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India is considered the world’s third largest startup ecosystem, according to the Economic Survey 2021-22 released by the Indian Government in January 2023. According to the report of Rajya Sabha in March 2022, Commerce and Industry Minister Piyush Goyal said there are more than 65,000 government-recognized Startups under Startup India Programme.
With the increasing popularity of startups in India, the Government of India in 2016 constituted Startup India Scheme. Startup India is seen as an initiative to support entrepreneurs and strengthen the already growing startup ecosystem. This scheme also focuses on providing a lot of benefits to registered Startups under the Startup India Program.
Under this, the Government focuses on the objective of helping entrepreneurs by simplifying starting a business, access to funds, and streamlining other growth factors that are especially relevant for early-stage companies.
In orders to avail maximum benefits of startups; the businesses must also be included under the category. It requires businesses to become a part of Startup India as an initiative so that they can reap the maximum benefits.
We Have Listed Major Benefits A Business Gets when Registered as Startup in India
What Is A Startup In India?
The primary thing to understand about startups is to get into the procedure and documentation. Startups are mainly small to middle-level businesses that help facilitate innovative products or services to solve existing problems in the market.
The uses of these products and services determine the scalability and profit margins. Generally, the profit margins are recorded as low with higher operational costs. Hence, the Government provides financial benefits to these companies at the time of incubation.
Startup registration is mandatory for startup companies so that the benefits of tax cuts and incentives can be taken. But have you ever wondered how you could identify whether a company is a startup or not?
Reading Suggestion – Eligibility Criteria for Startup India Registration
Register Your Business as Startup Today!
Benefits of Registering Your Business as Startup in India
#1. Tax Exemption For Registered Startups in India
The startups which are recognized by the DPIIT are entitled to an exemption of 100% income tax under Section 80-IAC (Deduction in respect of specified Business) of the Income Tax Act, 1961, for three years out of 10 years. Since the entity’s incorporation/registration, subject to certain conditions as notified by the Government from time to time.
#2. Access To The Government Marketplace By Registering Startup In India
Government e-Marketplace (GeM) is a web-based portal or is one of the prominent markets for Government Departments to procure services and products. DPIIT Recognized & Registered Startups are allowed to make utilization of such platforms so that they can sell their offerings to government-based entities. This opens a door of opportunities for startups looking to work on trial orders with the Government.
#3. Fast Track Exit Option/ Winding -Up In Startup India Registration
The Startups are also known as “fast-track firms”, which is according to the Ministry of Corporate Affairs. Ministry of Corporate Affairs grants permission, which enables the Startups to wind up their operations within a period of 90 days.
#4. Relaxation in Public Procurement Regulations
Notably, ordinarily whenever a tender is floated by a Government entity or Public Sector is undertaking, the eligibility criteria only call for entities that have prior experience or prior turnover. This restricts startups from participating in the bidding of tenders.
#5. Intellectual Property Rights in Startup India Registration
For the promotion of the startups and recognition of the business models, Startup India provides new startups with a few intellectual property rights benefits, which are stated as follows:
- The patent application applied by a startup is fast-tracked for examination.
- Entitlement of rebate up to 80% as compared to other entities in the process of filing patents.
- Entitlement of a rebate of 50% in the trademark filing process.
- The Central Government bears all the costs for startups.
If you have not yet started with Business Registration – Click Here
Don't Skip the Benefits Provided to Startup
Since you are aware of the major benefits of a business registering as a Startup in India. You can check with your compliance team for eligibility & apply for a Startup India Programme today. Click Here to Register for Startup India Programme. It is advisable to take expert guidance before applying for registration because sometimes even though you have Unique Selling Proportions (USPs), the application for Startup Registration can be denied. So, it is better to present it well. Go ahead with experts!!!
