- The ideation stage is the first step in starting a new business. At this point, the entrepreneur would look for new business ideas and finalized his plans. Following that, the related market, product/service details, existing competition, manpower availability, funds, infrastructure, and so on must be thoroughly researched. The research would be used to build the business idea, and then a plan of action would be developed.
- It is critical to consult an advisor with specialized experience dealing with startups to ensure that the new business gets off to the best possible start. They can comprehend your business plan and advise you on legal entity selection, licenses, funding, taxation, and compliance.
- Docs planner specializes in providing startup advisory support. We have helped start over 1800 businesses across India in every industry possible. Our advisors are available 24/7, 365 days and can help answer various questions you may have concerning the legal formalities, business licenses, funding, income tax, GST and compliance.
- Under the Startup India initiative, eligible companies can get recognized as Startups by DPIIT, in order to access a host of tax benefits, easier compliance, IPR fast-tracking & more. Learn more about eligibility and benefits below.
- Should work towards development or improvement of a product,
process or service and/or have a scalable business model with
high potential for the creation of wealth & employment
EXEMPTIONS FOR STARTUPS
To promote growth and help the Indian economy, many benefits are being given to entrepreneurs establishing startups.
- Reduction in cost
The government also provides lists of facilitators of patents and trademarks. They will provide high-quality Intellectual Property Right Services including fast examination of patents at lower fees. The government will 208 EP-SBEC bear all facilitator fees and the startup will bear only the statutory fees. They will enjoy an 80% reduction in the cost of filing patents.
- Easy access to Funds
There are more than 10,000 crore rupees funds is set up by the government to provide funds to the startups as venture capital. The government is also giving guarantees to the lenders to encourage banks and other financial institutions for providing venture capital.
- Tax holiday for 3 Years
Startups will be exempted from income tax for 3 years provided they get a certification from Inter-Ministerial Board (IMB).
- Apply for tenders
Startups can apply for government tenders. They are exempted from the “prior experience/turnover” criteria applicable for normal companies answering to government tenders.
- R&D facilities
Seven new Research Parks will be set up to provide facilities to startups in the R&D sector.
- No time-consuming compliances
Various compliances have been simplified for startups to save time and money. Startups shall be allowed to self-certify compliance (through the Startup mobile app) with 9 labor and 3 environment laws.
- Tax saving for investors
People investing their capital gains in the venture funds setup by the government will get an exemption from capital gains. This will help startups to attract more investors.
- Choose your investor
The startups will have an option to choose between the VCs, giving them the liberty to choose their investors.
- Easy exit
In case of exit, a startup can close its business within 90 days from the date of application of winding up
- Meet other entrepreneurs
Government has proposed to hold 2 startup fests annually both nationally and internationally to enable the various stakeholders of a startup to meet.
Process of Recognition of Startup
The process of recognition as a ‘startup’ shall be through a mobile app/portal of the Department of Industrial Policy and Promotion.
Startups will be required to submit a simple application with any of the following documents:
(a) A recommendation (with regard the to innovative nature of business), in a format specified by the Department of Industrial Policy and Promotion, from any Incubator established in a post-graduate college in India;
Or
(b) A letter of support by any incubator which is funded (in relation to the project) by the Government of India or any State Government as part of any specified scheme to promote innovation;
Or
(c) a recommendation (with regard to the innovative nature of business), in a format specified by the Department of Industrial Policy and Promotion, from any Incubator recognized by the Government of India; Or
(d) a letter of funding of not less than 20 percent in equity by any Incubation Fund/Angel Fund/Private
Equity Fund/Accelerator/Angel Network duly registered with the Securities and Exchange Board of India
that endorses the innovative nature of the business.
Or
(e) a letter of fundingthe by Government of India or any State Government as part of any specified scheme to promote innovation;
Or
(f) a patent filed and published in the Journal by the Indian Patent Office in areas affiliated with the nature of business being promoted.
The process to register a private limited is complex and time-consuming. Our team at DOCS PLANNER can help startups and Entrepreneurs to Register Private Limited Company.