What is a Startup?
In simple terms, a startup is a new business founded by a relatively smaller number of entrepreneurs to develop a unique service or product and bring it to the market. The business generally involves an innovative solution to the consumer thirst.
With an evident increase in setting up new and creative businesses, the emergence of the concept of a startup is no more a distant idea. The technological advancement blended with the aspirations of the youth has led India to be called the poster child of emerging markets. To support the newly registered Private Limited Companies/ LLPs / Registered Partnerships, the Govt introduced the Startup India Recognition Certificate to consider them formally as a Startup and help them avail various benefits to rank India with the Global Startup Ecosystem.
Benefits of Startup Registration
The introduction of Startup India Initiative by the Government of India is a major milestone in the corporate and economic regime of the nation. The benefits that the initiative seeks to offer are quite interesting and surely, attractive for potential entrepreneurs. The goals of Startup India is the development and innovation of products and services. It also seeks to increase the employment rate in India and develop an ecosystem that promotes entrepreneurial spirit.
Benefits of Startup India Scheme
1. Self-Certification: To reduce regulatory liabilities in their initial years of operation, startups are allowed to self-certify compliance with some labour and environmental laws. In such a case, no inspection will be conducted for three years.
Exemption for Angel Investors
Many startups receive their funding from angel investors during a year and thus, the Income Tax department has now granted 100% exemption on the investments that are made in the start-ups above the fair market value to the following:
ii) or the average returned income of more than INR 25 lakhs in the previous 3 financial years.
3. Single Window Clearance from Mobile App: One of the most essential benefits offered under this scheme is the ease of registration. The eligible companies have an option to register themselves through a single form and complete all the formalities. This can also be done through Startup India Mobile Application.
5. Relaxed norms for Public Procurement: Startup India has created a platform to grant equal opportunities for both startups and experienced entrepreneurs. Now, public procurement norms have been relaxed for startups. Thereby making it easy for them to go for public procurement.
7. Network Opportunities: One of the greatest benefits of this platform is the networking opportunities that it offers. The startups get a plethora of opportunities to connect with various stakeholders which help them develop a strong network. It increases their mediums of funding and other help them have various tangible and intangible resources.
9. Faster Exit: Registering with the Startup India Scheme provides easy accessibility for winding up of companies.
