With the marked increase in the creation of new and creative companies, the emergence of a start-up concept is no longer a far-fetched idea. Technological advancement mixed with the aspirations of the youth has led to India being referred to as the poster child of emerging markets.
Start-ups are recognized as catalysts for growth and job creation, and seen as drivers of a country’s social and economic development. The Government of India has also been quite passionate about promoting the start-up culture and has come up with various schemes and platforms for the proper functioning of these organizations.
What are the eligibility criteria for DPIIT Certificate of Recognition for Start-up India Scheme?
The eligibility criteria for DPIIT Certificate of Recognition for Start-up India Scheme are as follows:
- Period of existence of the entity: The period of operation and existence of the company should not exceed 10 years from the date of incorporation.
- Original Entity: In order to obtain a DPIIT Recognition Certificate, the company must not have been created through division or reconstruction of a pre-existing entity.
- Entity Type: DPIIT Certificate of Recognition is granted to a company registered as a private limited liability company, limited partnership (LLP), or civil partnership.
- The entity must have a scalable business model with great potential to generate wealth and employment. A company must have the potential to create jobs or generate wealth.
- Annual Turnover: To get the DPIIT Recognition Certificate, the annual turnover of the company must be Rs. 100 million for every fiscal year since federation
- Innovative and Scalable Entity: The entity must strive to create or improve a product, process or service.
What are the documents required for DPIIT Certificate of Recognition for Start-up India Scheme?
The documents required for DPIIT Certificate of Recognition for Start-up India Scheme are as follows:
- Certificate of incorporation or registration of a company
- Document of awards or recognition received by the subject
- Patent document published by the entity (patent must be published in patent journals)
- If the start-up has received funding, proof of funding must be submitted to DPIIT to obtain the Start-up Recognition Certificate.
- A letter of support from central or state government agencies or an incubator duly accredited by the Government of India can be submitted.
- The funding document must not be less than 20% equity of angel funds or incubation funds
What is the process of DPIIT Certificate of Recognition for Start-up India Scheme?
The process of DPIIT Certificate of Recognition for Start-up India Scheme is as follows:
- Incorporation of the business
The business is required to be incorporated as a Private Limited Company or Limited Liability partnership or Partnership Firm.
- Registration of business with Start-up India Scheme
The business should be registered with Start-up India Scheme for the purpose of DPIIT Recognition.
- Applying for Start-up Recognition
For an entity to start a DPIIT Recognition the registration with Start-up India Scheme is required and later the below steps are to be followed which are as mentioned below:
- Register for Start-up Recognition
- Provide the details associated with the following:
- Details of Entity
- Address of Entity
- Authorised Representative Details
- Details of Partners or Directors
- Detail of funding
After providing all above details the required documents are uploaded.
Issue of Start-up recognition Number
After proper examination by the concerned authorities the DPIIT Certificate of recognition will be issued.
Benefits of DPIIT Certificate of Recognition for Start-up India Scheme
The benefits are as follows:
- DPIIT recognized start-ups are only required to pay 80% of patent, trademark, copyright and design fees, and start-ups are given the opportunity to accelerate the patent application process.
- Start-up India has created a platform that offers equal opportunities to both start-ups and experienced entrepreneurs. Now public procurement standards have been relaxed for start-ups. This makes it easier for them to participate in government contracts.
- An exemplary move of the Startup India scheme is that startups registered under the scheme are tax exempt. The exemption is granted for the first three years. Any investment of incubators with a value higher than the market price is tax-free.
- To reduce legal obligations in the first year of operation, start-ups are allowed to self-certify that they comply with certain labor and environmental laws. In this case, the inspection will not be carried out for three years.
- One of the main advantages of this scheme is the ease of registration. Eligible companies have the option to register with a single form and complete all formalities. This can also be done through the Startup India Mobile Application.
- One of the biggest advantages of this platform is the networking capabilities it offers. Startups have many opportunities to connect with different stakeholders that help them build a strong network. This increases their financing resources and helps them to have various tangible and intangible resources.
Start-up India is a flagship plan of the Government of India. It aims to create a robust ecosystem that fosters start-ups and their innovative products. In this case, the long-term objectives of employment and wealth creation are pursued. DPIIT recognition is essential for Indian start-ups to take advantage of the benefits of the Start-up India initiative, such as tax breaks, IPR concessions, and reduced compliance.