction, or scaling stages)
  • Patent and trademark details, if available
  • List of awards or recognition certificates, if any
  • PAN Number of the entity

Step 6: Recognition Number

After submitting your application, you will receive a recognition number for your startup. The Certificate of Recognition is issued after verification of all submitted documents, usually within 2 days of completing the online submission.

Step 7: Additional Areas

Patents, Trademarks, and Design Registration:
 If you require a patent for your innovation or a trademark for your business, you can contact any facilitator listed by the government. You are only required to pay the statutory fees, which offers an 80% reduction in overall costs.

Funding:
 One of the major hurdles for many startups is gaining access to funding. Due to limited experience, lack of collateral, or insufficient cash flow, entrepreneurs often struggle to attract investors. Additionally, the high risk associated with startups—since many fail to succeed—discourages potential investors.

To support financing needs, the Government launched the Startup India Seed Fund Scheme (SISFS) on 21.01.2021, with a total allocation of Rs. 945 crore to provide financial aid to startups over a period of four years.

 

Startup India Registration Services

 

Self-Certification Under Employment and Labour Laws:
 Startups can self-certify under labour and environmental laws to lower compliance costs. This initiative is designed to reduce regulatory pressure, enabling startups to prioritize their core business activities. They are permitted to self-certify under 6 labour laws and 3 environmental laws for up to 3 to 5 years from the date of incorporation.

Units operating in any of the 36 white category industries listed on the Central Pollution Control Board website do not need clearance under 3 environment-related Acts for a period of 3 years.

Tax Exemption:
 Startups can receive income tax exemption for a period of 3 years. However, to access this benefit, they must be approved by the Inter-Ministerial Board (IMB). Startups incorporated on or after 1st April 2016 are eligible to apply for this tax exemption.

Key Features of the Fund of Funds

  • The Fund of Funds is managed by the Small Industries Development Bank of India (SIDBI).
  • Life Insurance Corporation (LIC) acts as a co-investor in the Fund of Funds.
  • The Fund of Funds can invest up to 50% in SEBI-registered Venture Funds (referred to as “daughter funds”). To receive this contribution, the daughter fund must have already secured the remaining 50%. Based on its investment, the Fund of Funds will have representatives on the venture fund’s board.
  • The Fund aims to support a diverse range of sectors, including manufacturing, agriculture, health, education, and more.
  • Registering as a startup has become very simple due to various government initiatives.

Disclaimer: The content on this website is for informational purposes only and does not constitute legal, financial, or professional advice. Please consult qualified experts before acting on any information. K M GATECHA & CO LLP accepts no liability for errors, omissions, or outcomes from the use of this content. This site is not an advertisement or solicitation.

 

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Frequently Asked Questions (FAQs)

 Startups recognized by the DPIIT can access multiple benefits under the Startup India Initiative. These include self-certification for six labour laws and three environmental laws for up to five years from incorporation, a three-year income tax exemption, and access to high-quality intellectual property services to help safeguard and commercialise their innovations.

 Any entity registered as a Private Limited Company, Partnership Firm, or Limited Liability Partnership (LLP) can apply under the Startup India scheme. The business must have an annual turnover of less than Rs. 100 crores and should not be older than ten years from the date of incorporation. Additionally, it should focus on innovation, development, or improvement of products, services, or processes.

 Private Limited Companies and LLPs are the most common choices for startups. Private Limited Companies are legally recognized and preferred by investors but involve higher compliance and incorporation costs. LLPs, on the other hand, are more affordable to set up, have fewer compliance requirements, offer limited liability, and are also widely accepted by investors globally.

 To draw investors, you need a strong product with a scalable business model and good visibility. Ensure your product gains traction and engagement. Register your business on the Startup India portal and actively reach out to investors. Be prepared to clearly explain your idea and demonstrate the long-term sustainability of your business.

 Incubators are organisations that support entrepreneurs in building their business during the early stages, often run by institutions experienced in business and technology. Accelerators, however, assist early-stage, growth-focused startups through time-bound programs lasting from a few weeks to several months, offering guidance and sometimes financial support.

 Yes. Any entity with at least one registered office in India can sign up on the Startup India hub, as the platform currently supports location preferences only for Indian states. The government plans to open registrations for global stakeholders in the future.

 An entity is regarded as a startup for up to 10 years from its incorporation or until it crosses an annual turnover of Rs. 100 crores—whichever comes earlier.

 After your application is processed and your startup is officially recognized, you will receive a system-generated Certificate of Recognition. This certificate can be downloaded from the Startup India portal.

 Yes. An existing entity can register as a startup if it meets the defined eligibility criteria. Once registered, it can access tax benefits, IPR benefits, and other incentives available to startups.

 Yes. To register on the Startup India website and avail of its benefits, the startup must have at least one registered office in India. Currently, the portal supports only Indian state locations, though global registrations are expected to be enabled in the future.

 Make sure your password meets all required criteria. It should be 8 to 15 characters long and include at least one uppercase letter, one lowercase letter, one number, and one special character. The portal only accepts passwords that follow this format.

 In this section, clearly describe the problem your startup aims to solve, the solution you are offering, what makes your idea innovative or unique, and how your business will generate revenue. Your description should reflect innovation or improvement in existing products, services, or technology.

 You need to provide the incorporation or registration certificate, details of directors or partners, a brief note about your business idea, and any proof of concept such as a prototype, website, or product demo if available.

 No, it is not compulsory to have a patent or trademark. However, startups involved in innovation can apply for intellectual property protection separately and avail benefits like reduced fees under the scheme.

 Once the application and documents are submitted, it generally takes around 2 to 10 working days for approval unless additional clarification is required.

 Yes. If your application is marked for clarification or rejected, you can update and resubmit it through your dashboard on the portal.

 No, GST registration is not mandatory for Startup India registration. However, it is required separately if your turnover crosses the prescribed limit or your business activity falls under GST regulations.

 Yes, a clear business plan helps. You need to explain the problem, solution, innovation, target market, and revenue model in your application.

 Yes. You can still apply if your idea focuses on innovation or improving existing solutions and has a scalable model. However, having a proof of concept strengthens your application.

 No, the application process on the Startup India portal is completely free of charge.

 Yes. You can still apply if your idea focuses on innovation or improving existing solutions and has a scalable model. However, having a proof of concept strengthens your application.

 Yes. You can still apply if your idea focuses on innovation or improving existing solutions and has a scalable model. However, having a proof of concept strengthens your application.

 Yes. You can still apply if your idea focuses on innovation or improving existing solutions and has a scalable model. However, having a proof of concept strengthens your application.

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