Requirements for Startup India Registration and DPIIT Approval

Through the Startup India initiative, qualifying companies can attain recognition as Startups by DPIIT, unlocking a range of advantages including tax benefits, streamlined compliance procedures, accelerated processing of Intellectual Property Rights (IPR) applications, and more. Delve into eligibility criteria and requirements or benefits outlined below.

Requirements for Startup India Registration as DPIIT, under the Department for Promotion of Industry and Internal Trade (DPIIT):

1. Firm/Company Registration: This involves registering your company as a legal entity with the appropriate government authorities, such as the Registrar of Companies (ROC) in India/CRC Centralised Department for Private Limited Company Registration in India. The startup should be registered as either a Private Limited Company, a Registered Partnership Firm, or a Limited Liability Partnership (LLP) and period of existence and operations should not exceed 10 years from its date of incorporation.
2. Udyam Registration: This refers to the registration process under the Ministry of Micro, Small and Medium Enterprises (MSME), formerly known as Udyog Aadhaar registration. It provides various benefits and incentives to small and medium-sized enterprises.
3. Brief Profile of Directors and Team; Pitch Deck/Brief About Company Products and Services: This requirement involves providing information about the key individuals involved in the company, such as directors and team members, as well as a pitch deck or brief overview of the company's products and services. This helps DPIIT understand the nature and potential of your startup.The startup should be focused on the development or enhancement of a product, process, or service, and/or possess a scalable business model with significant potential for generating wealth and employment.
4. Licenses and Registrations: Various licenses and registrations may be required depending on the nature of your business. These may include GST registration for tax purposes, labor, shops & establishment registration, food/drug licenses if applicable, Pollution Control Board (PCB) clearance, and any industry-specific licenses.
5. Annual Turnover: This refers to the annual revenue or turnover of your startup. It's likely used by DPIIT to determine eligibility for certain benefits or programs available to startups,The startup must maintain an annual turnover that does not exceed Rs. 100 crore for any of the financial years following its incorporation.
6. Others: The entity should not have been formed through the division or restructuring of an already existing business.

If new firms or companies meeting these criteria wish to register as startups under DPIIT connect at [email protected]

Tax exemption under section 80IAC of the Income Tax Act

After receiving recognition, a Startup India Certificate can pursue tax exemption under section 80IAC of the Income Tax Act. Upon approval, the Startup becomes eligible for a tax holiday spanning 3 consecutive financial years within its initial ten years post-incorporation.

Eligibility criteria for Income Tax exemption (80IAC) application:

1. The entity must hold recognition as a Startup.

2. Only Private Limited Companies or Limited Liability Partnerships (LLPs) qualify for Tax exemption under Section 80IAC.

3. The Startup should have been incorporated after 1st April 2016.

Tax Exemption under Section 56 of the Income Tax Act (Angel Tax):

Following recognition, a Startup can pursue Angel Tax Exemption.

1. The entity must hold recognition as a Startup by DPIIT.

2. The aggregate amount of paid-up share capital and share premium of the Startup, post the proposed share issue, if any, should not exceed INR 25 Crore.

Startups with DPIIT or Udyam registration are eligible for subsidies when they possess Intellectual Property Rights (IPR) and seek assistance from the Office of the Controller General of Patents, Designs, and Trademarks (CGPDTM), a department under the Government of India, Compliance Calendar LLP supports startups in initiating and process of filing and processing their applications for patents, designs, and trademarks and Startup Consultation

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