Startup Business Registration
Share holders/Directors Details
- Pan card
- Aadhar card
- Passport or Voter ID or Valid Driving License
- Recent Bank statements (not older than 1 month)
Company Details
- Electricity bill or Telephone bill or gas bill of your office address (not older than 1 month)
- Property owner – Name & Address (to draft rental agreement)
- Two Proposed company names (To apply for name reservation)
- Digital signature for 2 directors
- PAN & TAN for the company
Deliverables
- Digital signature for 2 directors
- MoA & AoA preparation
- PAN & TAN for the company
- DIN for 2 directors
- Incorporation certificate
- Name reservation fees
- Current Account Opening Support.
Startup Business Registration Process - Overview
With the increasing ease of starting and running businesses, more individuals are pursuing entrepreneurship to fulfill their dreams. Your decision to join this journey is commendable because it contributes to solving problems and bolstering India’s economy through innovation.
The government plays a crucial role by offering diverse schemes and subsidies designed to foster startup growth and support MSMEs. To access these benefits, however, the first step is registering your business under a suitable legal structure.
Choosing the Right Business Structure:
One Person Company (OPC):
- Best for: Solopreneurs seeking limited liability protection.
- Minimum Members: 1
- Ease of Registration: Moderate
- Compliance Needs: Moderate
- Capital Raising: Difficult
- Tax Rates: Profits taxed at 30% with certain conditions.
Private Limited Company:
- Best for: Businesses aiming for investment and growth.
- Minimum Members: 2
- Ease of Registration: Moderate
- Compliance Needs: High
- Capital Raising: Easy
- Tax Rates: Profits taxed at 30% with surcharge and cess.
Limited Liability Partnership (LLP):
- Best for: Service-oriented or small businesses with low investment needs.
- Minimum Partners: 2
- Ease of Registration: Easy
- Compliance Needs: Low
- Capital Raising: Moderate
- Tax Rates: Profits taxed at 30% with AMT provisions.
Startup Schemes in India:
- Startup India Initiative: Offers concessions and tax benefits to promote innovative startups.
- ASPIRE: Focuses on rural startups, promoting entrepreneurship in agro-based industries.
- MSME/Udyam Scheme: Provides subsidies and lower interest rates for MSMEs.
- Basic requirements include being above 18, of sound mind, not insolvent, and having identity/address proof.
- Documents like PAN card, passport, proof of registered office, and details of directors/partners are necessary.
- Business Idea: Define your business concept, considering capital, workforce, demand, and profitability.
- Name Selection: Choose a unique name compliant with legal requirements.
- Structure Decision: Select between OPC, Pvt Ltd, or LLP based on your business goals.
- Registration: Partner with TrueConnect for seamless registration, handling all documentation and legal formalities.
Tax Exemptions:
- Tax Holiday: Startups can avail a 3-year tax rebate in a block of 7 years if turnover doesn’t exceed ₹25 crores.
- Investment Exemption: Tax relief on investments above fair market value by eligible investors.
- Capital Gains Exemption: Exemption on long-term capital gains when reinvested under specified conditions.
Starting a business involves careful planning and compliance with legal norms. TrueConnect can assist you throughout the registration process, ensuring a smooth start to your entrepreneurial journey.
FAQs
Choosing the best registration for your startup depends on various factors including your business type and future plans. Refer to the ‘types of startup registration’ section for detailed insights.
To obtain a startup certificate, you need to register under the Startup India Scheme by filling out the startup registration form. TrueConnect can assist you through this process.
While not mandatory, registering your startup in India offers numerous benefits that you cannot otherwise avail. It is advisable to register your startup to leverage these advantages.
Startups do not need to pay GST if their turnover is below the threshold limit. Once they exceed this limit, GST registration and compliance become mandatory.
The licenses required depend on the nature of your startup’s business activities. For instance, a startup in the food industry would need to obtain an FSSAI license.
The cost of registering a startup in India varies based on factors such as the type of startup and the invested capital. Contact TrueConnect to get specific quotes and guidance tailored to your needs.
