InvestorQ : What are the steps involved in floating your start-up and then to register it for the Start-Up India plan?
Rashi Mehra made post

What are the steps involved in floating your start-up and then to register it for the Start-Up India plan?

sarah Leo answered.
1 year ago

There are a few basic steps involved. Of course, you must start off with incorporating your business into a structured entity. Here are the key steps involved.

· First step is to incorporate your business. It could be as a Private Limited Company or a Partnership firm or a Limited Liability Partnership (LLP). Complete the basic formalities pertaining to obtaining certificate of Incorporation / Partnership deed registration, PAN and other requirements.

· The second step is to register with Start-up India, where it needs to be registered as a start-up. The entire process is simple and it is entirely online. Just log on to the Start-up India website and fill up the form with details of your business and upload basic documents. There are some basic criteria to fulfil.

· The third step is to upload documents in non-editable PDF format. This includes a letter of recommendation / support letter of recommendation must be submitted along with the registration form. The purpose of the letter is to prove beyond reasonable doubt that it is an eligible start-up. You also need to upload the certificate of incorporation / registration and brief description of business. The basic idea is to emphasize that the idea is innovative.

· The fourth step is to outline what tax benefits you want to avail. Start-ups are exempted from income tax for 3 years which must be certified by the Inter-Ministerial Board (IMB).

· Finally, the last step is to self-certify that you satisfy the basic conditions pertaining to structure of the entity formed as a start-up, meeting the mandates of business legacy and meeting the turnover criterion for being eligible (less than Rs.25 crore). You must also certify as to why the idea is innovative and its potential and confirm that it is not formed out of restructuring an existing business.

Once these steps are completed, you are immediately allotted the Recognition Number for your start-up. The final certificate of recognition will be issued after the examination of all your documents.