Startup India is an initiative by the Government which aims at generating employment and increasing wealth creation in India.
With a huge network that includes 50k+ startups, 30+ Government departments, and thousands of incubators, investors, mentors, and accelerators, Startup India Portal is said to be India’s largest online entrepreneurship platform.
The portal creates an Indian Startup Ecosystem that fosters entrepreneurship and promotes new ideas by giving the stakeholders access to a huge network, free tools, and various training programs.
Most asked questions for Startups India
1.What are the key benefits of the Startup India scheme?
- Benefits in Finance:
The government under its scheme provides an 80% refund on the patent publishing costs and reduces the elongated time of patent registration and approval. The government also pays the fee of the facilitator to get the patent done.
- Benefits in Income Tax:
Startups under Startup India can enjoy an income tax relief of 3 years after the date of startup registration. These benefits can only be availed if the firm is certified with the Inter-Ministerial Board.
Also if a startup invests its money in special funds can claim relief from tax on capital gain under the Income Tax head.
- Benefits in the Registration process:
With startup India scheme, the registrant has an easy to fill log on a form to start the process. A meeting is held at the Start-up India hub and a single doubt solving window is kept to help these registrants with their queries.
This reduces procrastination due to long registration procedures and increases the number of startups registration.
- Government schemes and tenders:
Getting a tender passed from a government becomes easy under the Startup India scheme. Companies registered under Startup India are prioritized when it comes to passing a government tender.
Here these startups don’t require any prior experience but are supported under the defined scheme.
- Industry Networking Opportunities:
Startup India organizes various events, fests, training programs, and awareness campaigns for startups and entrepreneurs where people with different mindsets and ideas come along to meet in one place.
The small firms registered under the Startup India program get the opportunity to connect with various stakeholders to help them grow their business.
2. How can I register my business under Startup India?
Steps involved in the registration process:
Step 1) Business Incorporation:
Startups need to ensure its entity is registered as a Private Limited Company or can also be registered as a Partnership firm or Limited Liability Partnership.
The business needs to obtain their PAN card along with incorporation certificate and required compliances.
Step 2) Register on the Startup India website here
The Startup has to register online on the Startup India portal, where it has to log on to the authorized Startup India website and fill the details in the form followed by the submission of business documents.
Step 3) Documents submission or uploading process
In this step, the startups need to submit and verify the required documents (PDF format only).
Below is the list of documents needed to be uploaded:
- a) Submit the letter of recommendation
The registrant needs to submit any one of the support documents from incubators or letter of funding by state or central government or a patent filed and published by an authorized government entity.
Get a detailed list of documents and the process of getting recommendations through the below link.
- b) Startup Registration Certificate
Next, a startup needs to upload the incorporation certificate of the company or LLP.
- c) Business description
A document with a brief description of the business idea is uploaded to the portal.
3. How Startups Can Apply For Funding Through The Startup India Program?
- To apply for funding, a startup needs to evaluate its need for funding by estimating its growth potential, ROI, and profitability.
- A business pitch including all important aspects from business plans to legal disclosure is to be prepared.
- Research and identification of potential investors is made by the applicants.
- An option to connect with the interested investors in the region is available on the Startup India website to get them and present the pitch.
- Based on the investor’s interest and a mutual agreement on the terms and policies of both the parties, the final declaration on the funding revels.
4. How Can Someone Help Me Through The Process Of Registration?
Startup India registration process involves some legal aspects which are to be taken care of.
Having a legal advisor with a better understanding of these certificates and government formalities can help these startup founders to smoothly complete the process.
Apart from this, the legal expert can guide the newbie owners with the government clause, help them understand different criteria and schemes under which they stand, and advise them to avail of the benefits related to their growth stage.
Experts help startup founders acknowledge their rights and their eligibility for certain government schemes.
5. What Are The Requirements For Qualifying In The Startup India Scheme?
In order to be competent as a startup for the Startup India program, a business should satisfy the following criteria:
- The firm must be registered as a private limited company or LLP
- A company can avail Startup India benefits until it has completed a period of 7 years (as per new rules) from the date of registration.
- If a company doesn’t cross the 100 crores (now 25 crores) mark as its annual revenue in any of the 7 to 10 years span then it remains eligible to be called a startup.
- The registered firm should be DIPP approved.
- The company should be funded either with Incubation Fund, Private Equity Fund, or an Angel Fund.
- The company must have its own patent published with Indian Patent.
- A recommendation letter from incubation is needed.
- The business idea must be innovative enough to be eligible for registration.
- All funding details must be registered with the Securities and Exchange Board of India (SEBI).
6. How Do I Get A Loan For My Startup From The Startup India Program?
To get a loan for their business, a startup has many options where the financial institutes and the registered banks like HDFC Bank, ICICI Bank, Citi Bank, Bank of Baroda, and State Bank of India have issued various application forms for them to fill up and learn about the details.
An applicant needs to visit the official websites of these lenders, study the required process, fill the provided loan process form, and upload the required documents. An applicant can also follow the same process by physically visiting the nearest branch of the lender.
The filled details and the submitted documents are verified and the applied loan amount is directly transferred to the applicant’s bank account.
7. I Have An Innovative Idea For My Startup. How Can Startup India Guide Me To Pursue It?
Ronnie Screwvala, an Indian entrepreneur has started a Startup India Learning Program under the Startup India scheme which is a free online entrepreneurship learning program.
This program helps the entrepreneurs to develop critical thinking with their structured learning process to take their ideas to the next level.
During its 4-week sessions, the program covers all key lessons of starting a venture from the top 40 founders of India. The course is free of cost and is available in 2 languages (Hindi and English).
8. In The Case Of An Existing Entity, In What Time-frame A ‘startup’ Can Obtain A Certificate Of Recognition?
Once you have successfully submitted your application, it takes 2-3 working days for the certificate of recognition to be issued.
9. How Can A Startup Connect With A Mentor/ Investor?
Any startup registered under the Startup India portal is given a chance to send 3 connection requests in a week. A “connect” option is provided on the mentor’s profile which is to be clicked to send the connection request to the mentor.
Once the mentor accepts the request, a startup can talk to them through a chat interface. A mentor can get a brief understanding of the startup by visiting a startup’s profile.
10. What Is The Procedure To Claim Reimbursement By Patent Facilitators To Services Offered To Startups?
A startup has to apply for a patent in the Patent office, once they receive the application, the facilitator has to claim for fees based on the fee schedule given in SIPP Scheme.
A letter has to be drafted to the head office of the applied Patent office, which includes the details about the claimed fee for the applied patent and the ID proof of the registered Patent Agent. This letter is accompanied by an invoice.
11. What Role Do Investors Play In Adding Value To A Startup?
- Investors manage Stakeholders of the company to ensure smooth operations and also impart direction to the company based on their experience.
- Based on the startup stage, Investors guide them to raise funds in various rounds of funding.
- Helps recruit the right set of people for the organization especially the senior-level executives.
- Investors also take interest in product/service marketing strategies to give their inputs.
- Investors have an eagle eye on the M&A opportunities in the local entrepreneurial market to help the startup grow faster.
- From idea to the growth stage, Investors help their firm with the organizational structuring process to scale up the startup with increased efficiency and lower costs.
Wondering, why GED speaks for Startup India?
Startup India is an initiative that promotes new ideas and encourages an entrepreneurial spirit among young talent. We at GED foster the same kind of enthusiasm among the startup aspirants by standing by their side at every stage of their business.
Mentoring business ideas, startup registration process, funding consulting, or making a startup growth strategy, GED with its legal services and startup services covers every small aspect where a startup needs help to make their idea a reality.
You can get a clear idea of how GED and Startup India correlates in the below table;