FAQs on Start Ups in India
Q.1 What is Startup India?
Startup India is a flagship initiative of the Government of India, intended to build a strong ecosystem that is conducive for the growth of startup businesses, to drive sustainable economic growth and generate large scale employment opportunities. The Government through this initiative aims to empower startups to grow through innovation and design.
Several programs have been undertaken since the launch of the initiative on 16th of January, 2016 by Hon’ble Prime Minister, to contribute to his vision of transforming India into a country of job creators instead of job seekers. These programs have catalyzed the startup culture, with startups getting recognized through the Startup India initiative and many entrepreneurs availing the benefits of starting their own business in India.
Q.2 What are the benefits provided under the Startup India Scheme ?
For availing various benefits under the Startup India scheme, an entity would be required to be recognized by DIPP as a startup by applying at https://www.startupindia.gov.in/content/sih/en/startupgov/startup-recognition-page.html.
The benefits provided to recognized startups under the Startup India initiative are
1. Self-Certification: Self-certify and comply under 3 Environmental & 6 Labour Laws
2. Tax Exemption: Income Tax exemption for a period of 3 consecutive years and exemption on capital and investments above Fair Market Value
3. Easy Winding of Company: In 90 days under Insolvency & Bankruptcy Code, 2016
4. Startup Patent Application & IPR Protection: Fast track patent application with up to 80% rebate in filling patents
5. Easier Public Procurement Norms: Exemption from requirement of earnest money deposit, prior turnover and experience requirements in government tenders
6. SIDBI Fund of Funds: Funds for investment into startups through Alternate Investment Funds.
Further, the Startup India portal – www.startupindia.gov.in – is a one-stop platform for all stakeholders in the startup ecosystem to interact amongst each other, exchange knowledge and form successful partnerships in a highly dynamic environment.
Q.3 What qualifies as a Startup under the Startup India scheme?
An entity shall be considered as a Startup:
The Startup should be incorporated as a private limited company or registered as a partnership firm or a limited liability partnership
Turnover should be less than INR 100 Crores in any of the previous financial years
An entity shall be considered as a startup up to 10 years from the date of its incorporation
The Startup should be working towards innovation/ improvement of existing products, services and processes and should have the potential to generate employment/ create wealth. An entity formed by splitting up or reconsutruction of an existing business shall not be considered a “Startup”
Note: An entity formed by splitting up or reconstruction of a business already in existence shall not be considered a ‘Startup’.
Q.4 How can I register a profile on the Startup India Website?
Registering a profile on the Startup India website is a fairly simple process.
1. Simply click on ‘Register’ and fill in the details as required in the registration form. An OTP will be sent to your registered email address, post submitting which your profile will get created.
2. You will have an option to select your profile type. For ‘Individuals’, the profile goes live immediately, whereas for ‘Startups’, the profile goes under moderation for 24-48 Hrs, post which you will be able to avail all benefits on www.startupindia.gov.in.
Q.5 What is the difference between a Startup registered on the Startup India website and a DIPP recognised Startup?
As stated in the previous query, a Startup which has a profile on the Startup India website is considered a registered Startup on the portal. These Startups can apply for various acceleration, incubator/mentorship programmes and other challenges on the website along with getting an access to resources like Learning and Development Program, Government Schemes, State Polices for Startups, and pro-bono services.
For DIPP-recognition, the Startups have to apply at
https://www.startupindia.gov.in/content/sih/en/startupgov/startup-recognition-page.html 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 SIDBI Fund of Funds, tax exemption for 3 consecutive years, and tax exemption on investment above fair market value.
Q.6 Can a Foreign Company register on www.startupindia.gov.in?
Any entity having atleast one registered office in India is welcome to register on www.startupindia.gov.in.
Q.7 How do I connect to enablers after creating a profile?
Once you’ve created your profile on www.startupindia.gov.in, you can find relevant mentors, investors and incubators you would want to reach out to. These enablers are housed under the ‘Ecosystem’ tab on the top of the page. You may also check your dashboard to find relevant stakeholders basis your industry and preferred stage.
Under the profile of every enabler there will be an option to ‘Connect’. Upon clicking, a request will be sent to the respective profile for acceptance. Once accepted, you will be able to see the enabler as a new connection and henceforth engage in a discussion with them.
Please feel free to get in touch if you have any doubts or need clarifications.
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