Government of India has initiated “Start Up India” drive on January 16, 2016 and under the start up India initiative they offer many benefits to new entrepreneur who are passionate about their dream and determined to follow their dream against all odds. Start Up India will provide them great run way to take off their dram to new heights.
So let us first help you as an Entrepreneur, is your entity Eligible as Startup for DPIIT Recognition? Below are the criteria for availing DPIIT recognition. Let’s consider you are Founder of an Ed-Tech and have incorporated LLP in May, 2020 and have not yet achieved break-even. Let’s evaluate
| Criteria for DPIIT recognition | Is Ed-tech fits the criteria | |||||
| Proprieto-rship | Partnership (not registered) | Partnership (registered) | LLP | Private Limited Company | ||
| Type of Company eligible to be Registered | – | – | √ | √ | √ | LLP |
| No. of year of existence | – | – | Less than 10 years from date of Incorporation. E.g. As on January 1, 2021, to be considered as eligible entity, entity should be incorporated on or after January 1, 2011 | Less than 10 yr | ||
| Turnover | – | – | Not to exceed 100 crores in any financial years from date of incorporation # In case it exceeds turnover criteria before 10 years, it shall cease to be startup during the year it exceeds this limit | Less than 100 crores | ||
| Innovative & Scalable | Innovative contributing to the improvement in the existing product or services and/or have scalable business model with high potential for creation of wealth and employment | Fulfills criteria 2 & 3 | ||||
| Originality | An entity should not be formed by splitting up or reconstruction of an existing business. | New co. |
DIY process are engaging, cost effective and offers great satisfaction. Startup India portal also offers 7 DO IT Yourself (DIY) steps for recognition of your Startup on https://www.startupindia.gov.in/content/sih/en/recognition-page.html by the entrepreneur themselves without any additional investment.
Under Start-up India Scheme, Government of India offers following benefits:
- Self- Certification of Compliance for 6 Labour laws and 3 environmental laws
- Fast track of Start-up Patent application, 80% rebate on filing of patent application, government to bear the facilitation cost for patent, trademark, design startup file through facilitators
- Tax exemption under 80IAC- Exemption from paying income tax for 3 consecutive financial year out of the first ten years since incorporation
- Section 56 Exemption- exemption to listed company, accredited investor on investment in eligible startup
- Easy winding up of the company
- Easier Public Procurement Norms
- Opportunity to list your own product on Government e-Market place
- Exemption from Prior Experience/Turnover
- EMD Exemption
- Network of mentors
- Network of Incubators
- Network of your community
As start-ups are going to contribute to 5 trillion economy, under Start-up India portal there are many Probono offering towards Cloud services, Management and Enterprise Software, Legal Support, Financial services, Business services
So now let’s focus on 7 DIY steps :
1. Entity Details
2. Full Address (Office)
3. Authorized Representative Details
4. Director’s /Partner’s Details
5. Information required (like Stage at which start-up is, IPR details, Is start-up is into Innovation or Improvement of existing product/service, Brief Note on Innovation of product/service or improvement of existing product or service)
6. Startup Activities
- What is the problem the startup is solving
- How does your startup propose to solve this problem
- What is the Uniqueness of your solution
- How does your startup generate revenue
7. Self certification
- Incorporation certification (Mandatory)
- Website Link
- Pitch Deck
- Videos, if any
- Events, if any
So the Key for obtaining recognition is point 6 i.e. what is your USP, what problem you are solving, what solution you are offering and point 7- Pitch Deck along with Website Details.
On completion of the form in all respects, you receive certificate in maximum 3-5 days on your registered email id. Isn’t it really cool. As we will be celebrating 5th Anniversary of Start-up India Initiative on January 16, 2021, initiate the “Pratham” step to Ace your Start-up Journey with DPIIT Recognition in January 2021 itself. This is first step for claiming income tax exemption and avail other benefits.
So at AAKEN, we act as catalyst and spread awareness about Government Schemes which can be availed by Startups free of cost.