Friday, March 18, 2016

5 Rules of Registration of Startups Every Entrepreneur Should Know!

Every venture is not a startup for Indian government startup India stand up India scheme. The startup has to be recognized by the government as per rule. This post is to simplify the conditions and requirements for being recognized as the startup in India as per government scheme. One must not that only when your startup is registered as startup , that you get tax benefits for startup or labour laws relaxation for startups and also funding by government agencies set up in this regard . So here are five most important things everyone who is mulling idea to start a startup should know 

Is there a published law for recognition of the startups ?

Yes, Clause 5 of the Notification for startup India scheme as published on 17 Feburary 2016 provides the rules for process and other requirements for recognition of startups. 

What type of enterprise  can be regarded as startup ?

As per notification It is working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property

Where should  I send the application ?

Application for being approved has to be uploaded only through an startup mobile app which is being launched within a week . Once  application for startup registration  with relevant document is uploaded a real-time recognition number will be issued to the startup. 

What documents Needed to be uploaded for Registration?

An startup need any one of the documents listed below to upload along with the application for registration of startup 

i) a recommendation (with regard to innovative nature of business), in a format specified by Department of Industrial Policy and Promotion, from any Incubator established in a postgraduate college in India; or 

ii) a letter of support by any incubator which is funded (in relation to the project) from Government of India or any State Government as part of any specified scheme to promote innovation; or 

iii) a recommendation (with regard to innovative nature of business), in a format specified by Department of Industrial Policy and Promotion, from any Incubator recognized by Government of India; or 

iv) a letter of funding of not less than 20 per cent in equity by any Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel Network duly registered with Securities and Exchange Board of India that endorses innovative nature of the business. Department of Industrial Policy and Promotion may include any such fund in a negative list for such reasons as it may deem fit; or

v) a letter of funding by Government of India or any State Government as part of any specified scheme to promote innovation; or 

vi) a patent filed and published in the Journal by the Indian Patent Office in areas affiliated with the nature of business being promoted. 

When will the startup lose its recognition ?

As per the notification by DIPP ,an entity shall Not be considered as a ‘startup if 
a) five years from the date of its incorporation/registration has crossed or ,
b) If its turnover for any of the financial years  exceeds Rupees 25 crore





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