1. What qualifies as a “Startup” for the purpose of Government schemes?
An entity (Private Limited Company or Registered Partnership Firm or Limited Liability Partnership) shall be considered a “Startup” –
a) Upto 5 years from the date of its incorporation/ registration, and
b) If its turnover for any of the financial years has not exceeded INR 25 crore, and
c) It is working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
The entity should not have been formed by splitting up or reconstruction of a business already in existence.
A proprietorship or a public limited company is not eligible as startup. A one person company, being a private limited company is entitled to be recognized as a ‘startup’.For additional information, refer notification G.S.R. 180(E) dated February 17, 2016.
2. How does a Startup obtain benefits under various Government schemes including the ones announced in the Action Plan on January 16, 2016?
For availing various benefits (except tax and IPR related benefits i.e. action points #4, #9, #10 and #11 of the Startup India Action Plan), an entity would be required to be recognized as a Startup by applying on Startup India Mobile App/ Portal.
In order to obtain tax and IPR related benefits, a Startup shall be required to be certified as an eligible business from the Inter-Ministerial Board of Certification.
3. For how long would recognition as a “Startup” be valid?
An entity would cease to be a ‘startup’ upon expiry of:
a) 5 years from the date of its incorporation/ registration, OR
b) If its turnover for any of the financial years has exceeded INR 25 crore; OR
Startups would be required to intimate DIPP of any such cases within a period of 21 days.
4. Can an existing entity register itself as a “Startup” on the Startup India Portal and Mobile App?
Yes, an existing entity that meets the criteria as indicated in response to Question 1 can visit the Startup India Portal and Mobile App and get itself recognized for various benefits. The tax benefits proposed under the Finance Bill 2016 will be available from 01-04-2016.
5. What is the timeframe for obtaining certificate of recognition as a “Startup” in case an entity already exists?
The process of registration in such cases shall be real time and the certificate of recognition would be issued immediately upon successful submission of the application.
6. Do you help with Startup India registration?
Yes, we assist with application. The grant of registration depends on the government approval. The registration is not guaranteed.
7. What are your fees to assist in Startup India registration?
Our professional fees is Rs 5000 for application irrespective whether its approved or not.
8. What is government fees for the startup India registration?
There is no fees for the same.
9. Can a foreign subsidiary be registered under Startup India Scheme?
No, a foreign subsidiary cannot registered under startup India scheme. But a company with foreign shareholders and directors can be registered under startup India scheme.