In the early stages, startup companies have little or no revenue coming in. They have an idea, and they have to develop it, test it, and market it. That takes a considerable amount of money, and startup owners have several potential sources to tap. A startup is a company founded by one or more entrepreneurs in order to develop a unique product or service and bring it to market. By its nature, the typical startup tends to be a shoestring operation, with initial funding from the founders or their families.
Here in this article let us understand how to register a startup.
How to Register a Start up?
Startups are becoming very popular in India. In order to develop the Indian economy and attract talented entrepreneurs, the Government of India, under the leadership has started and promoted the Startup India initiative to recognize and promote startups. Below mentioned is the process to start or register a startup.
- Step 1
You must first incorporate your business as a Private Limited Company, Partnership Firm, Limited Liability Partnership. You have to follow all the normal procedures for registration of any business like obtaining the certificate of Incorporation/Partnership registration, PAN, and other required compliances.
- Step 2
Then the business must be registered as a startup. The entire process is simple and online. All you need to do is log on to the Startup India website and fill-up the form with details of your business and upload certain documents.
Note:For the Incorporation of a Company, a business has to check company name availability to ensure that the proposed name selected does not contain any word as prohibited under the Companies Act, 2013. You can conduct a company name check here.
- Step 3
Upload the required documents:
- A letter of recommendation must be submitted along with the registration form.
- You need to upload the certificate of incorporation of your company/LLP (Registration Certificate in case of a partnership)
- A brief description of the innovative nature of your products/services.
- Step 4
Startups are exempted from income tax for 3 years. But to avail of these benefits, they must be certified by the Inter-Ministerial Board (IMB). Start-ups recognized by DIPP, Govt. of India can now directly avail IPR related benefits without requiring any additional certification from IMB.
- Step 5
- a) You must register your new company as a Private Limited Company, Partnership firm or a Limited Liability Partnership
- b) Your business must be incorporated/registered in India, not before 5 years.
- c) Turnover must be less than 25 crores per year.
- d) Innovation is a must– the business must be working towards innovating something new or significantly improving the existing used technology.
- e) Your business must not be as a result of splitting up or reconstruction of an existing business.
- Step 6
Log on Startup India Portal https://startupindia.gov.in/registration.php.
- Step 7
Enter your Legal Entity.
- Step 8
Enter your Incorporation / Registration No.
- Step 9
Enter your Incorporation / Registration Date.
- Step 10
Enter the PAN Number (optional), address, Pin Code & State, & details of the Authorized Representative.
- Step 11
Enter the Details of Directors and Partners & Upload the essential documents and Self – Certification in the prescribed manner. Later file the Incorporation / Registration certificate of the company.
Here in this article, we have understood the steps to incorporate a company, it will surely be useful for you to grow your business. If you’re wondering about registering your company then you should visit the Online Company registration portal.