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.
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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.
- Certificate of Incorporation / Registration Certificate and PAN
- Email ID and Mobile number
- Company Details (Industry, Sector, Category, Regd. Office Address, etc)
- Directors/Partners Details (Name, Photo, Gender, Mobile No. Email ID, Full Address)
- Details of Authorised Representative (Name, Designation, Mobile No. Email ID)
- A Brief about business and products/services and notes on innovations
- Revenue model and Uniqueness of the Product
- Pitch Deck
- 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.
- 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?