All About Startups in India - Benefits, Registration etc

Benefits for Recognized Startups under the Startups India Scheme
1. Self Certification - The Startups may self certify compliance in respect of following 6 Labour Laws:
a) Other Constructions Workers (Regulation of Employment & Conditions of Service) Act, 1996
b) The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979
c) The Payment of Gratuity Act, 1972
d) The Contract Labour (Regulation & Abolition) Act, 1970
e) The Employees Provident Funds and Miscellaneous Provisions Act, 1952
f) The Employees State Insurance Act, 1948
In order to self certify compliance, you may log on to "Shram Suvidha Portal" - https://shramsuvidha.gov.in/startUp.action

2. Tax Exemption - The Inter Ministerial Board setup shall validate Startups for the following 2 exemptions:
a) Income Tax Exemption on profits under sec 80- IAC of Income Tax Act - Provided following conditions are satisfied:
i) A private limited company or limited liability partnership,
ii) Incorporated on or after 1st April 2016 but before 1st April 2021 and
iii) Products or services or processes are undifferentiated, have potential for commercialization and have significant incremental value for customers or workflow.
The deduction is for any 3 years out of 7 years from the year of incorporation of startup.    

b) Income Tax Exemption on Investments above fair market value received under section 56 of Income Tax Act
A DIPP (Department of Industrial Policy and Promotion) recognised startup being a private limited company shall be eligible to apply to the Inter-Ministerial Board for exemption from the Income Tax on investments above fair market value by angel investors.
Provided following conditions are satisfied:
i) The aggregate amount of paid up share capital and share premium of the Startup after the proposed issue of shares does not exceed 10 crore rupees,
ii) The investor/proposed investor, who proposed to subscribe to the issue of shares of the Startup has - 
a) The average returned income of Rs 25 lakhs or more for the preceding 3 financial years, or
b) The net worth of Rs 2 crore or more as on the last date of the preceding financial year.
c) The startup has obtained a report from merchant banker specifying the fair market value of shares.

3. Easy winding up of Company - Startups can be windup within 90 days on a fast track basis under Insolvency and Bankruptcy Code,2016. Link - http://www.mca.gov.in/MinistryV2/closecompany.html

4. Startup Patent Application and IPR (Intellectual Property Rights) Protection - Fast track process and upto 80 % rebate in filing patents.

5. Easier Public Procurement Norms - Exemption on EMD(Earnest Money Deposit) for filing government tenders and minimum requirements. Get listed on GeM (Government e-Marketplace) as seller. Link - https://gem.gov.in

6. SIDBI (Small Industries Development Bank of India) Fund of Funds - Funds for investment into startups through AlF (Alternative Investment Funds). Link - https://venturefund.sidbi.in/Home.php

Startup India Scheme - In this scheme, Government of India has provided a fund of Rs 2500 crore for startups as well as a credit guarantee fund of Rs 500 crore rupees.

Startup Registration 
i) The Company must be formed as a private limited company or limited liability partnership.
ii) It should be a new firm or not older than five years and the total turnover of a company does not exceed Rs 25 crores.
iii) The firms should have obtained the approval of DIPP.
iv) To get approval from DIPP, startup should be funded by an Incubation fund, Angel fund or Private Equity fund.
v) The startups should obtain a patron guarantee from the Indian patent and Trademark office.
vi) It must have recommendation letter by an incubation.
vii) The startup must provide innovative schemes or products.
viii) Angel fund, Incubation fund, Accelerators, Private Equity fund, Angel network must be registered with SEBI.

Do Follow :-
Facebook - https://www.facebook.com/TaxCreators/
Instagram - https://www.instagram.com/taxcreators/