Startup Registration

Description

A startup entity is a newly formed entity not resulting from split up or restructuring of existing business. The company should not be 10 years old and having a turnover of less than Rs. 100 crore. To register as a startup entity structure, the business should be either a Private limited or LLP or registered partnership firm. The entity should have a plan or improvement of innovative products or services with a scalable business model and a high potential for creating wealth & employment.

Registration Process

1. Registration of a startup  can be done online using   “Shram Suvidha Portal” of the Ministry of Labour and Employment
2. After successful login, click the link “Is Any of your Establishment a Startup?”
3. Then the registration can be done by following the instructions.

Benefits of Startup registration

1. 3 years tax holiday in a block of seven years
2. Exemption from LTCG up to Rs. 50 lakhs if invested in prescribed manner for a period of 3 years
3. Exemption on LTCG on sale of residential property if such gains are invested in eligible startups
4. Restriction of holding 51% of voting right U/s79 is relaxed in case of startup for carrying forward losses.
5. Startup can apply for Govt. tender and exempt from prior experience/turnover criterion
6. No inspection will be for the first three years regarding labour laws.
7. Self-compliance and Self-certify under 3 Environment Laws
8. Closure/Winding up will be a quicker process – Just in 90 days!
9. 80% rebate in patent fees.
10. Creation of numerous incubators and innovation labs, events, competitions and grants.