Registration Procedure of a Start Up in India

The registration procedure for a start-up is easy and hassle-free. The startup entity is required to submit a straightforward application form along with any of the following documents:

• Recommendation from any incubator set up in an Indian postgraduate college, in the format required by the Department of Industrial Policy and Promotion (with regard to the innovative nature of business); or
• A letter of support from any incubator that has received funding from the Indian government or any state government (in relation to the project) as part of any designated program to foster innovation; or
• A recommendation from any incubator recognized by the government of India (with regard to the innovative nature of the business), in the format specified by the Department of Industrial Policy and Promotion; or
• A letter endorsing the innovative nature of the business that commits at least 20% of equity from any incubator fund, angel fund, private equity fund, accelerator, or angel network that has been properly registered with the Securities and Exchange Board of India. For whatever reasons it sees fit, the Department of Industrial Policy and Promotion may include any such fund on a negative list; or
• A letter of funding from the Indian government or a state government as part of a specific program to encourage innovation;
• A patent that the Indian Patent Office has filed and published in the Journal in fields related to the type of business being promoted.

Benefits for Start Up units in India

There are various benefits offered to start ups in India. All of them fall under the 1961 Income Tax Act. According to the 1961 Income Tax Act,

• According to Section 80I-AC of the Income Tax Act, a 100% deduction may be claimed in any three consecutive years out of ten years after the year in which the eligible start-up is incorporated if the following requirements are met:
  • ■ A private limited company or limited liability partnership must be the assessee.
  • ■ The business's total revenue in the immediately prior year to the year in which the deduction is first requested should not have exceeded 100 crore.
  • ■ It must be incorporated between April 1, 2016, and April 1, 2021, and it cannot be created by the division or reconstruction of an existing business.
  • ■ It is not created through the transfer of equipment or plant that was previously used for any purpose in India to a new business.
  • ■ It has an Inter-Ministerial Board of Certification certificate stating that it is an eligible business, as published in the Official Gazette by the Central Government.
• When net consideration is invested in the startup's machinery and plant, it is exempt under Section 54GB of the Income Tax Act.
• Exemption from section 56(2)(viib)'s requirement.

Start Up India Services at JAMPRS- How can we assist you?

Accountants at JAMPRS can help you register your business under the Start Up India Scheme as quickly and inexpensively as possible. Contact us now to avail yourself of our Start Up India services.