How Can You Register a Startup Company In India?

22 July 2023

A startup company refers to a newly set up business, which is usually small. Typically, it is started by one or a group of individuals. This entity mainly focuses on developing a new product/ service. However, it can be associated with launching a refined version of a current product/ service by introducing innovation.

How to Register a Startup Company in India

Here are some simple and standard steps to register a startup in India:

Step 1: Incorporate Your Entity

In this step, you should decide the types of company registration from a Private Limited Company, a Partnership Firm, or a Limited Liability Partnership (LLP). To register any of these companies, ensure submitting the application and procuring the Certificate of Incorporation/ Partnership registration. 

Fill out the application form and submit it to the Registrar of Companies (ROC) of your region. In the case of establishing a Partnership Firm, the application for business registration will be submitted to the Registrar of Firms of your region. This application process requires a fee together with supporting documents. (We’ll share the checklist of documents below.)

Step 2. Get Registered with Startup India Portal

In this regard, CAAQ provides consulting support for startup India registration online. We help you discover how to get registered online. For this process, follow these guidelines:

• Visit the Startup India website.
• Press “Register” button there. A form will pop up.
• Fill up your name, email ID, mobile number, & password.
• Then, hit the “register” button. It will raise a request for verification.
• For verification, check your email ID and other details, such as the user type, name, stage of the startup, etc.. Verify and enter the OTP. Finally, click the “submit” button.  
• This process will create your startup India profile online. Once created, you become able to apply for leveraging acceleration, incubator/ mentorship programmes, etc. In addition, other resources like Learning & Development Program, Government Schemes, State Policies for Startups, and Pro-Bono services. 

Step 3: Get DPIIT Recognition

• This step helps you to get the Department for Promotion of Industry and Internal Trade (DPIIT) recognition, which brings several benefits along with. They can be associated with intellectual property services and resources, relaxation in public procurement norms, self-certification under labour and environment laws, easy winding of the company, tax relaxation on investment exceeding fair market value, and also, to enjoy it for 3 consecutive years.
• To get these benefits, log in to your profile using your credentials on the website. Select the “DPIIT Recognition for Startups” tab, which is given under the “Schemes and Policies” tab. 
• On the next page, click the “Get Recognised” tab. A new screen will pop up. Scroll down and select the “click here for submitting your application for recognition as a Startup” tab.  

Step 4. Apply for Recognition

• Open the “Startup Recognition Form”.
• Fill in the details of the entity, full address of your office, authorised representative, directors/ partners, startup activities, and self-certification.  Enter these details by clicking the plus sign on the right side of the form.
• At the end, agree to and accept the terms and conditions and click the “submit” tab.

Step 5.  Documents Uploading

This step requires uploading documents for registration. Here is the list of all documents:

• Incorporation/ Registration Certificate of Your Startup
• Proof of Funding
• Authorisation Letter
• Proof of Business Concept, such as Pitch Deck, Website Link/ Video
• Patent and Trademark Credentials, If Any
• PAN Number
• List of Awards or Recognition If Any

Step 6: Obtain the Recognition Number

Once submitted the application form, a Recognition Number is issued in the name of your startup company. You get the certificate of recognition once your documents are verified successfully. It hardly takes two working days once you submit your papers online.  

Note:

• Ensure that your documents are uploaded correctly.
• Ensure that the uploaded documents are correct. If they are forged, the penalty of 50% of your paid-up capital with a minimum fine of INR 25K shall be levied on you.

Step 7: Miscellaneous Arrangements

• Patents, Trademarks, or Design Registration

This is for registering your innovation or trademark for your business. There would be a list of facilitators that issue it. Hire CAAQ consultancy for startup India registration and trademark. It requires you to pay the statutory fees and save up to 80% of the fee. 

• Availing Funds

Being a startup, it’s no less than a nightmare to find any investor. Here, the government provides support. It has set up a fund with an initial corpus of INR 2,500 crore and a total corpus of INR 10,000 crore for a period of four years. It is the fund of funds, which won’t be directly invested into a Startup directly. But, it shall be included in the capital of SEBI registered Venture Funds. 

• Self-Certification under Employment and Labour Laws

This self-certification helps reduce the compliance cost of the Startup. It relaxes in compliance under six labour laws and three environmental laws for 3 to 5 years from the date of incorporation. Furthermore, it helps in focusing on the core practices. It also avoids 3 environment-based Acts for 3 years.

• Relaxation in Tax

Being a startup, your entity will be free from paying income tax for three years. To leverage these relaxations, you must certify with the Inter-Ministerial Board (IMB). It is applicable for fresh businesses incorporated on or after the 1st of April 2016.

Apart from this, there is another method for startup growth and mentorship. It is the MAARG portal. Furthermore, it helps in availing sector-focused guidance, handholding, and assisting startups throughout its running. With it, mentors and their respective mentees can meet easily to leverage expertise and build a result-based business lifecycle.