India's startup ecosystem is experiencing unprecedented growth, with the government actively encouraging young entrepreneurs to establish innovative businesses. Startups play a crucial role in driving economic development and creating employment opportunities. A startup is defined as a business entity that introduces innovative products, services, or processes that address existing problems in society, or significantly improves upon current solutions in the market.
Startup India
The Startup India initiative, launched by the Government of India under Prime Minister Narendra Modi's leadership, aims to strengthen the Indian economy by recognizing and promoting innovative startups while attracting talented entrepreneurs. This flagship program provides comprehensive support through various schemes, tax benefits, and simplified compliance procedures designed to foster innovation and entrepreneurship across the country.
Steps to Register Your Startup With Startup India
Step 1: Incorporate your Business
The initial step involves incorporating your business entity as a Private Limited Company, Partnership Firm, or Limited Liability Partnership (LLP). You must complete all standard business registration procedures, including submitting the registration application and obtaining the Certificate of Incorporation or Partnership Registration Certificate.
For Private Limited Companies and LLPs, you need to file the registration application with the Registrar of Companies (ROC) in your jurisdiction. Partnership Firms must submit their registration application to the Registrar of Firms in their respective area. Along with the application, you must provide all required documentation and pay the applicable registration fees to complete the incorporation process.
Step 2: Register with Startup India
After incorporation, your business must be registered as a startup through the Startup India portal. The entire registration process is streamlined and can be completed entirely online. Navigate to the Startup India official website and click on the 'Register' button to begin the process.
You will need to provide your name, email address, mobile number, and create a secure password, then click on 'Register'. After receiving the OTP sent to your registered email, enter it along with additional details including user type, startup name, and current stage of your startup. Once you submit these details, your Startup India profile will be successfully created.
With your profile active on the platform, you gain access to numerous benefits including acceleration programs, incubator and mentorship opportunities, educational resources, funding options, government schemes, and market access initiatives designed to support startup growth.
Step 3: Get DPIIT Recognition
The next critical step is obtaining recognition from the Department for Promotion of Industry and Internal Trade (DPIIT). This official recognition unlocks multiple benefits including access to premium intellectual property services and resources, relaxed public procurement norms, self-certification privileges under labour and environment laws, simplified company winding-up procedures, access to the Fund of Funds, three consecutive years of tax exemption, and tax exemption on investments above fair market value.
To apply for DPIIT Recognition, log in to your Startup India account using your registered credentials and navigate to the 'Recognition' tab. Click on 'Apply for DPIIT Recognition' and then select 'Apply Now'. This will redirect you to the National Single Window System (NSWS) portal. Companies and LLPs must register on NSWS, add the 'Registration as a Startup' form, and complete the 'Startup Recognition Form' to obtain DPIIT recognition.
Step 4: Recognition Application
On the Startup Recognition Form, you must provide comprehensive details across multiple sections. This includes entity information, complete office address, authorized representative details, directors or partner information, required startup information, details about startup activities, and self-certification declarations. Click on the plus icon located on the right side of each form section to expand and fill in the required information.
After completing all sections of the Startup Recognition Form, carefully review the terms and conditions, accept them, and click the 'Submit' button to proceed with your application.
Step 5: Documents for Registration
To complete your startup registration, you must prepare and submit the following documents:
• Incorporation or Registration Certificate of your startup entity
• Proof of funding documentation, if you have received any investments
• Authorization letter from the authorized representative of your company, LLP, or partnership firm
• Proof of concept materials such as pitch deck, website link, or demonstration video (required for startups in validation, early traction, or scaling stages)
• Patent and trademark registration details, if applicable
• List of awards or recognition certificates received by your startup, if any
• Permanent Account Number (PAN) of your business entity
Step 6: Recognition Number
Upon successful submission of your application, you will immediately receive a recognition number for your startup. The official certificate of recognition will be issued after thorough examination of all submitted documents. Typically, this review process is completed within two business days after online submission, and you will be notified once your certificate is ready for download.
Step 7: Other Areas
Beyond basic registration, startups can explore several additional areas for comprehensive business development:
Patents, Trademarks and Design Registration
If your startup requires patent protection for innovations or trademark registration for your brand identity, you can approach any government-approved facilitator from the official list. Startups benefit from an 80% reduction in fees, meaning you only need to pay the statutory fees, making intellectual property protection significantly more affordable.
Funding Support
Accessing finance remains one of the primary challenges for early-stage startups. Many entrepreneurs struggle to attract investors due to lack of experience, insufficient security, or absence of established cash flows. Additionally, the inherently high-risk nature of startups, where a significant percentage fail to achieve market success, often deters potential investors.
To address this funding gap, the Government launched the Startup India Seed Fund Scheme (SISFS) on January 21, 2021, with a total allocation of Rs. 945 crores. This scheme provides financial assistance to eligible startups over a four-year period, helping them overcome initial funding challenges and achieve sustainable growth.
Self Certification Under Employment and Labour Laws
Startups are permitted to self-certify their compliance with six labour laws and three environment laws, significantly reducing compliance costs and regulatory burden. This self-certification facility is available for a period of three to five years from the date of incorporation, allowing startups to focus on core business activities rather than extensive regulatory paperwork.
Additionally, units operating under 36 white category industries as published on the Central Pollution Control Board website are exempted from clearance requirements under three environment-related Acts for a period of three years, further simplifying compliance procedures.
Tax Exemption Benefits
Eligible startups can avail income tax exemption for three consecutive years, providing significant financial relief during the critical early growth phase. To qualify for these tax benefits, startups must obtain certification from the Inter-Ministerial Board (IMB). Startups incorporated on or after April 1, 2016, are eligible to apply for income tax exemption under this scheme.
Key Features of the Fund of Funds
The Fund of Funds operates under specific management and investment guidelines designed to support startup growth:
• The Small Industries Development Bank of India (SIDBI) manages the Fund of Funds operations
• Life Insurance Corporation (LIC) serves as a co-investor in the Fund of Funds structure
• The Fund of Funds contributes up to a maximum of 50% to SEBI-registered Venture Funds (referred to as "daughter funds"). To receive this contribution, the daughter fund must have already raised the remaining 50% from other sources. The Fund of Funds maintains representation on the venture fund's board based on the contribution percentage
• The Fund ensures diversified sectoral support, including manufacturing, agriculture, healthcare, education, and other key industries, promoting balanced economic development
Thanks to these comprehensive government initiatives, registering as a startup has become remarkably straightforward and accessible for entrepreneurs across India.
Frequently Asked Questions on Startup Registration India
Who can register with Startup India?
Entities incorporated as Private Limited Companies, Partnership Firms, or Limited Liability Partnerships can register under the Startup India scheme. These business entities must have an annual turnover not exceeding Rs. 100 crores and should have been in existence for up to ten years from the date of incorporation or registration. Additionally, the entity must be working towards innovation, development, or improvement of products, services, or processes.
What are the benefits of signing up with Startup India?
Startups receive numerous benefits under the Startup India Initiative, but these are available only after obtaining DPIIT recognition. Key benefits include self-certification of compliance with six labour laws and three environment laws for up to five years from incorporation, three-year income tax exemption, and access to premium intellectual property services and resources specifically designed to help startups protect and commercialize their intellectual property rights.
What kind of business structure should I choose for my startup?
The most commonly preferred business structures for startups are Private Limited Companies and LLPs. Private Limited Companies offer strong legal recognition and are generally preferred by investors, though they come with stricter compliance requirements and higher incorporation costs. LLPs provide lower incorporation costs, more relaxed compliance obligations compared to Private Limited Companies, limited liability protection, and are equally recognized by investors globally.
What can I do to attract investors to a startup?
To attract investors, you need a compelling product with a scalable business model and strong market visibility. Ensure your product receives healthy user engagement and demonstrates clear market traction. Register your startup on Startup India and actively seek out potential investors. Most importantly, develop the ability to effectively communicate your business idea, value proposition, and the long-term sustainability of your business model to potential investors.
Can a foreign company register under the Startup India hub?
Any entity that maintains at least one registered office in India can register on the Startup India hub, as location preferences are currently configured only for Indian states. However, the government plans to expand registration capabilities to include stakeholders from the global ecosystem in the near future.
What is the difference between an accelerator and an incubator?
Startup incubators are institutions that assist entrepreneurs in developing their businesses, particularly during the initial stages. Incubation services are typically provided by institutions with extensive experience in both business and technology domains. Startup accelerators support early-stage, growth-driven companies through time-bound programs where companies spend several weeks to months working with experienced mentors who provide education and may also offer financial assistance.
For how long is a company recognized as a startup?
A business entity ceases to be recognized as a startup upon completing ten years from the date of its incorporation or registration, or if it exceeds the previous year's turnover of Rs. 100 crores. The startup status automatically expires on completion of ten years from the date of registration or incorporation.
Can an existing entity register itself as a "Startup" on the Startup India Portal?
Yes, existing entities can register as startups provided they meet all prescribed criteria for startup recognition. They will be eligible to avail various tax and IPR benefits available to startups, subject to meeting the same criteria mentioned throughout this article, including turnover limits, age restrictions, and innovation requirements.
How do I know my registration is complete?
Once your application is processed and your startup receives recognition, you will receive a system-generated certificate of recognition. This certificate can be downloaded directly from the Startup India portal, serving as official confirmation that your registration is complete and your startup is recognized under the scheme.
Does a startup need to be registered in India?
Yes, to register with the Startup India website and access startup benefits, your entity must maintain at least one registered office in India. This requirement exists because location preferences are currently configured only for Indian states. However, the government plans to expand registration capabilities to include global ecosystem stakeholders in the future.
What should I do when my password is showing as invalid at the time of registering my company on the Startup India portal?
The password for Startup India portal registration must contain 8 to 15 characters, including at least one lowercase letter, one uppercase letter, one numeric digit, and one special character. The portal will only accept passwords that meet all these security requirements. Ensure your password includes all these elements to avoid validation errors.
How to write the startup activities section on the startup recognition form to ensure it is accepted?
A startup is registered with the objective of solving a problem. For successful registration with the Startup India initiative, your startup must demonstrate work towards innovating something new or improving existing technology to solve a problem. In the 'Startup Activities' section of the Startup Recognition Form, you must clearly describe: the specific problem your startup is solving, the proposed solution to address this problem, the uniqueness and innovative nature of your product or service, and your revenue-generating business model.