startup india registration

There are several reasons why you should register your startup under the Startup India Scheme. Some of them are:

• To avail the benefits and subsidies offered by the government to startups
• To access funds easily from banks and other financial institutions
• To tap into a wide network of mentors, incubators, and accelerators
• To receive assistance in marketing and branding your startup
• To establish a distinct identity and credibility among investors in India
• To obtain intellectual property protections such as trademark and patent protection on priority and at lower costs
• To be eligible to bid on government tenders
• To have a streamlined exit process

To be eligible for Udyam registration, your startup must meet the following criteria:

• It should be registered as a private limited company, partnership firm, or limited liability partnership in India
• It should be less than ten years old from the date of incorporation/registration
• It should have had a maximum annual turnover of not more than ₹100 crores in any of the previous financial years
• Innovation or significant improvement of existing products, services, or processes should be the primary focus, with potential for employment generation or wealth creation
• Entities formed by restructuring or splitting an existing business are not eligible as startups

The following documents are necessary for Udyam Registration:

• Certificate of Incorporation or registration certificate of the entity
• Proof of Address
• PAN Card
• ID proof of Directors/Partners and other details
• Company’s Bank Account Details and other relevant financial information
• Memorandum of Association (in case of a company)
• Resolution for startup company registration under the Udyam Scheme (for existing companies)
• Information regarding the product and revenue model
• Website or pitch deck

The registration process for Udyam is straightforward and can be completed online.

Step-by-Step Process:

1. Create a Profile on Udyam Website: Begin by creating a profile for your startup on the Udyam website. Fill out the form with your business details, ensuring to select ‘startup’ as the type of user.

2. Apply for DPIIT Recognition: After creating a profile, apply for Department for Promotion of Industry and Internal Trade (DPIIT) recognition by clicking on the “Get Recognised” button and filling out the “Startup Recognition Form”. DPIIT recognition brings benefits such as relaxation in public procurement norms, tax exemptions for three consecutive years, access to resources for intellectual property, certification under environmental and labor laws, and more.

3. Submit Required Documents: Along with the application, submit all required documents ensuring they are valid and clearly scanned to avoid delays or rejection.

4. Receive Recognition: After submission, await approval. Typically, approval occurs within two days, and you will receive a recognition number to track your application status. Finally, download the Certificate of Recognition from the Udyam portal upon approval.

Penalties for Fraud

Penalties for uploading forged, manipulated, or incorrect documents or failing to upload required documents include a fine of 50% of the paid-up capital with a minimum of ₹25,000.