Startups are rapidly growing across India, supported by various government initiatives aimed at encouraging innovation and entrepreneurship. A startup is typically a business that introduces innovative products or services to solve existing problems or improve current solutions.
Startup India
Launched by the Government of India under the leadership of Narendra Modi, the Startup India initiative aims to strengthen the Indian economy by promoting innovation, supporting new ventures, and enabling access to funding and mentorship.
Below are the 7 essential steps to register your startup in India:
Step 1: Incorporate Your Business
Before applying under Startup India, you must legally incorporate your business in one of the following forms:
- Private Limited Company
- Limited Liability Partnership (LLP)
- Partnership Firm
Registration is done through:
- Registrar of Companies (ROC) – for Private Limited Company or LLP
- Registrar of Firms – for Partnership Firm
You must submit the required documents and government fees to obtain the Certificate of Incorporation or Partnership Registration.
Step 2: Register on the Startup India Portal
Visit the official Startup India website and click on “Register.”
- Enter your name, email ID, mobile number, and password.
- Verify your email using the OTP sent.
- Fill in details such as startup stage, type of entity, and other required information.
Once completed, your Startup India profile will be created.
After registration, you can access:
- Incubator and accelerator programs
- Mentorship opportunities
- Government schemes
- Funding options
- Learning and networking resources
Step 3: Obtain DPIIT Recognition
After creating your Startup India profile, apply for DPIIT recognition.
DPIIT stands for the Department for Promotion of Industry and Internal Trade.
To apply:
- Log in to your Startup India account
- Click on “Apply for DPIIT Recognition” under the Recognition tab
- Submit the required business details and supporting documents
Benefits of DPIIT Recognition:
- Tax exemption for 3 consecutive years
- Exemption on investment above fair market value
- Self-certification under labour and environmental laws
- Relaxation in public procurement norms
- Easier winding-up process
- Access to the government’s Fund of Funds
- Support for intellectual property filings
Step 4: Apply Through National Single Window System (NSWS)
On the next page, click on “Apply Now”. You will be redirected to the National Single Window System portal.
Companies and LLPs must:
- Register on the NSWS website
- Add the form “Registration as a Startup”
- Fill out the Startup Recognition Form
This process is required to obtain DPIIT recognition from the Department for Promotion of Industry and Internal Trade.
Step 5: Fill the Startup Recognition Form
In the Startup Recognition Form, provide the following details:
- Entity details
- Registered office address
- Authorised representative details
- Directors/Partners information
- Business activities and innovation details
- Self-certification declarations
Click the “+” icon to complete each section of the form. After filling in all required information, accept the terms and conditions and click “Submit.”
Step 6: Documents Required for Registration
Keep the following documents ready while applying:
- Certificate of Incorporation/Registration
- PAN of the entity
- Proof of funding (if applicable)
- Authorisation letter of the authorised representative
- Proof of concept (pitch deck/website link/video for validation or scaling stage startups)
- Patent or trademark details (if any)
- Awards or recognition certificates (if any)
Step 7: Receive Recognition Number & Certificate
After submission, you will receive a Startup Recognition Number.
The Recognition Certificate is generally issued within 2 working days, subject to document verification.
Additional Benefits for Recognised Startups
1. Intellectual Property Benefits
Startups can apply for:
- Patent registration
- Trademark registration
- Design registration
The government provides up to 80% rebate on patent filing fees, and startups only need to pay statutory fees through authorised facilitators.
2. Funding Support
Access to funding has been a major challenge for startups due to high risk and lack of collateral.
To address this, the Government launched the Startup India Seed Fund Scheme (SISFS) on 21 January 2021 with an outlay of ₹945 crore to provide financial assistance to startups over four years.
3. Self-Certification Under Labour & Environment Laws
Recognised startups can self-certify compliance under:
- 6 Labour Laws
- 3 Environmental Laws
This benefit is available for 3 to 5 years from incorporation, reducing compliance burden and allowing startups to focus on growth.
Units operating under 36 white category industries listed by the Central Pollution Control Board are exempt from clearance under three environment-related Acts for three years.
4. Tax Exemption Benefits
Eligible startups can claim income tax exemption for 3 consecutive years under the Income Tax Act.
To avail this benefit:
- The startup must be incorporated on or after 1 April 2016
- It must obtain certification from the Inter-Ministerial Board (IMB)
Key Features of the Fund of Funds for Startups (FFS)
The Fund of Funds for Startups is a major funding initiative under the Startup India campaign, designed to boost capital availability for emerging businesses.
1. Managed by SIDBI
The Fund of Funds is managed by the Small Industries Development Bank of India (SIDBI), which oversees investment decisions and fund allocation.
2. LIC as Co-Investor
The Life Insurance Corporation of India (LIC) acts as a co-investor, strengthening the financial backing of the Fund.
3. Investment Through SEBI-Registered Venture Funds
The Fund of Funds does not invest directly in startups. Instead, it invests in SEBI-registered Alternative Investment Funds (AIFs), also called “daughter funds.”
- It contributes up to 50% of the corpus of these venture funds.
- The remaining 50% must already be raised by the daughter fund.
- Based on its contribution, the Fund of Funds may have representation on the board of the venture fund.
These venture funds are regulated by the Securities and Exchange Board of India (SEBI).
4. Sector-Wide Support
The Fund ensures diversified sectoral coverage, including:
- Manufacturing
- Agriculture
- Healthcare
- Education
- Technology and other emerging sectors
This diversified approach helps promote balanced economic growth across industries.
FAQs on Startup India Registration
1. What is the Startup India Scheme?
The Startup India Scheme is a flagship initiative launched by the Government of India to promote innovation, entrepreneurship, and job creation by supporting eligible startups with tax benefits, compliance relaxations, and funding opportunities.
2. What is DPIIT recognition and why is it important?
Recognition from the Department for Promotion of Industry and Internal Trade (DPIIT) is mandatory to avail tax exemptions, self-certification benefits, and intellectual property support under the Startup India initiative.
3. Is GST registration mandatory for a Startup India registered entity?
GST registration is required only if the startup crosses the prescribed turnover threshold or falls under mandatory GST registration categories under GST law.
4. Can a sole proprietorship register under Startup India?
No. Only entities incorporated as a Private Limited Company, LLP, or Partnership Firm are eligible for Startup India registration.
5. What tax benefits are available under Startup India?
Eligible startups can apply for a 3-year income tax exemption under Section 80-IAC, exemption on capital gains under certain conditions, and relief under angel tax provisions (subject to eligibility).
6. Can a startup lose its recognition status?
Yes. A startup will lose its recognition if it crosses ₹100 crore turnover in any financial year or completes 10 years from incorporation, whichever is earlier.
7. Is there any government funding available for startups?
Yes. The Startup India Initiative facilitates funding through schemes like the Fund of Funds for Startups (FFS), SIDBI support, and state-level startup policies.
8. Can a startup modify its details after registration?
Yes. Startups can update certain details through the Startup India portal, subject to verification and approval.
9. Is professional assistance required for Startup India registration?
While registration can be done online, professional guidance ensures proper drafting of startup activities, correct documentation, and higher chances of approval.
10. What happens if the startup recognition application is rejected?
If rejected, the entity can review the reasons for rejection, correct deficiencies in documentation or activity description, and reapply through the portal.
