Startup Registration Process
The Startup India initiative is a program launched by the Government of India in 2016 to promote and support entrepreneurship, innovation, and the growth of startups in the country.
The process is 100% online and can be initiated with a single form in the Government portal. To avail of the benefits under this program, you must register your business as a startup. Below are the detailed steps to register and make the most out of this initiative.
The first and crucial step in the process of registering your startup is to formally incorporate your business tailored to your specific needs and preferences.
You can register your business as following types:
- Private Limited
- LLP
- OPC
- Public Limited
- Sole Proprietorship
- Partnership
- Section 8 Company
Please note: It's essential to understand that DPIIT recognition does not apply to all types of incorporated entities. To know more about the eligible entity type, click here.
Here is a brief outline of the business registration process:
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- Obtain a Digital Signature Certificate (DSC)
Acquire DSCs to securely authenticate electronic documents and transactions. This ensures the integrity and security of online submissions throughout the registration process. - Secure Company Name Approval View
Select a suitable and unique company name, then submit it to the MCA for approval. Ensure the chosen name complies with MCA guidelines and is not already in use. You can perform a quick company name search on our website to avoid any potential issues before proceeding. - Apply for Business Registration
Once your chosen name is approved, begin the incorporation process. This entails providing comprehensive information about your business's structure, registered office, directors, shareholders, and other crucial details.
For Private Limited and One Person Company (OPC) registrations, utilize SPICe+, while FiLLiP is for LLP registration. - Obtain a Certificate of Incorporation
After thoroughly reviewing your application, the MCA will issue you a Certificate of Incorporation (COI). The COI signifies the successful establishment of your startup, granting it a distinct legal identity.
The above steps can differ for various company types, and additional compliances might apply depending on the nature of the business and industry.
* Effective 15th July, 2024, DSC charges have increased by ₹ 1,000 per DSC, by the Government. This will be chargeable over and above the given prices.
The next step is to create an account on the Startup India website. This process is 100% online and can be done through the following steps:
- Visit the official website of “Startup India”.
- Create an account by clicking “Register” if you don't have one. You can also log in if you already have an account.
- Fill out the online application form with accurate and detailed information about your startup, like your name, the startup stage, etc.
- Once submitted, your profile will be created.
After creating your profile on the Startup India website, you can access a wide range of opportunities and resources available on the portal.
The last step of Registration includes getting the Department for Promotion of Industry and Internal Trade (DPIIT) Recognition. To apply for DPIIT Recognition for your startup, follow these steps:
- Visit the Startup India website and log in using your registered profile credentials.
- After logging in, go to the 'Recognition' section on the website.
- Under the 'Recognition' tab, you should find the option to 'Apply for DPIIT Recognition.' Click on this option to initiate the application process.
- On the next page, you will typically encounter two options:
a. 'Apply as Company or LLP'
b. 'Apply as Partnership Firm'
Choose the option that corresponds to the legal structure of your startup. - Fill out the application form with accurate and detailed information about your startup, including its business model, founders, and other relevant details.
- Upload the required documents as mentioned above.
- As part of the application, self-certify that your startup meets the DPIIT's eligibility criteria and is not involved in any activities that disqualify it from recognition.
- Submit your application through the online portal.
Once recognised by the DPIIT, your startup can leverage these benefits to accelerate growth, access funding opportunities, and contribute to India's growing entrepreneurial ecosystem.
Documents Required to Register a Startup under DPIIT
- Incorporation/ Registration Certificate for your startup.For detailed information on documents required specific to different types of company registration, check out the respective pages along with the steps.
- Authorization letter of the authorised representative of the company, LLP, or partnership firm
- LLP Agreement/Partnership Deed in Case of a Firm
- Memorandum of Association (MoA) and Articles of Association (AoA) in case of a company
- PAN of the Business
- Identity proof of the Applicant
- Based on the startup stage, additional documents like Pitch deck, Website/App link, Proof of funding, List of awards, Patent and Trademark details, etc.
Eligibility for Startup India Recognition
To qualify as a Startup in India, companies must obtain recognition from the Department for Promotion of Industry and Internal Trade (DPIIT) and meet specific predefined eligibility conditions. Below is a detailed breakdown of the eligibility requirements for Startup India recognition.
Benefits of Startup Recognition under DPIIT
The recognition includes the following key provisions to support startups in the patent and intellectual property (IP) process:
- A panel of "facilitators" regulated by the Controller General of Patents, Designs, and Trademarks (CGPDTM) will offer guidance on IP matters and international IP protection.
- The Central Government will cover facilitators' fees for all patents, trademarks, or designs filed by startups. You only need to pay the statutory fees.
- There is an 80% rebate on patent filing fees compared to other companies, reducing costs during the initial years.
The progress in patents and trademarks can be accessed through a fast-tracking application system.
For the most current information on the patent or trademark application process, as well as the necessary documents, you should directly contact a Facilitator. The choice of Facilitator may depend on your specific industry sector and the jurisdiction in which you intend to file your application.
You can self-certify compliance with 6 Labor and 3 Environmental Laws through a simplified online process.
For Labor Laws, inspections will only be conducted for 5 years if a credible written complaint, approved by a higher-level officer, is received. Startups categorized as white (non-polluting industries) by the Central Pollution Control Board (CPCB) can also self-certify for environmental laws.
Here is a list of Labour Laws and Environment Laws eligible for self-certification:
The Department for Promotion of Industry and Internal Trade (DPIIT) has established the Startup India Seed Fund Scheme (SISFS) with a budget of INR 945 Crore to offer financial support to startups through Incubators.
This can help you in various stages of your journey, including Proof of Concept, prototype development, product trials, market-entry, and commercialization.
The seed fund can be disbursed as follows:
- A grant of up to Rs. 20 Lakhs to validate their Proof of Concept, develop prototypes, or conduct product trials. This grant is disbursed in installments based on milestones.
- Up to Rs. 50 Lakhs in investment for market entry, commercialization, or scaling up through convertible debentures or debt-linked instruments.
Numerous Central Government and State schemes provide early-stage funding opportunities. These include schemes like Credit Guarantee Scheme, NIDHI PRAYAS, NIDHI SSS, BIRAC's initiatives, and TIDE 2.0, among others.
Under the Insolvency and Bankruptcy Code of 2016, startups with simple debt structures or those meeting specific income criteria can complete the insolvency process within 90 days of application filing.
Once filed, an Insolvency Professional will be appointed to take control of the company, including asset liquidation, creditor repayment, and closing the business within 6 months while upholding the principle of limited liability.
This encourages entrepreneurs to freely experiment with fresh and innovative ideas without the burden of navigating intricate and time-consuming exit procedures.
As a DPIIT Recognized Startup, you can list your products on the Government e-Marketplace (GeM) by registering as a Seller.
GeM is a prominent online procurement platform used by the government for acquiring products and services. This makes it easier to access a potential market for their products.
You can also avail exemption on the following during Government Tenders:
- Prior Experience/ Turnover
- Earnest Money Deposit (EMD) or Bid Security
How to Get a Certificate of Recognition from DPIIT?
Upon submitting your application for Startup India registration, you will be provided with an Acknowledgment Receipt Number (ARN) to track the status of your certificate.
DPIIT will examine your application as well as documents. Once verified, it will issue a Certificate of Recognition (DIPP Certificate), which includes a unique Recognition number and the date of recognition that can be used during different stages of your business.
With your Certificate of Recognition, you can access various benefits and support offered under the Startup India initiative, including tax exemptions, funding opportunities, and more.
How to Get a Registration Number for a Startup?
The number mentioned on the Certificate of Incorporation (COI) issued by the Ministry of Corporate Affairs (MCA) serves as the official registration number for your startup.
The Corporate Identification Number (CIN) or Limited Liability Partnership Identification Number (LLPIN) is crucial for identifying your business in legal and regulatory contexts.
Example of CIN- L17110MH1973PLC019786
Example of LLPIN- AAR 1352
How Long Does it Take to Register a Startup under DPIIT?
The Certificate of Recognition from the Department for Promotion of Industry and Internal Trade (DPIIT) is typically issued promptly, within 2 working days of submitting your application.
However, the overall timeframe for officially registering your startup under DPIIT may extend to approximately 10-15 working days. This extended timeline accounts for the steps involved in the startup incorporation and registration process, including obtaining necessary documents, registering with the MCA, registering with Startup India, etc.
Some common factors responsible for delays are-
- Incomplete or Incorrect Documentation: Providing incomplete, inaccurate, or mismatched documents can result in delays.
Please note- If, upon subsequent verification, it is discovered that the required document is either missing, incorrectly uploaded, or found to be forged, there are legal consequences.
In such cases, you may be subject to a penalty equal to 50% of your paid-up capital, with a minimum fine of Rs. 25,000. - Delay in Verification Process: Government agencies may need time to verify the information provided in your application.
- Delay in MCA registration step: Your registration with MCA can be delayed due to name approval issues, technical server errors, etc., which further affects the registration under DPIIT.
Several factors can cause delays in your startup registration process. It's advisable to consider these factors and monitor them closely to ensure a streamlined and seamless registration experience.
Startup Registration Fees
While the registration process under Startup India and DPIIT is generally straightforward and free of charge, it's worth noting that incorporation with the MCA can incur additional costs.
These costs can include fees related to
- Name Reservation
- Director Identification Number (DIN) application
- Incorporation fees based on authorized capital
- Stamp duty
- PAN/TAN application fees and GST registration fees, if applicable.
This cost depends on several factors, including the type of business entity, professional fees, and other specific requirements.
Checklist for the Registration of a Startup
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Complete your Name Approval.
Register your startup with the MCA.
Fill out the “Startup India” form.
Provide requisite details and documents.
Check Eligibility.
Apply on the DPIIT portal.
Track the application status.
Download the Certificate of Recognition.
FAQs
How can Razorpay Rize assist me in the startup registration?
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We provide seamless registration for Private Limited Company, One Person Company, and Limited Liability Partnership. To explore our range of services, Click here.
