Startup India Recognition and its benefits

Startup India is a flagship initiative of the Government of India, intended to catalyse startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship. The main goal of Startup India is to ensure that each startup transforms into a viable business and is able to scale its growth. Keeping this in mind, Startup India recognises startups in order to give them exclusive benefits. 

How to Apply for Startup India

• Log in to www.startupindia.gov.in, if you are not registered then register first.

• Click on Application for recognization of Startup
• Fill out an application form and upload your company profile.
• After 2 to 3 days

Role of young entrepreneur in the Indian economy.

A recognized Startup can avail various benefits including:

• Section 80-IAC of Income Tax benefit: Income Tax exemption for 3 years post-approval from IMB
• Section 56 of Income Tax exemption benefit: Tax exemption on Investment above Fair Market Value
• Intellectual Property Rights (IPR) Benefits: : 
  1. Fast-tracking of Startup patent applications
  2. Panel of facilitators to assist in filing of IP applications
  3. Startups are provided an 80% rebate in filing of patents and 50% rebate in filing of Trademarks vis-à-vis other companies
• Relaxation in public procurements norms: Subject to certain conditions, Startups are entitled to avail exemption with following condition:
  1. Prior Turnover and Experience
  2. Earnest Money Deposit
• Self-Certification for compliance under certain Labour & Environment laws for a period of 5 years from the date of incorporation
• Access to Fund of funds for startups: To provide equity funding support for development and growth of innovation-driven enterprises, the government has set aside a corpus fund of 10,000 crores managed by SIDBI
• Faster exit for startups: MCA has notified Startups as ‘fast track firms’ enabling them to wind up operations within 90 days vis-a-vis 180 days for other companies
• Recognised startups may raise External Commercial Borrowings up to USD 3 Mn
• Easier compliances for recognized startups: Requirement to hold 2 board meetings in a financial year in place of 4; allowance to get annual return signed by the director, in case there is no company secretary and many more

How to apply Loan under Startup India

These benefits and resources are available to #StartupIndia recognised Private Limited companies, LLPs and Registered Partnership firms.