We at LeanFlo get a lot of queries from Startups on how to get their company registered under StartUp India Program and avail all the benefits offered by the Govt. of India.
Under the StartUp India Program, it is clearly mentioned that any company or legal entity that wishes to avail the benefits of this policy must be either registered as a Private Limited Company, a One-person company, a Limited liability Partnership or a Registered Partnership.
This means that proprietors and unregistered partnerships will not qualify for the benefits under StartUp India.
Once you get your company registered in any of the above-mentioned structures, a couple of things need to be taken care of.
1) Your company must be less than five years old.
2) The turnover of the said company in any year should not have exceeded Rs. 25 crore.
3) The company should be working towards innovation, development, commercialization of new products or services driven by technology or intellectual property. However, any such entity formed by splitting up an earlier company or restructuring it will not be considered a ‘startup’.
The aforementioned set of requirements needs to be fulfilled by the entity while they’re filling up the Startup India form.
Next steps and necessary conditions:
1. A startup that fulfils the conditions mentioned above must also get a certificate of being an eligible business from the Inter-Ministerial Board of Certification. Now, the Inter-Ministerial Board may consist of joint secretary of the department of industrial policy and promotion, representative of the department of science and technology, a representative of he department of biotechnology.
2. A recommendation, with regards to the innovative nature of the business, in a format specified by the department of industrial policy and promotion, from any incubator established in post-graduate college in India; or a letter of support from an incubator which is funded by the central or state government as part of a specified scheme to promote innovation.
3. A letter of funding of not less than 20% in equity by an incubation fund/agent fund/private equity fund/accelerator/angel network that is duly registered with the securities and exchange board of India (SEBI) which endorses innovation.
4. 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;
5. A letter of funding by the central or state government as part of any specific scheme to promote innovation.
6. A patent filed and also published in the India Patent Office’s journal in areas affiliated with the business that is being promoted.
Once you’re done with all the above, move to fill the application form.
For additional information and arranging a discussion with our experts, please feel free to mail us at email@example.com
LeanFlo Inc. will also help you with registration of your company and preparing the required documents.