Prime Minister of India, Narendra Modi, launched the Startup India program, there has been an incredible surge in the number of startups coming up.
What makes you a startup under the Startup India program?
- The firm has to be a private limited company or a limited liability partnership
- The company remains a startup for the first ten years, post the date of registration. In the recent past, the Indian government changed that to 10 years from 7 years to give opportunities and tax exemptions for the companies for a longer run
- The company remains a startup if the turnover per year does not cross the Rs 100 crore mark in any of the 10 years. Once the company crosses the mark, it no longer remains eligible to be called a startup. The mark of Rs 100 crore too has been improved by the Indian government in the recent past from Rs 25 crore
- The firm should have approval from the Department of Industrial Policy and Promotion (DIPP)
- The firm should be funded by an Incubation Fund, an Angel Fund or a Private Equity Fund
- A patron guarantee from the Indian Patent and Trademark office is necessary
- You must have a recommendation letter by an incubation
Documents you need for Startup registration.
You need a letter of recommendation along with the registration form. You can get any one of the following recommendation letters.
- A recommendation letter from an Incubator known in a post-graduate college in India, in a format approved by the DIPP. This is regarding the innovative nature of the business.
- A recommendation letter from an incubator that the Government of India funds as part of any specified scheme to promote innovation.
- A letter from any of the Incubators, recognized by the Government of India, in DIPP format.
- A letter of funding not less than 20% in equity, by an Incubation Fund, Private Equity Fund, Angel Fund, Accelerator, Private Equity Fund, registered with SEBI that endorses the innovative nature of business.
- A recommendation letter by the Central or any State Government of India.
- A patent filed and published in the Journal of Indian Patent office in areas affiliated with the nature of the business being promoted.
- Registration or Incorporation Certificate
You need to upload the certificate of incorporation of your company or LLP, or the registration certificate for a partnership company.
- Brief description of your business
