What are the legal compliances required for a Start-up?
Startup

What are the legal compliances required for a Start-up?

Startups & Law

Entities incorporated under the Companies Act, 2013 as a private limited company or registered as a partnership firm under section 59 of the Partnership Act, 1932 or a limited liability partnership under the Limited Liability Partnership Act, 2008 in India are regarded as start-ups ten years from their incorporation.

Also read How to Register Your Startup in India: 5 Simple Steps for Registration

These start-ups are expected to follow certain legal requirements. Various legal, regulatory, and annual compliance deadlines, laid down by the Acts which govern start-ups, must be complied to. Non-compliance may lead to start-ups facing penalties, closer inspections and may even lead to disciplinary actions against its directors. Additional fees may be imposed if there is a delay in any submissions; these costs keep going up as long as they are delayed. To avoid these complications all compliances must be adhered to.

Annual Compliances required by a start-up:

One of the foremost legal requirements for startups are Annual Compliances that each startup is required to comply with.

  • Annual General Meeting: Every start-up is required to have a general meeting once a year. The annual compliance deadline for the same should be no later than September 30th, six months after the conclusion of the fiscal year. The approval of financial statements, the announcement of income, the registration or nomination of auditors, the appointment and compensation of directors, and the appointment and compensation of officers all take place during this annual general meeting.
  • Director’s Report: Having a director’s report is another crucial annual compliance. The Director's Report ought to be publicly disclosed each year. The report should be signed by the company's chairperson who has been given permission by the board. The directors are required to submit an annual written statement to the corporation in the format required for the directors' report.
  • Annual Filing of Returns and Financial Statements: E-form MGT-7 is the electronic form allocated by the Ministry of Corporate Affairs (MCA) for companies and start-ups to file their annual returns and financial statements to the Registrar of Companies (“ROC”). All businesses are given access to this computerised form to submit the specifics of their annual return. The annual compliance deadline for every corporation to submit its annual return is within 60 days of the annual general meeting. For new start-ups, these returns should be filed with the new Company registration.
  • Income Tax Filing: Income tax is to be filed by all individuals, start-ups and other companies annually. Even if a start-up company does not produce any money during the fiscal year, filing an income tax return is required. It is mandatory to make financial statements, prepare income tax returns, and file income tax returns.
  • GST Return Filing: Even if they no sales are made during the month or year, all companies, start-ups and individuals selling goods and services in India are required to register for GST and file GST returns. GST registration is are a necessary annual compliance for start-ups selling goods and services in India.  
  • Statutory Audit Compliances: At the conclusion of the fiscal year, every firm is expected to prepare its accounts and have them audited by a Chartered Accountant. In order to determine if an organisation is giving a clear and accurate picture of its financial condition, the statutory audit looks at data such as account balances, bookkeeping records, and banking transactions. Therefore, start-ups must also appoint an in-house auditor to ensure that there are no discrepancies in records.

You may also read Tax Exemptions: Know About Incentives For Start-Ups

Legal Requirements for a Start-up:

  • The First Board Meeting- The first meeting of the board of directors is a regulatory compliance that is mandatory for newly incorporated companies and should take place within 30 days of the incorporation of your company. After that, there should be a total of four Board meetings throughout the year. At least two board meetings should be held annually for new small businesses. A board meeting is a requirement that should not be skipped.
  • Internal Company Compliance: Monthly and Annual audits of financial statement must be carried out diligently since they are an essential part of the regulatory compliance. The holding of the annual general meeting, conducting a business analysis, discussing findings with the top staff, etc. It is necessary to update and review firm policies and practises, as well as to keep track of legislative changes and compliance requirements.
  • Maintenance of Required Registrations and Records: Maintaining registration and recordkeeping is a legal requirement for start-ups. The documents must be kept current and accessible to company personnel. A register of directors, a register of company members, a register of shares, a register of chairs, and so on should all be included in the registration. Additionally, the business is required by law to maintain the records. The following documents must be preserved and updated on a regular basis: Transactions statements, Minutes Book of Board Meetings/AGM or other meetings; Books of Accounts; Financial Statements; ROC File etc. Records include decisions made by the board of directors, board meeting minutes, the results of the annual general meeting, and the company's articles of incorporation. It is necessary to keep all of this data.
  • Obtaining Licenses and their Renewals: In India, seeking licenses within 40 days of incorporation is a legal requirement for start-ups. All start-ups must have the following licences: Trade License, Import and Export Code, Shop and Establishment Act License, etc. These licences, depending on their nature, must be renewed annually, before the licence expires, or as instructed by the licence authority.
  • Other Statutory Compliances: Compliance to various acts such as the Employee Provident Fund Scheme, 1952; The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013; The Industrial Disputes Act, 1947 The Employee’s State Insurance Act, 1948; Minimum Wages Act 1948; Trade Union Act. 1926 are essential legal requirements for start-ups.

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It is pertinent for startups to know the various legal requirements applicable to them. Annual compliance deadlines should not be missed, as failure to abide by the compliance regulations, may lead to punitive liability, that may include monetary or other impositions.

 

Tax Exemptions: Know About Incentives For Start-Ups
Startup

Tax Exemptions: Know About Incentives For Start-Ups

To boost up the start-up ecosystem in India, the government has introduced special tax incentives for start-ups over the years. These start-up tax deductions are for enterprises which qualify as “eligible start-ups”.

Eligible start-ups must be incorporated either as a private limited company, or as a partnership firm, or a limited liability partnership with a turnover of less than INR 100 Crores in previous fiscal years. An entity is considered to be a start-up only until 10 years from the date of its incorporation. Additionally, the start-up should be attempting to innovate or improve current goods, services, and procedures, and it should have the potential to produce money and jobs. It is mandatory for the "Start-up" to not be a company created through the division or reconstitution of an existing business.

Also read How to Register Your Startup in India: 5 Simple Steps for Registration

Tax benefits for start-ups:

Following Tax benefits have been given to startups:

  • Income tax exemption for a period of 3 consecutive years: 

Start-ups that were founded between April 1, 2016, and March 31, 2022, meet the requirements to be approved for a three-year tax exemption under Section 80 of the Income Tax Act. After receiving approval for tax exemption, a start-up may take advantage of this start-up tax deduction for three consecutive fiscal years during the first 10 years following incorporation. If their annual turnover does not exceed Rs. 25 crores in any financial year, these entrepreneurs will be qualified for a three-year, 100% tax exemption on profit during a block of seven years. This tax exemption is aimed to lead the firm better-off to cover their initial working capital needs.

  • Tax Exemption under Section 56 of the Income Tax Act (Angel Tax)

If a start-up has received DPIIT recognition and its total paid-up share capital and share premium after issuing or proposing to issue shares is less than INR 25 crores, it is eligible for an exemption from the angel tax. Angel tax is imposed on the funds raised by unlisted companies through the issuance of shares from an Indian investor, if the share price of the issued shares exceeds the company's fair market value. The excess realisation is regarded as income and subject to the appropriate taxes. Only investments made by a resident investor are subject to the angel tax. The tax imposed on investments in qualified start-ups that exceed fair market value has been waived by the government. This tax holiday is valid on investments made by resident angel investors, family or funds which are not registered as venture capital funds.

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  • Tax exemption on capital gains

Start-ups are exempted from paying taxes under Section 54EE of the Income Tax Act. The tax on long-term capital gains is connected to this exemption. If a long-term capital gain, or a portion thereof, is invested in a fund that has been approved by the Central Government within six months of the asset transfer date, start-ups are excluded from paying tax on that gain. Amounts up to Rs. 50 lakhs can be invested in the long-term defined asset. For a period of three years, this sum must stay invested in the designated fund. This start-up taxation exemption will be terminated in the year that the money is withdrawn if it is withdrawn prior to 3 years.

  • Tax exemption to individual/HUF on investment of long-term capital gain in equity shares of eligible start-ups

The government permits a tax exemption under Section 54GB of the Income Tax Act with regard to the tax on long-term capital gains from the sale of any residential property, provided that such gains are invested in any MSME enterprise, as well as eligible start-ups. Therefore, tax on long-term capital will be exempted in any situation where an individual or HUF sells a residential property and invests the capital gains to purchase 50% or more of the equity shares of the eligible start-ups, provided that such shares are not sold or transferred within 5 years of the date of their acquisition. Therefore, tax on long-term capital will be exempted if an individual or HUF sells a residential property and invests the capital gains to purchase 50% or more of the equity shares of the eligible start-ups, if such shares are not sold or transferred within 5 years of the date of their acquisition. The start-ups are expected to use the funds invested to buy assets; however, they must not transfer such assets within five years of the asset's purchase date.

  • Set off of carry forward losses and capital gains allowed in case of a change in Shareholding pattern

Start-ups whose shareholders have held their shares from the last day of the year in which the loss was incurred to the last day of the previous year in which such loss is to be carried forward are eligible for the set off and carry forward of losses. If all of the shareholders of the firm who had voting shares on the last day of the year in which the loss was incurred continue to own shares on the last day of the previous year in which such loss is to be carried forward, then losses incurred by eligible start-ups may be carried forward.

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How to Register Your Startup in India: 5 Simple Steps for Registration
Startup

How to Register Your Startup in India: 5 Simple Steps for Registration

Many potential startup founders do not know what their first step should be while setting up a startup. Startup Registration is the first step a founder should take, post selecting, which entity needs to be set up. Startup registration is simple in India. We bring the five simple steps, every founder needs to follow, to register startups in India.

You may like to read What are the legal compliances required for a Start-up?

Startup Registration in India

Five steps for Startup Registration are:

Step 1: Incorporation of the Startup

This is the first step in which the startup is required to incorporate itself as a private limited company or a partnership firm or a limited liability partnership. A startup founder, may incorporate his startup by approaching the Registrar of Companies, if he wants incorporate a private limited company or a LLP or by approaching the Registrar of firms, if he wants to incorporate a partnership firm.

Step 2: Registration with Start-up India

Under this stage, a startup is required to mandatorily register itself as a start-up on the start-up India website.

Step 3: DPIIT Recognition

After the creation of a profile on the Start-up India website, the start-up is required to obtain a certificate of recognition from the Department for Promotion of Industry and Internal Trade (DPIIT).

Step 4: Recognition Application:

On the Recognition Application form (provided on the Start-up India website), a start-up is required to fill in the details such as the entity details, full address (office), authorized representative details, directors/partner details, information required, start-up activities and self-certification.

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Step 5: Submit Documents for Business Registration

The following documents are required for registering a startup in India.

  1. Certificate of Incorporation / Registration Certificate and PAN
  2. Email ID and Mobile number
  3. Company Details (Industry, Sector, Category, Regd. Office Address, etc)
  4. Directors/Partners Details (Name, Photo, Gender, Mobile No. Email ID, Full Address)
  5. Details of Authorised Representative (Name, Designation, Mobile No. Email ID)
  6. A Brief about business and products/services and notes on innovations
  7. Revenue model and Uniqueness of the Product
  8. Website
  9. Pitch Deck
  10. Video
  11. Declaration by a Startup for exemption under Section 56(2) (viib) of the Income Tax Act, 1961 on Letterhead.

Upon completion of the above steps, the startup is registered and is allotted a unique recognition number.

Miscellaneous Questions:

  1.  Is Funding required at the time of registration of business?

No, funding is not required at the time of registration of business. Many startups start as bootstrapped businesses i;e they self fund themselves. Investors also invest in registered startups and hence, one should not look for funding before startup incorporation.

      2     Is it essential to obtain copyrights and IPR Registration?

Government incentivises those startups that obtain copyright and IPR registration. Moreover, it is pertinent for startups to have their intellectual property protected, right from the incorporation stage. Even investors who come for startup funding prefer those startups who have already procured copyright and IPR registrations.

Also, read What are the legal compliances required for a Start-up?
 

Know About The Laws For Startups
Startup

Know About The Laws For Startups

Startups Accelerate The Innovative Spirit And Energize Societal-Economic Cohesion 

Business is the new ongoing, ever happening movement of the world. The onward march of economy and society depends on the continual churning and development of businesses. Businesses are energized by the vigour of innovations and entrepreneurship. And, a very significant aspect of modern businesses is the rise of start-ups. Well, a startup or start-up is technically defined as a company or project undertaken by an entrepreneur to seek, develop, and validate a scalable business model. The concept of startup has become more popular in recent times. It is widely believed that start-ups keep up the innovative spirit, they continually make the world move and help people find new meanings and dimensions of the running time. Startups heighten the interest in business and innovation, thus they create stronger integration of society and economy, leading to more universal dynamism and energy.  

Also read Know About The Annual Compliance Filings For LLPs.

Laws That Govern The Startups 

In the modern times, almost all arenas of human activism and development are governed by certain written manuals and laws that form the overall outline for the proper functioning and interaction of various elements and stakeholders within that paradigm. Startups are no exception to this rule. Since startups aggregately reflect the aim and aspiration to rise high, they are subsumed by competition and ambition, so laws are all the more important in the context of startups as they are bound to involve friction and various forms of conflicts and disputes. 

 Besides, startups are businesses of a different type, so their laws vary at least to some extent from the routine business laws. Some startups are as under: 

The Formalisation Of Business Structure 
The understanding and applying proper business structure is needed because different business structures have different business applications while carrying out the business. There are various forms of business structure eg - proprietorship, partnership, limited liability partnership, and private limited company.

There are various legal details such as registration, legal status, taxation, member liability, number of members allowed, etc. Example:- legal status explains that the proprietorship and partnership do not have different legal entities and liability is on the promoter himself and in limited liability partnership, a private limited company separate legal entity is recognized and the promoters are not responsible personally for the liabilities.

The Issue Of Licensing In Startups 
Every business requires licenses as per the type of business carried out. Before initiating a startup the appropriate licensing issuing process must start to stay away from the legal battles at the inception. The licenses vary from business to business. Eg:- if an e-commerce company has to be started than VAT tax, service tax, registration, and professional taxes would be applied. The common licensing applied for most of the business under the law is the shop and establishment act, 1953.

Read about The Shop And Establishment Act - The Law That Governs Indian Businesses

The Laws Of  Taxation & Accounting
The government scheme of startup India launched has given many tax exemptions for startups. Different businesses need different tax policies to be applied according to the tax and business structure applied. For tax exemptions in a startup, the first 7 years' lifespan can be availed for tax benefits. The organization must be registered as the limited liability partnership company. The total turnover for the starting years must not be more than 25 crores annually.

 The Labour Laws
Every business firm has employees or labour for proper and efficient functioning on a daily basis. Many laws related to labours like minimum wages act, gratuity, Provident funds payment, paid holidays to workers, maternity benefits, harassment at workplace, payment of bonus, etc.

Even the government has provided an exemption from labour inspection for a startup if they apply all the major 9 labour laws of the country regularly for worker's benefit:
The Industrial Disputes Act, 1947
The Trade Unit Act, 1926
The Inter-State Migrant Workmen (Regulation of Employment and Service) Act, 1979
The Payment of Gratuity Act, 1972
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
The Employees’ State Insurance Act, 1948.
Building and Other Constructions Workers’ (Regulation of Employment and Conditions of Service) Act, 1996
The Industrial Employment (Standing Orders) Act, 1946
The Contract Labour (Regulation and Abolition) Act, 1970

 Intellectual Property Rights 

Startups many times come up with unique and different ideas that can be protected in this world using certain laws. Our innovative product, improved process or procedure of making something in a better way can be counted as our innovative property rights.

The startup scheme for intellectual property rights is associated to the startup India program. This scheme would ensure the protection and commercialization of intellectual property and manage the trademark, copyright, and designs involved in the business startup. Under these guidelines for new startups, the government has reduced the patent fees by 80%. The panel would also have the duty to inform people in the market about the procedure of filing for patents or any other intellectual property.

You may also read Trademark Agreement - The Law To Preserve And Facilitate Creativity.


Laws Regarding Foreign Investments 
To encourage, foreign investment in the startup there are regulations for foreign venture capital investors (FVCI). Schedule 6 of the foreign exchange management act (FEMA), 2000, and the third amendment in this same act in 2016 has used for regulating investments.

Any investor from abroad may contribute to the 100% of the capital of the Indian startup engaged in any activity or business under Schedule 6 of Notification No. FEMA. The equity or debt instruments can be issued instead of foreign remittance in a firm.

 Winding Up The Business
When a business has started the laws must be known about the windup because no one knows when the worst would come. The winding-up process is a systematic process with 3 modes of winding-up which are fast track exit, court or tribunal route, and voluntary closure.

In the fast track exit, the company should not have any assets liabilities left and no past business must be entertained in the process of winding up and the company’s name can be removed afterward from the registrar of companies (ROC).


The Conclusion:

The laws that govern startups walk the tightrope between encouraging startups and protecting business ethics. And these laws strive to do that quite well, 

MSME Registration in India
Startup

MSME Registration in India

What is MSME Registration?

The Micro, Small and Medium-sized Enterprises Development Act allows MSMEs in the manufacturing and service sectors to register as MSMEs or SSIs. It is not compulsory to register as an MSME. But, you should still register as it provides several projects benefits such as tax benefits and protection against non-payment.

Who is eligible for MSME Registration? 

Only manufacturers, producers, and service providers must use the MSME tag and register under it. Any manufacturer or service provider who meets the eligibility requirements may use the MSMEs single window registration system to register. The revised eligibility requirements effective from July 1, 2020, are applicable for the three types of Enterprises. This includes Micro Enterprises with Investment up to Rs 1 crore and turnover up to Rs 5 crore, for Small Enterprises with Investment up to Rs 10 crore and turnover up to Rs 50 crore, for Medium Enterprises with investment up to Rs 50 crore and turnover up to Rs 250 crore. Any form of business entity may obtain Micro, Small & Medium Enterprises (MSME) registration or Udyog Aadhaar registration. This includes Partnership Firms, Private Limited Companies, Public Limited Companies, Limited Liability Partnerships, Hindu Undivided Families, Self-Help Groups Societies, Co-operative Societies, Trust Others.

Is Registration Compulsory for MSMEs? 

Registration under the MSMED Act is not compulsory for MSMEs and Small Scale Industries (SSIs). But, it is always better to register, because a registered SSI or MSME gets a lot of benefits. The procedure for registering is completely online and is very simple. You require your entity’s name, Aadhaar number, bank account and PAN details. After you fill in your details, a reference number gets generated and you receive your certificate after verification of details.

People Also Read This: The Startup India Scheme

MSME Registration Certificate

Once you are registered and the process of verification is complete, you will obtain an MSME registration certificate. This certificate is proof that your entity or company is now registered as an MSME. This MSME/SSI registration certificate is valid for your entire lifetime. If you want to get your registration cancelled, you would need to write an application to the nearest Udyog Aadhaar Registration Centre and specify the business and the reasons behind cancelling the registration.

Can an Individual Register for an MSME Registration? 

Anyone who wants to start a micro, small, or medium business may use the Udyam Registration portal to fill out a self-declaration form with no need to upload any records, papers, certificates, or evidence. During MSME registration, business owners must provide correct personal information such as name, Aadhar, industry name, PAN, mobile number, and bank account details. Furthermore, for MSME registration, business owners are not expected to pay any fees. A permanent identification number, known as the Udyam Registration Number, will be given to the entity when it registers. On completion of the registration process, an e-certificate, also known as the Udhyam Registration certificate, will be issued. 

Udyog Aadhaar Memorandum - Online Verification process helps individuals figure whether the MSME’s are registered. With the help of the 12-digit UAM number, verification is possible through the https://udyamregistration.gov.in/UA/UA_VerifyUAM.aspx link.

How do I check if a Company is MSME Registered? 

MSME database is available on the website of Udyam registration. You can search if an entity is MSME registered or not by typing the name and product/activity of the MSME. The search yields result by activity/products manufactured. You can then further filter the search to find out of a specific company is MSME registered or not.

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Difference between Udyog and MSME registration

Udyog Aadhar is a government registration mechanism that provides the company with a registration certificate and a unique number known as Udyog Aadhar number. This programme is aimed specifically at small and medium-sized businesses. Udyog Aadhar aims to provide companies with the most access to government programs possible. However, on the other hand, The MSMED Act promotes a variety of schemes, subsidies, and benefits to support MSMEs, which are the backbone of the Indian economy. The MSME registration process is required to reap the benefit from governmental schemes, state schemes, and public services, although it is not obligatory. Further, The Udyog Aadhaar Memorandum Scheme, which the central government introduced, allows entities with an Aadhaar number, which is mandatory for MSMEs, to take advantage of easily accessible loans, credit, and government subsidies.

87% People found  Consultation with Lawyer very useful and quick about MSME Registration.

Why is MSME Registration Important? 

MSME Registration is important because: 

  • It identifies medium and small-scale industries and provides them with the assistance which they require to grow and develop. 

  • It provides tax benefits to MSMEs and SSI. 

  • It provides protection against non-payment of dues. 

  • Even individuals and sole proprietorships can obtain an MSME/SSI Registration and hence, it formalizes the business activities being carried at micro, medium and small scale.

The inception of this sector distinguishes medium enterprises and attempts to combine the three levels of these businesses, namely micro, small, and medium. This structure establishes a legislative consultative process at the national level, with a balanced representation of all stakeholders, especially the three types of businesses, and a broad range of advisory functions. Also, With the help of a policy structure and efficient steps taken by the government, the development of MSMEs in the Indian economy has seen tremendous growth and will continue to flourish at this rate of progress.

The Startup India Scheme
Startup

The Startup India Scheme

What is the Start-up India Scheme?

The start-up culture in India is booming. The recent news of Cred and Meesho becoming unicorns has spread a sense of positivity among the early-stage founders. The government of India, too, wants to capitalize on this high sentiment. To boost the further growth of start-ups, India's government started the Startup India Initiative on January 16, 2016. The start-up India initiative has three objectives: 

  • Create a uniform stage for the entire start-up ecosystem to come together. 

  • Facilitate and encourage entrepreneurship

  • Promoting entrepreneurship not only in metro cities but also in smaller regions of the country. 

Through this article, we shall explore the various aspects of the Start-up India scheme.

 

Who can Register in Start-Up India?

Eligibility for registering under the Start-up India Scheme depends upon the nature of the entity.  A Private Limited Company (Pvt. Ltd. Co.), a Partnership Firm under Section 59 of the Partnership Act, 1932, or a Limited Liability Partnership (LLPs) under the Limited Liability Partnership Act, 2008 can register under the Start-Up India scheme if they fulfill the below listed criteria:-

  • Not more than ten years should have passed since the date of business registration.

  • The entity's annual turnover for any financial year since its registration should not be more than INR 100 crores. 

  • The ais and objectives of the entity should be innovation and development. It should promote employment generation and wealth creation. 

  • Enterprise is not formed by splitting up or reconstructing an already existing business. 

  • Start-ups devising innovative solutions in sectors such as social impact, waste management, water management, etc. 

 

What is Startup India Registration?

Start-up India Registration Scheme is a flagship initiative of the Indian government to build a robust ecosystem for nurturing innovation and Start-ups in the country. The start-up registration process on the Start-up India platform involves a simple registration. Registering a profile on the start-up India hub is a relatively simple process. We can start by clicking on the "Register" tab on the top right-hand corner on the home page of the start-up India scheme, which will be directed to the "mygov" platform for authentication where the user will be asked to fill in details such as the name, email address, etc. This will give the user an OTP or a one-time password for verification and a link to set a new password. The user can then sign in using the login credentials he just created. This will direct him to the Hub to select and create the profile of a stakeholder that best defines his role.

You will need the following documents to register on the Start-up India hub: 

  • Certificate of incorporation/registration. 

  • PAN

  • Company details

  • Details of directors/partners

  • Pitch deck

  • Revenue model

Which Registration is Best for a Start-Up?

The most favored business structures for a start-up are Private Limited organizations and Limited Liability Partnerships ( LLPs ). A Private Limited organization has more credibility. Investors prefer putting their money in private companies, and the government too favours the setting up of such corporate structures. Limited Liability Partnerships are the next most-favoured structure chosen by the start-up founders. An LLP is a distinct entity, and the partners' liability is limited. It has lesser compliances than a private company, and hence, those founders who do not want to burden themselves with legalities opt for an LLP structure.

What are the benefits of the Start-Up India Scheme?

The Startup India Scheme provides various advantages to the start-ups registered under it. In any case, to avail these advantages, a firm should be set up by the Department for Industrial Policy and Promotion ( DPIIT ) as a start-up. 

Start-ups are permitted to self-declare their compliance with specific labour laws and environmental laws. This benefit of self-declaration is available for five years since the date of inclusion on the scheme. Start-ups are permitted three-year tax exclusion, as well as the best-licensed innovation administrations and assets exclusively working to assist start-ups so that it protects their intellectual property.

 

Can a Foreign Company Register Under the Startup India Hub?

Any entity that has its office registered in India can enlist itself on the Startup Scheme.  However, the scheme does not facilitate the registration of foreign-incorporated companies. If a foreign company has a subsidiary in India, such a subsidiary can register under the Startup Scheme, given it fulfills all the relevant criteria. 

For how long is a company recognized as a start-up?

Any business entity that has completed ten years from the date of its registration and has exceeded the previous years' turnover of 100 crores shall stop being recognized as a start-up under the Startup India Scheme on completion of 10 years from the date of its registration.

How do I know my registration is complete?

Once the application is complete and the start-up gets recognized, the applicant will receive a system-generated certificate of recognition. The applicants will also be able to download this certificate from the Startup India portal

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