Who Can Apply For Startup Registration?

Who can apply for startup registration? Meeting the eligibility criteria is the first step in registering a startup. Find out who’s eligible and what you need.

Starting a business is always exciting. You feel positive about everything from your plans to goals, and you can’t wait to get started.

If you want to run a legally recognized business in India, you must register your business.

This is usually the point where startup owners feel confused.

It’s not easy to go through all the legal requirements for company registration in Chennai because of the unclear rules and endless paperwork.

But there are easier ways to get your business registered and operate within the law.

One easy way is to walk with a firm like Virtual Auditor. This tech-driven firm helps startups with registering their businesses and handling the compliance and regulatory aspects of it.

We give the best advice for fundraising and business modeling. We also offer startup valuations and virtual CFO services.

In this blog, we’ll show you who can apply for startup registration and what is involved.

But first, we’ll explain what Startup India is and why it’s important.

Table of Contents

What is Startup India?

The Startup India Initiative was established by the Government of India on January 16, 2016.

The Startup India scheme’s goal is to encourage entrepreneurship and innovation across the country.

The idea behind the program is to support young founders and new businesses financially, and everything that has to do with regulatory requirements.

This initiative is run by the Department for Promotion of Industry and Internal Trade (DPIIT) to give startups some benefits.

Through the program, businesses can enjoy tax benefits, help with patents, access to funding, and easier paperwork.

So, the initiative is beneficial for new businesses as it helps them to thrive in a market where they’d ordinarily have no chance.

Why is Startup India Registration Important?

If you’re starting a business in India, you should go through the Startup India registration process.

This isn’t just a formality. It can change your whole experience.

As we mentioned earlier, you can get access to funding, IPR help, reduced compliance issues, and tax benefits.

These Startup India registration benefits are real and powerful.

We’ll talk about the benefits clearly as we go on. This way, you can know exactly how it impacts your finances and daily operations.

If you truly want your business to grow, it’s smart to get your business registered as the first step to take.

Who Can Apply For Startup Registration? Eligibility Criteria

Before we get into the startup registration Chennai process, you must first understand the requirements that make you eligible for the Startup India program.

Even though it’s quite easy to qualify, here are a few conditions you must meet:

Business Structure: Only businesses that are a Private Limited Company, Limited Liability Company, Limited Liability Partnership (LLP), or a Partnership Firm qualify to register under the scheme. Any other form of business structure, like a Sole proprietorship, isn’t eligible.
Age Limit: This is one of the major requirements in the scheme. The business must not be more than 10 years old from when it was incorporated or registered.
Annual Turnover: Your existing business should have a yearly turnover of at least ₹100 crores in any of the previous financial years since incorporation.
Innovative Product or Service: Your business must improve or innovate a product, service, or process. Or it should be a scalable model that can generate jobs and wealth. This is a must for DPIIT to issue your Startup India registration certificate.
DPIIT Recognition: You must apply for DPIIT recognition on the Startup India website to be eligible for the different benefits under the initiative. Once approved, your startup will be officially recognised.
Original Entity: Only original business entities are eligible for the Startup India portal registration. This means that if your business entity was formed by splitting or restructuring another business, it won’t be registered.

Startup India Registration: The Benefits

Assuming your Private Limited Company registration Chennai is successful, there are amazing benefits that come with being a part of the Startup India initiative.

The benefits will help you grow your startup well without spending much on operational challenges.

Here are the benefits:

1. Financial Benefits

Tax Exemptions: Startups that qualify can get a 3-year break from paying income tax under Section 80-IAC of the Income Tax Act. They can choose any 3 years in a row within the first 10 years after starting their company. But to get this benefit, they need special approval from the Inter-Ministerial Board (IMB).
Funding and Grants: The Government of India started the Fund of Funds for Startups (FFS) with ₹10,000 crore. This fund is handled by SIDBI and puts money into SEBI-registered Alternative Investment Funds (AIFs). These AIFs then invest in startups. So, startups don’t get money straight from the government.

2. Easy Compliance

India is known for complex business regulations, but when you register with Startup India, they’ll help you skip the strenuous process.

Once registered under the scheme, you’ll get a self-certification for complying with labor and environmental laws. So, there will be no need for regular inspections and paperwork.

3. Intellectual Property (IP) Benefits

IP Fast-Tracking: It’s important for any tech-driven startup to secure patents, trademarks, or copyrights. The Startup India program makes the inspection of your patent applications fast.
Fee Discounts: Startups recognized by DPIIT get an 80% discount on patent filing fees and a 50% discount on trademark filing fees. This makes IP protection more affordable.

4. Opportunity to Network and be Mentored

With their startup hub, you will get connected with investors, mentors, and other entrepreneurs.

From this network, you’ll get support through strategic advice, partnerships, or funding that will help you grow your business.

Conclusion

So, who can apply for startup registration basically depends on whether you meet the Startup India Initiative’s requirements.

As a serious founder, getting recognized under the scheme is a strategic move.

You get to enjoy benefits like tax exemptions, easy compliance, funding opportunities, and quick approvals.

Ensuring your startup meets the eligibility requirements for registration will align your business with the national startup policy and secure the government’s backing it needs to scale.

So, for assistance to get started with the registration process, you can reach out to us to help you get registered.

This way, we can let you focus on your business while we do the registration for you.

With our experience, we can get it all sorted. Our customer support is available 24/7. Learn more about us here.