The startup company should be registered as a private company, partnership firm, or LLP- To get eligibility under this scheme, you must be a part of a private limited firm under the Indian Companies Act 2013. The LLP or Limited liability Partnership under the Indian Limited liability partnership act 2008 or any partnership firm under the 1932 Indian partnership act.
Your start up should not be the restructuring product- When you start your business, it should not be a reconstruction of the subsisting business. If the business is formed out of splitting an organization into two-part or more than that, then it won't be eligible for this scheme.
Your startup should not be more than 5 years older- All the startup business in India that has been incorporated in the last five years is eligible under this act. In short, businesses that are registered after 15th February 2011 are all eligible for this government scheme.
The annual turnover should not be greater than 25 cr - This is quite clear to understand that your company's annual turnover should not be more than 25 cr in the past 5 years after registration.
Benefits of Startup India Scheme
Let’s have a look at the benefits of startup India.
Self-certification- The startup companies are allowed to self certify their compliance with 3 environmental laws and 6 labor laws through a very simple online procedure.
The inspection period of labor law is 5 years. The startup will be inspected on the receipt of a verified and credible violation complaint in the form of writing to an inspecting officer.
For the environmental laws, the startup will fall under the ‘white category,’ which is defined by the CPCB (Central pollution control board) that would be able to self-certify the compliance. Startups are new to the ecosystem and end up negating them. To reduce the liability, the start ups are allowed to self certify their compliance with the nine labor and environmental laws. In this case, no inspection will be done within three years.
Tax Exemption- All the startups registered under the startup India scheme are exempted from the income tax. This rebate will be provided for the initial period of three years. If your investment is made by an incubator of higher value in comparison to the market, the value will be deducted. Any investment made by the investor is also deducted under this scheme. Tax exemption for the first three years or reaching a certain threshold limit means the startup can totally utilize the business revenue for development purposes.
Clearance from mobile app- One of the important benefits of the startup India scheme is that it will give you eligibility to the companies and an option to register through a single form. You can do this via the startup India Mobile app. Go to the play store and download the application. After downloading, you can use this form. This application has a form that will allow the startup to register. Even this app will provide you a single-window clearance for registration, approvals, compliance filing, etc. This is the easiest and most possible way to start as an individual.
Provide you the protection against patent- If you are the someone who has registered the patent, then you will know the process as well. Multiple steps are taken under this scheme to protect valuable intellectual property. It includes the fast-track exam of the patent application. A rebate of 80% of the total value of the patent fees is also granted after filing the patent.
Networking options- Under the Startup India scheme, all the startups will get the opportunities to meet the other startup companies at a particular time and place. These meetings will be conducted as fests. Every year this fest will be conducted twice.
The fests will be conducted on both national and international levels. This will offer the startup a great opportunity not to seek the funding only, and they will grow and develop by watching other startups also. This will offer them a big perspective of their day-to-day activity.
The Startup India scheme has become popular in India. Our respectable prime minister Mr. Narendra Modi has promoted this popular scheme to give an opportunity to the newcomer to India. The aim is to create a strong and helpful system that will be helpful for all startups' growth. The main aim is to empower startups so that they can achieve growth through innovation. This will promote the Indian economy and will provide you with the benefit of growth. The startup will be recognized through the Startup India scheme, and by this, you can promote it.
This scheme will work for the development, innovation, and deployment of a new product, process, and services driven by technology or intellectual property. The main aim is to develop and commercialize the new product, and it will significantly improve the existing product and the service and add value to the customers and the workflow. So if you are planning for a new startup, just go through the scheme, and this might help you to grow in the future