What is the procedure to register in the Startup India Scheme?

India’s government created the Startup India Scheme to help new businesses grow. It offers numerous benefits, including tax savings and simpler rules. But many entrepreneurs, especially from other countries, find the registration process confusing.

This guide breaks down the procedure into simple steps. Think of it as your roadmap to getting these valuable benefits.

First, Check If Your Business Qualifies

Not every new company is a “Startup” under this scheme. Your business must meet these conditions:

  • Business Type: It should be a Private Limited Company, a Partnership, or a Limited Liability Partnership (LLP).
  • Business Age: Your business must be less than 10 years old from the date it was registered.
  • Annual Turnover: Your yearly revenue should not have exceeded ₹100 crore in any financial year since you started.
  • Innovation: Your business must be working on a new idea, product, or service. It should not just be copying an existing business model.

If you meet these points, you are ready to start the registration process.

The Step-by-Step Registration Process

The entire process is done online. Here is how it works:

Step 1: Incorporate Your Business

You must first legally set up your business in India. The most common and recommended way is to register as a Private Limited Company or an LLP. This itself involves steps like getting director IDs and filing forms with the Ministry of Corporate Affairs.

Our Role at Indusentry: This is where we start helping most of our international clients. We handle the entire incorporation process for you, making sure it’s done right the first time.*

Step 2: Create a Profile on the Startup India Website

Go to the official [Startup India website](https://www.startupindia.gov.in/). Click on ‘Register’ and fill in your details to create a user profile for your business.

Step 3: Fill the ‘Startup Recognition’ Form

After logging in, find the option for ‘Startup Recognition’. You will need to fill out a detailed form with information about your business. Have these documents ready:

  1. Your business’s registration certificate (from Step 1).
  2. A short note explaining how your business is innovative.
  3. Your website link (if you have one).
  4. Details of your directors/partners.

Step 4: Upload Your Documents

You need to provide supporting documents. The most important one is a recommendation letter.

Recommendation Letter: You need a letter from either:

  1. A funded incubator, or
  2. A patent holder, or
  3. An Indian government department.

This letter supports your claim that your business is innovative.

Step 5: Self-Certify Your Details

You will need to confirm a few things yourself:

  1. That your business is truly innovative.
  2. It meets the definition of a startup.
  3. That you haven’t been formed by splitting up an existing business.

Step 6: Submit and Receive Your Number

Once you submit the form, you will get an email confirmation. The government will review your application. If everything is in order, you will receive a Certificate of Recognition with a unique startup recognition number. This is your proof that you are part of the scheme.

What Happens After You Are Recognized?

Congratulations! Now you can access the benefits. The two biggest advantages are:

  1. Tax Exemption: You can apply for a tax holiday. This means you won’t pay income tax for any three years in your first ten years. You need to get a certificate from the Inter-Ministerial Board (IMB) for this.
  2. Easier Compliance: Your business gets protection from strict inspections and simpler rules for closing down if needed.

Why This Process Can Be Hard for International Founders

The steps seem clear, but the devil is in the details. The biggest challenges are:

Incorporating Business First: The entire Startup India application depends on your Indian business entity already being set up. This process is complex for foreign nationals and requires local knowledge.

The Recommendation Letter: Finding a recognized incubator or understanding what qualifies as a valid “innovation” can be difficult from overseas.

Ongoing Compliance: After you get the recognition, you still need to follow all Indian business laws, like GST filing and annual returns.

How Indusentry Makes This Easy for You

You don’t have to figure this out alone. We act as your local partner.

  1. We Set Up Your Business: We handle the entire legal process of incorporating your Private Limited Company or LLP in India.
  2. We Guide Your Application: We help you prepare a strong application and advise you on how to secure the necessary recommendation.
  3. We Manage the Paperwork: We ensure your registration and tax exemption applications are filed correctly and on time.
  4. We Handle Compliance: We take care of your GST, taxes, and annual filings so you can focus on building your business.

The Startup India Scheme is a powerful tool. Let us help you use it to its full potential.

Want to register without the stress? Contact Indusentry today. We’ll handle the paperwork, so you can focus on your big idea.