Under the Startup India Scheme, eligible companies can get recognized as Startups by DPIIT, in order to access a host of tax benefits, easier compliance, IPR fast-tracking & more. Most startup companies are focused on increasing revenues and maximizing profits by various methods. However, the initial stage involves bootstrapping their organizations out of their hard-earned money. One of the ways to grow earnings is to reduce the cost. The government retains 30% of our income in form of tax which leads to higher costs. A startup is any small business commenced with the objective to solve a problem operated by the founder or a single person.
Eligibility criteria for Startup Registration in India
- An entity shall be considered as a Startup up to a period of ten years from the date of incorporation or registration if it is incorporated as a private limited company or registered as a partnership firm or a limited liability partnership in India.
- Turnover should not exceed INR 100 crore in any of the financial years since incorporation/registration.
- An entity should be working towards innovation, development, or improvement of products or processes, or services, or it should be a scalable business model with a high potential for employment generation or wealth creation.
An entity formed by splitting up or reconstruction of an existing business shall not be considered a Startup.
Considering the above, if you are an eligible entity to register as a startup, you can see the steps to register under DIPP.
In the course of business, startups, like any other business entity, can rely heavily on specific intellectual property (IP) rights, and especially one that aspires to cater to a global market should ensure that its intellectual properties are adequately protected. There are several intellectual property benefits that can be availed under startup registration.
In addition to the above, a startup can also avail of tax benefits by registering with startupindia.org.