Accounting
LLP vs Pvt Ltd – Which Business Structure is Right for You?
Introduction Choosing the right business structure is crucial for long-term success. Two of the most popular structures in India are the Limited Liability Partnership (LLP)
The Department for Promotion of Industry and Internal Trade (DPIIT) launched Startup India registration under the Startup India Scheme to encourage business innovation and growth. At SubmitReturn.com, we assist startups in obtaining official DPIIT recognition, enabling them to access government benefits and accelerate their business expansion.
Earlier known as DIPP registration, the Startup India Scheme enables eligible businesses to register as DPIIT-recognized startups and access a host of benefits. The initiative seeks to turn India into a hub of job creators rather than job seekers. To be eligible, the business must be registered as a Private Limited Company (PLC), Limited Liability Partnership (LLP), or a Registered Partnership Firm. It should also be innovative, contribute to enhancing existing products or services, and have the potential to create wealth and employment. If your PLC or LLP meets these criteria, you can apply online for Startup India Registration today!
A business registered under the Startup India Scheme can avail income tax exemption under Section 80 IAC of the Income Tax Act. This provision allows startups to claim a tax holiday for any three consecutive financial years within the first ten years from incorporation, subject to meeting the following conditions:
A Startup India-recognized company can claim tax exemption on funds raised via angel investments. This benefit applies only if the total paid-up share capital and share premium, following the proposed share issuance, do not exceed ₹25 crore. Additionally, the startup must comply with specific conditions related to investments in prescribed assets to be eligible.
Startups recognized under the Startup India Scheme can access multiple intellectual property (IP) benefits. They are eligible for rebates on government fees for trademark applications and can receive up to an 80% reduction on patent filing fees. Furthermore, they can use the fast-track process for patent applications. The government also funds facilitators for filing any number of patents, trademarks, or designs, leaving startups responsible only for paying the applicable statutory fees.
Startups can self-certify adherence to six labour laws and three environmental laws for up to five years from their date of incorporation.
Startups registered under the DIPP recognition scheme can participate in government tenders without needing prior experience or a minimum turnover. They are also exempted from submitting an Earnest Money Deposit (EMD) when bidding.
Networking is crucial for entrepreneurs to increase visibility and build connections within their industry. Startups registered under the DIPP scheme gain access to platforms where they can engage with fellow startups, investors, and prominent speakers at government-organized events and summits. Additionally, DIPP-recognized startups can register as sellers on the Government e-Marketplace (GeM), allowing them to offer products and services directly to government departments and agencies.
Startups can secure funding through the Fund of Funds (FoF) initiative under the Startup India scheme. Under this program, DIPP has allocated ₹10,000 crore to support eligible startups. The Small Industries Development Bank of India (SIDBI) manages the disbursement of these funds, which are provided to startups approved by designated implementing agencies.
Startups registered with the Ministry of Corporate Affairs (MCA) as Private Limited Companies or LLPs can opt for fast-track winding up. As per the Insolvency and Bankruptcy Code, 2016, startups with a straightforward debt structure or meeting specified income criteria may be liquidated within 90 days of submitting an insolvency application.
Certificate of Incorporation from MCA/Registration Certificate from ROF
PAN Card of an entity
MOA & AOA in case of company and Partnership deed in case of LLP or Partnership Firm
List of Directors or Designated partners or members along with their photographs and contact details
URL of website & Mobile App of an entity (if any) and Social Profile’s (LinkedIn and/or twitter) of Directors, DP’s and members.
If the entity has received any funds then the details related to the amount of investment and investor.
If the entity has applied or registered any IPR then the Information related to such application or registration.
Information relating to any Awards/Certificate/ Recognition received by the entity.
To claim deduction under section 80-IAC, Form-1 needs to be filed along with Annual Accounts of the Startup for last three financial years (if applicable) and Copies of Income Tax Return for last three financial years (if applicable).
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Your business entity should be registered as either one of these:
– Private Limited Company;
– Limited Liability Partnership; or
– Registered Partnership Firm
The turnover for your entity cannot exceed Rs. 100 crores in any previous years.
Your entity must be newly formed. It must not exist for a period of more than 10 years.
Your business entity should be registered as either one of these:Private Limited Company; Limited Liability Partnership; or Registered Partnership Firm
Only Private Limited Company, Limited Liability Partnership and Registered Partnership Firm are eligible to apply for a StartUp Recognition certificate.
An entity working for innovation, deployment or commercialization of new products, process or services driven by technology or intellectual property is eligible to apply. A new product/service/process, or a significantly improved existing product/service/process, that can create or add value to customers or a workflow can also file an application to register itself under this scheme.
After registration you can connect to other Startups, investors or incubators on the Startup India portal under the Tab – ECOSYSTEM or you can connect by login into your account.
There is no government fee for the registration under the Startup India Scheme.
The government officers thorougly check all the information and documents provided in the application, hence the time period depends on the government processing time.
For the period of 10 years from the date of incorporation or up to the turnover increases the limit of Rs. 100 crore in any financial year.
DPIIT stands for the Department for Promotion of Industry and Internal Trade. It was formerly known as DIPP (Department of Industrial Policy & Promotion) until 2019.
Since, One Person Company is a form of a company it is entitled to be recognized as “StartUp”.
No, entities formed by Splitting Up or Reconstruction of Business already in existence are not eligible for registration under this scheme.
No, the DPIIT recognition for Startups is different from registration on Startup India website. To avail the benefits of Startup India scheme, the entity must be registered under Startup India Scheme provided by DPIIT. Only creating the account on the website of Startup India does not amount to getting DPIIT startup registration.
The application is to be submitted online at www.startupindia.gov.in
Yes, It can be availed later on also.
By registering under this scheme your entity will be eligible for availing tax benefits but to avail it, you need to separately apply for it by log in on the portal of Startup India.
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