image source : http://www.starsofstartups.in
We at company360 get lots of queries around the process to get companies registered under the new initiative Startup India by Prime Minister Modi.
Before proceeding with this scheme it is important first to understand who can be a STARTUP ?
1) The Government under this policy clearly mentions that any company or legal entity willing to obtain the benefit under this scheme Must be a
So one can clearly see that, One Person Company and proprietorship are out of the list.
Therefore, in order to qualify for a startup you must be one of the above listed type of startup.
Once get your company incorporated in desired structure, there are few more criteria one must suffice to be part of this superb initiative.
2) Your company or LLP must be less than Five years from the date of registration, i.e it must be a legal entity that is not more than 5 years old.
3) Its turnover for any of the financial years has not exceeded Rs. 25 crores,
4) and It is working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property; Provided that any such entity formed by splitting up or reconstruction of a business already in existence will not be considered a ‘startup’.
The above mentioned all the conditions must be fulfilled in order to fill up the form for Startup India. Along with next set of pre-conditions.
1 out of 7 Pre-Condition
Besides above mandatory points anyone of the below mentioned 7 condition must be satisfied to proceed applying under this scheme:
- A startup fulfilling the above mentioned conditions should obtain a certificate of an eligible business from the Inter-Ministerial Board of Certification consisting of (anyone):
- Joint Secretary, Department of Industrial Policy and Promotion,
- Representative of Department of Science and Technology, and
- Representative of Department of Biotechnology.
Recommendation (with regard to innovation nature of business), in a format specified by Department of Industrial Policy and Promotion, from any incubator established in post-graduate college in India; or
Letter of support by any Incubator which is funded (in relation to the project) from Government of India or any State Government as part of any specified scheme to promote innovation;
Recommendation (with regard to innovative nature of business ), in a format specified by Department of Industrial Policy and Promotion, from any Incubator recognized by Government of India;
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 Securities and Exchange Board of India that endorses innovative nature of the business. Department of Industrial Policy and Promotion may include any such fund in a negative list for such reasons as it may deem fit;
Letter of funding by Government of India or any State Government as part of any specified scheme to promote innovation;
- Patent filed and published in the Journal by the India Patent Office in areas affiliated with the nature of business being promoted.
Lets repeat 4 mandatory pre-conditions along with 1 out of 7 pre-conditions must be satisfied before we proceed.
Once you fulfill all of these conditions and collect all the requisite documents you may proceed to file the application form here. http://startupindia.gov.in/registration.php
We personally feel in order to make yourself eligible fast for this policy you should proceed to register yourself as Private limited company and apply a patent on your company’s name. There are numerous advantages of registering a private limited company which will make things easy in future. Patents always add value to your company portfolio, applying for the same in early stage increases your market standing. Once you receive your patent application and patent publication number, you are eligible to apply your company registration under this startup recognition scheme and have complete access to the benefits of this wonderful scheme.