Startup India is a flagship initiative of the Government of India. The campaign was first announced by Prime Minister, Narendra Modi in his speech on August 15, 2015. The Startup India Initiative is a part of the action plan to realise the government’s aim to create a networking platform for accelerators, entrepreneurs, investors, incubators, government agencies and bodies, mentors and newfound companies. It will allow registered participants access to useful tools and resources free of cost and include them in various programs targeted at Startups. In addition to that, the scheme has also provided massive networking opportunities by means of startup festivals held by the Government of India both domestically and internationally. Through this scheme, the government is looking forward to driving sustainable economic development and enhanced employment opportunities in India.
Following are the list of things one must be aware of before initiating the application process:
- Business Structure
The following business structures may register for the benefits:
● A private limited company
● Registered Partnership Firm
● Limited liability partnership
upto a period of 10 years from the date of incorporation/registration provided that the turnover of the entity for any of the financial years since incorporation/ registration has not exceeded INR 100 crores and that the entity is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation. Provided that an entity is formed by splitting up or reconstruction of an existing business, it shall not be considered a startup
- Documentation
The company will need the Charter documents of the Company i.e. MOA and AOA, Certificate of Incorporation, Pitch deck of the Company, Link of the company website(optional), Intellectual Property Registration Certificates (if applicable), Proof of any funding received by the company (MCA records, capital structure of the company, bank statements etc), Aadhar card of the authorized signatory making application on behalf of the Company, Director details (DIN, PAN, Address, contact details), Company details (CIN, Address, authorized signatory details for the Company).
- Legal Compliance
The authorized signatory signing and making application on behalf of the Company needs to be authorized by the other director/s of the Company and the same needs to be authenticated by signing a Letter of Authorisation (in the format provided on the startup India portal).
- Process
● The Company needs to make a profile on the Startup India Portal. The registered email id will then receive an OTP and once that is confirmed the profile can be operated using the login credentials entered for registration.
● The User will have to complete the profile by adding the company specific details i.e. name of the company, CIN, the industry that the company operates, area of operation, stage of development the startup is currently at (ideation, validation early traction, scaling) etc
● The User will have to provide company specific responses to the questions basis which, at the discretion of the DPIIT, the application will be accepted/rejected or asked for clarification in case of any deficiency.
Questions on the portal:
a. Details of the innovation product/service or improvement in any existing product/service the Startup aims to create/provide
b. What is the problem that the startup aims to solve
c. How does your startup propose to solve this problem
d. What is the uniqueness of the solution provided by the startup.
e. How does startup generate revenue.
The DPIIT may, after calling for such documents or information and making such enquiries, as it may deem fit either recognise the eligible entity as Startup; or reject the application by providing reasons.
The Startup India is a one of its kind scheme and it has driven more and more entrepreneurs to start their own businesses, which in turn has resulted into creating a conducive environment for increased employment opportunities and has boosted entrepreneurship.
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