What is the Startup India Scheme?
Launched on January 16, 2016, by the Government of India, the Startup India Scheme is a flagship initiative designed to foster innovation, drive sustainable economic growth, and generate large-scale employment opportunities by promoting startups and entrepreneurship nationwide. The scheme aims to create a robust ecosystem that nurtures startups and encourages innovation by providing various support measures, including financial assistance, incubation, and industry-academia partnerships.
Purpose of the Startup India Scheme
The primary objective of the Startup India Scheme is to build a strong ecosystem conducive to the growth of startup businesses, to drive sustainable economic development, and to generate large-scale employment opportunities. By supporting startups, the scheme aims to:
Promote Innovation:
Foster a culture of creativity and entrepreneurship.
Support innovative solutions to societal and industrial problems.
Enhance the competitiveness of Indian businesses globally.
Create Jobs:
Generate large-scale employment opportunities, especially for youth.
Ensure inclusive growth across various regions and sectors.
Promote skill development and entrepreneurial capabilities.
Facilitate Funding:
Improve access to financial resources for startups.
Encourage private investment and venture capital.
Provide financial incentives like tax exemptions and subsidies.
Ease Regulatory Framework:
Simplify procedures for starting and operating businesses.
Reduce compliance burden through self-certification and fewer inspections.
Develop supportive policies for startup growth and sustainability.
Strengthen Incubation and Mentorship:
Enhance support systems through incubation centers and accelerators.
Provide access to mentorship programs and industry experts.
Facilitate resource sharing, knowledge exchange, and infrastructure access.
Features and Benefits of the Startup India Scheme
The Startup India Scheme offers a plethora of features and benefits designed to support startups throughout their lifecycle. Key features and benefits include:
Startup India Registration: Startups can register under the scheme to avail of various benefits. The registration process is straightforward and can be completed online.
Startup India Certificate: Upon successful registration, startups receive a Startup India Certificate, which qualifies them for various incentives and benefits.
Tax Benefits: Startups registered under the scheme can avail of income tax exemption for three consecutive financial years out of their first ten years since incorporation. Additionally, they are exempt from capital gains tax on investments made in eligible startups.
Easier Compliance: The scheme offers simplified compliance procedures, including self-certification under labor and environmental laws.
Funding Support: The Government has established a Fund of Funds for Startups (FFS) with a corpus of INR 10,000 crore to provide equity funding support.
Government Tenders: Startups are given priority in government tenders and are exempt from the criteria of prior turnover and experience.
Incubation and Mentorship: The scheme provides support for incubation and mentorship through a network of incubators and accelerators.
Intellectual Property Rights (IPR) Support: Startups can avail of benefits such as fast-tracking of patent applications and reduced fees for IP services.
Research and Development Facilities: Startups have access to a range of research and development facilities and laboratories.
Networking Opportunities: The scheme facilitates networking opportunities through various events, conferences, and workshops.
Types of Organizations Eligible to Apply for Startup India Registration
To be eligible for Startup India registration, an organization must meet the following criteria:
Type of Entity: The entity must be a Private Limited Company, a Registered Partnership Firm, or a Limited Liability Partnership (LLP).
Age of the Company: The entity must be less than ten years old from the date of its incorporation/registration.
Annual Turnover: The entity's annual turnover must not exceed INR 100 crore for any of the financial years since its incorporation.
Innovation: The entity must be working towards innovation, development, or improvement of products, processes, or services, or it must have a scalable business model with a high potential for employment generation or wealth creation.
Original Entity: The entity should not have been formed by splitting up or reconstructing an already existing business.
How to Apply for the Startup India Scheme Online?
Registering a startup under the Startup India Scheme is a systematic process designed to be accessible and straightforward. Here’s a detailed guide on how to navigate the registration process:
Step 1: Incorporate Your Business
Before applying for the Startup India Scheme, ensure that your business is legally incorporated. Your business must be structured as one of the following entities:
Private Limited Company (PLC)
Registered Partnership Firm
Limited Liability Partnership (LLP)
The incorporation of your business should comply with the regulatory requirements specified by the Ministry of Corporate Affairs (MCA) for PLCs and LLPs or by the Registrar of Firms for partnership firms.
Step 2: Create a Profile on the Startup India Portal
Visit the Startup India Portal: Go to the official Startup India website at
Sign Up: Click on the “Register” button to create a new account. You will need to provide your name, email address, and mobile number, and create a password.
Verify Your Account: After registering, you will receive a verification email. Click the verification link to activate your account.
Login to Your Account: Use your email and password to log in to the Startup India portal.
Step 3: Apply for DPIIT Recognition
To avail of the benefits of the Startup India Scheme, your startup needs to be recognized by the Department for Promotion of Industry and Internal Trade (DPIIT).
Access DPIIT Recognition Application: Once logged in, navigate to the “DPIIT Recognition” section.
Fill Out the Application Form:
Startup Details: Provide basic details about your startup, including the name, incorporation date, type of entity, industry, sector, and office address.
Authorized Representative Details: Enter details of the person authorized to act on behalf of the startup.
Directors/Partners Details: Provide information about the directors or partners of the startup.
Brief Description: Write a brief description of your business, highlighting the problem you are solving and your innovative solution.
Fund Status: Mention any funding received, if applicable.
Awards and Recognition: List any awards or recognitions received by your startup.
3. Upload Documents:
Certificate of Incorporation/Registration: Upload the incorporation or registration certificate of your business.
Description of Business: Upload a brief document describing your business model, products, or services.
Director Identification Number (DIN), if applicable: Upload a copy of the DIN for all directors.
Patent and Trademark Details, if any: Provide details of any intellectual property owned by the startup.
4. Self-Certification: Certify that you meet the criteria for startup recognition and comply with the definition of a startup as per the scheme guidelines.
5. Submit the Application: Review all the details and documents provided. Once satisfied, apply.
Step 4: Await DPIIT Recognition
After submission, your application will be reviewed by DPIIT. The review process typically includes:
Verification of Documents: DPIIT will verify the documents and information provided in your application.
Clarifications and Queries: If required, DPIIT may seek additional information or clarifications.
Approval: Upon successful verification and review, DPIIT will approve your application.
Step 5: Receive the Startup India Certificate
Once approved, your startup will receive a DPIIT recognition certificate, also known as the Startup India Certificate. This certificate serves as proof of recognition and qualifies your startup for various benefits under the Startup India Scheme.
Action Plan for Start-ups in India
The Government of India has laid out an extensive action plan to support startups through the Startup India Scheme. Key components of the action plan include:
Simplification and Handholding:
Self-certification compliance.
Startup India Hub as a single point of contact.
Rolling out of a mobile app and portal.
2. Funding Support and Incentives:
Establishment of the Fund of Funds for Startups (FFS).
Credit guarantee fund for startups.
Tax exemption for three years and on investments above Fair Market Value.
3. Industry-Academia Partnership and Incubation:
Setting up startup incubators and research parks.
Launch of innovation-focused programs for students.
Annual incubator grand challenge to select the best incubators.
4. Fostering Innovation:
Organizing Startup fests for showcasing innovation.
Launch of Atal Innovation Mission with Self-Employment and Talent Utilization (SETU) programs.
5. International Engagement:
Facilitating international partnerships and exchange programs.
Engaging with global startup ecosystems.
FAQs
1. Who is eligible for Startup India registration? Private Limited Companies, Registered Partnership Firms, or LLPs, less than ten years old, with annual turnover under INR 100 crore.
2. How can I register my startup under the Startup India Scheme? Incorporate your business, create a profile on the Startup India portal, apply for DPIIT recognition, and receive your Startup India Certificate.
3. What is the Fund of Funds for Startups (FFS)? It is a government initiative with a corpus of INR 10,000 crore to provide equity funding support for startups.
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