How To Start A Startup In India? A Complete Guide [2021]: A STARTUP can be a company, which involves Innovation, development in a business of new products or services. Basically, a startup is an idea that depends on the requirements or needs of the public.
In simple words, A startup is a solution or innovation or a platform that is useful for society.
To start a startup you need:
- IDEA
- Team.
- Implementation.
- Funds.
- Manpower.
- Dedication.
- Marketing.
There are many ideas, but the unique idea is the one which involves INNOVATION and DEVELOPMENT, which is useful to society and gives the growth.
It should be long term. You need a dedicated team who works and gives their best to implement the idea through technology.
You need to have minimum funds before getting the product into the market.
Marketing, your growth depends on how you actually market your product.
You should show customers how useful your product is in a very unique way. How you present your product is how you represent your STARTUP.
Now you know, what startup is and what all you need. You also want to know how to start a startup in INDIA? Let’s get started.
How To Start A Startup In India
One of the great ways, to start is START INDIA, which is launched by govt of INDIA, to recognize the young entrepreneurs and also for the development of the nation.
STARTUP INDIA
The government of INDIA has started a campaign, STARTUP INDIA. This campaign is announced by our beloved Prime Minister, Narendra Modi on 15th August 2015.
This campaign has started to recognize and promote the young minds and entrepreneurs, and also to bring innovation in INDIA.
Registration of the startup can be done only when the startup is under Partnership Firm, or Private Limited Company or Limited Liability Partnership Firm.
The main aim of Startup INDIA is to create more jobs for unemployment. Almost 15,000+ startups have been recognized under this scheme.
Over 1,00,000+ jobs have been created by the recognized startup.
killerlaunch.com will be providing Startup jobs in INDIA.
BENEFITS OF STARTUP INDIA
- Government Tenders.
- Registration Benefits.
- Funds.
- Networking.
- Income Tax Benefits.
GOVERNMENT TENDERS
A tender is an offer to purchase some or all of the shareholders’ shares. The shares purchased in the tender become the property of the purchaser, which means the purchaser can sell their shares.
A tender offer is made publicly and invite the shareholders to sell their shares for a particular price and within a particular window of time.
Under STARTUP INDIA, they can get government tenders, without any experience. Government tenders have high payments and large projects.
REGISTRATION BENEFITS
The registration process is so simple. The startups can be registered through an application process and the meeting is fixed with STARTUP INDIA hub.
They also help you clear all your doubts and everything you want to know.
FINANCIAL FUNDS
There are many startups which are patent based, it means they provide unique good or products.
To register a patent, a huge amount has to be paid which is known as patent cost.
STARTUP INDIA provides 80% of refund on these patent cost. The government also pays for the facilitator to obtain the patent.
The process of the registration process is very faster.
NETWORKING
Under the STARTUP INDIA scheme, the government provides opportunities to entrepreneurs to meet many startup stakeholders or investors, by conducting 2 startup fests in a year.
These startup fests are domestic as well as international level.
They also provide Intellectual property awareness workshop for young entrepreneurs.
INCOME TAX BENEFITS
This is a great initiative by the government for young talents. In this scheme, there is an exemption of income tax for 3 years after the incorporation year.
They can avail these benefits only after providing a certificate from Inter-Ministerial Board. Also, they can claim exemption of tax on capital gains by investing in specified funds.
ELIGIBILITY FOR REGISTERING STARTUP
- The company must be either a partnership firm or a private limited company or it must be a limited liability partnership firm.
- The startup should have approval from Industrial policy and promotion.
- You must also have a recommendation letter by incubation to register your startup under this scheme.
- The company should provide unique services or products.
- To register a startup, it should not be older than 5 years.
- The turnover of the company should not exceed more than 25 crores, to get registered under the STARTUP INDIA scheme.
- Finally, it should not be a part of a business of reconstruction of business which is already in existence.
HOW TO REGISTER YOUR STARTUP UNDER THIS SCHEME
- Incorporate your business.
- Register with startup India.
- Get DPIIT recognition.
- Recognition Application.
- Documents required for registration.
INCORPORATE YOUR BUSINESS
The first thing you need to do to register your startup under this scheme or any is to incorporate your company as a private limited company or a partnership firm or a Limited Liability Partnership firm.
You should follow all the procedures for registering any business like getting the PAN, partnership registrations, and other important or required documents.
REGISTER WITH STARTUP INDIA
The registration process is very simple under this scheme.
All you need to do is login onto the website which is startupindia.gov.in, after filling in the form you will get a one-time password (OTP) on your registered email address.
After filling out all the required details, your startup India profile is created.
After the profile is created, you can apply for various incubator, mentorhsip and you will also get access to learn about various programs, government schemes, policies for startups and much more.
DPIIT RECOGNITION
After successfully completing creating the profile, the next step is to avail the Department for Promotion of Industry and Internal Trade Recognition (DPIIT).
This would be an important factor in how to start a startup in India!
This recognition helps you avail all the benefits like income tax benefits, funds, intellectual property services and resources, self-certification under labor and environment laws, tax exemptions for 3 consecutive years after the incorporation of a business, tax exemption on investment above market value, relaxation in public procurement norms and much more.
RECOGNITION APPLICATION
Once the Recognition Application Detail page opnes, click on view details and fill up the Startup recognition form and submit the details.
DOCUMENTS REQUIRED FOR REGISTRATION
- PAN number
- Incorporation certificate of your startup.
- Proof of concepts like website link or video for validation.
- Details of Directors.
- Patent and Trademark details (optional).
After filling and uploading all the details and documents, you will immediately receive a recognition number for your startup.
This would be an important factor in how to start a startup in India!
The recognition certificate will be issued after the successful verification of the details or documents that you’ve uploaded. The verification process undergoes for a maximum of two days.
You need to be very careful while uploading the documents.
If you upload a wrong document or forged document then you will need to pay a fine of a minimum of 25,000 rupees and also 50% of the paid-up capital of your startup.
REGISTRATIONS REQUIRED FOR STARTUP
As STARTUP INDIA is one of the easiest way to register your startup and get recognized, there are some other ways too, to register your startup.
- Business registration
- MSME Registration.
- GST Registration.
- Udyog Aadhar registration.
BUSINESS REGISTRATION
As mentioned earlier, to register a startup or a company the business has to be incorporated in any of these business structures.
There are many business structures to register your business, some of them are as follow,
- NGO
- Sole Proprietorship.
- Private Limited Company.
- Public Limited Company.
- Partnership firm.
- Limited Liability Partnership Firm.
MSME REGISTRATION
This scheme can be obtained by micro, small and medium enterprises.
This scheme helps to avail various subsidies and benefits of loans, taxes, and other various schemes.
There are many benefits for micro, small and medium enterprises for their raw materials and other goods that can be purchased at subsidized rates.
GST REGISTRATION
All manufacturers, exporters, sellers, service providers, etc need to get their GST registrations.
This registration should be obtained within 30 days after the business incorporation. Failing to get this registration may lead to a heavy fine and penalties.
The GST Registration, you need to get in following cases.
- When the turnover of the startup or a business is more than 20 lakhs or 10 lakhs in different states.
- If the business supplies goods within the state.
- When the business sells its good or services online.
- When the tax registration of the business is held under the previous tax regime.
UDYOG AADHAR RESGISTRATION
Udyog Aadhar registration is a new initiative to support small businesses, it is initiated by the government.
In this scheme, the small scale business can get various subsidies and loans, and other benefits.
TOP INDIAN STARTUPS
Some of the startups that were once startups and now a sucessful start up in INDIA.
- Olacabs.
- AddressHealth.
- Zomato.
- Paytm.
- FreshMenu.
- Myra.
- Cure.fit
- Dunzo.
- Shuttl.
- Razorpay.
If you think your idea is innovative, then its not an idea, it is startup. Think problem, make startup.
meletika 