1. Financial Benefits

The majority of the startups are patent-based. It implies they produce or give exceptional products or services. So as to register their patents, they need to acquire a heavy cost which is recognized as the Patent Cost. Under this scheme, the government gives 80% reduction on the patent costs. In addition, the procedure of patent registration and related is quicker for them. Likewise, the government pays the fees of the facilitator towards obtaining the patent.

2. Income Tax Benefits

The startup has a good amount of benefits under the Income Tax Act. After getting recognition a Startup can apply for Tax exemption under section 80 IAC of the Income Tax Act. After getting clearance for Tax exemption, the Startup could avail tax holiday for 3 consecutive financial years out of its first ten years since incorporation. After getting recognition a Startup might apply for tax-exempt under Section 56 of the Income Tax Act (Angel Tax).

Special Benefits

•    Manufacturing business startups are exempted from the criteria of ‘prior experience’ or turnover. However, there is no relaxation in the quality standards or the technical parameters regarding public procurement.

•    National Credit Guarantee Trust Company or SIDBI ensures guaranteed funds for over 4 years.

•     Labor Laws inspections shall not be carried out in the first 3 years of incorporation.

•    Environment law compliances are only compulsory after self-certification.

•    Winding up of the corporation could be completed in just under 90 days under Insolvency and Bankruptcy Code.

3. Registration Benefits

Under the Startup India scheme, an application is there to make easy the registration. A single meeting is arranged towards the Start-up India hub. Also, there is a single doubt and problem-solving window for them.

4. Government Tenders

Under startup India scheme, the startups have the benefit of participating in public procurement job by means of tenders in getting government tenders. Also, there is relaxation in prior experience, EMD or turnover criteria.

5. Huge Networking Opportunities

Networking Opportunities implies the opportunity of meeting with a variety of startup stakeholders at a specific place and time. The government gives this opportunity through conducting 2 startups fests annually nationally and internationally level allowing various stakeholders of a startup to meet. The Startup India scheme also offers Intellectual Property awareness workshop as well as attentiveness.

• Startups shall be allowed to self-certify compliance for 6 Labour Laws and 3 Environmental Laws through a simple online process.
• For labor laws, no inspections shall be carried out for a period of 5 years. Startups might be inspected only on receiving of reliable and confirmable grievance of infringement that is filed in writing as well as accepted through at least one level senior towards the inspecting officer.
• For environment laws, the startups that come under the white category would be able to self-certify compliance, as well as only random checks, would be carried out in such matters.

Govt. of India has decided to promote the Start-Up ecosystem in the country. In this connection, various incentives and ease in regulatory compliance provisions are being conceptualized. Start-Ups are defined by Department of Industrial Policy and Promotion (DIPP), as an entity shall be considered as a eligible Startup to apply for recognition in following cases:

1. If it is incorporated as a Private Limited Company (as defined in Companies Act, 2013) or a registered Partnership Firm (registered under section 59 of the Partnership Act, 1932) or a Limited Liability Partnership (under the LLP Act, 2008) in India up to a period of 10 years from the date of incorporation/registration.
2. Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded Rs. 100 crore.
3. Entity is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.

All directors and shareholders need to provide Self-attested copy of

• PAN Card
• ID Proof (Aadhar card/ Voter ID/ Driving license)
• Address Proof in the name of director (Any utility bill i.e., mobile bill/water bill/ electricity bill, or bank statement which should not be older than two months)
• 4 Passport Size Photographs.
• Address proof of Registered office
• Any utility Bill (i.e., mobile bill/water bill/ electricity bill) of the registered office
• Minimum 2 Directors for Pvt. Ltd.
• Minimum 2 Shareholders for Pvt. Ltd. / LLP
• Minimum 1 Shareholder & 1 Nominee for OPC
• Directors and shareholders can be the same person
• DIN (Director Identification Number) for all Directors / Designated Partners
• DSC (Digital Signature Certificate) for one of the Directors / Partners