Saturday, March 19, 2016

Penalty for Startup Fixed at 50% of Paid up Capital or Rs 25000 Whichever More !

Startup India program hopefuls should note that the registration process of startups require uploading of relevant documents. As per the government rules notified earlier, it hs penalty clause for any startup who secures the registration either without necessary documents or with forged documents . 

Penalty for Startups

If you peruse the DIPP notification of rules for startups , it has been proved at the end that the startup will be penalised if it is found at later date that startup is registered either without necessary documents or forgery . The penalty is fixed at 50% of paid up capital or Rs 25,000 whichever is more.

 Read the relent clause below

Once such application with relevant document is uploaded a real-time recognition number will be issued to the startup. If on subsequent verification, such recognition is found to be obtained without uploading the document or uploading any other document or a forged document, the concerned applicant shall be liable to a fine which shall be fifty per cent of paid up capital of the startup but shall not be less than Rupees 25,000. This notification shall come into force on the date of its publication in the Official Gazette.
It therefore suggested that when they start applying for the startups , they should vet the documents properly.

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