The Startup India campaign is a welcome initiative to boost entrepreneurship in India. It promotes bank financing, simplifies the incorporation process and grants exemptions to startups.
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*errorA startup is a business managed by the collection of a few people that solves a problem.
Such companies come into formation when the founders find some negatives in the existing system they have been working in and intend to solve the issues by creating a new company of their own.
Apart from this, a startup can also come into existence when the founder(s) come with a potentially great idea. The services such startups provide are the services they think currently exist in inferior quality or do not exist at all.
The biggest advantage of a startup is that it improves employment in the country as it is the direct result of more and more companies coming up. With the possibility of increased job opportunities, the Indian government has tried to help young companies grow and thrive in the Indian market. The Startup India initiative helps you to innovate and improve economic sustainable development.
Now that you have a better idea about what a startup is and what Startup India talks about, let us look into what all companies qualify as a Startup in India.
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Step 1: Incorporate your business
First things first, you need to incorporate your business as a Private Limited Company or a Limited Liability Partnership or a Partnership firm. You just need to follow the normal procedure that includes you filling up a form to get the registration.
Step 2: Register under Startup India
Now you need to register your firm or company as a startup in the Startup India scheme of the government. You just need to fill the form available for you on the Startup India website. You have to fill in all the details and upload a certain number of documents as well.
Step 3: Documents you need to upload in a PDF format only
How does a Startup obtain benefits under various Government schemes including the ones announced in the Action Plan on January 16, 2016?
An entity shall cease to be a Startup on completion of ten years from the date of its incorporation/ registration or if its turnover for any previous year exceeds one hundred crore rupees.
What is the timeframe for obtaining a certificate of recognition as a “Startup” in case an entity already exists?
The process of registration in such cases shall be real time and the certificate of recognition would be issued immediately upon successful submission of the application.
If an entity does not have a PAN. Would I be allowed to register my entity as a “Startup”?
Yes. An entity without a PAN can be registered as a Startup. However, it is advised that a valid PAN of the entity is provided at the time of registration, as each entity is a separately taxable person.
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