How to enroll as a company in India?
The companies Act 2013, which has recently been passed in the parliament, gets assent from India’s President. On 29th August 2013, the companies Act received permission from the Indian President. The Act passed includes the law revisions that relate to the companies enrolling in India.
The Companies Act of 2013 also gets notified in the official gazette on 30th August 2013. Some provisions got implementation with a notification exhibited on 12th September, 2013.
After launching the startup India program by Prime Minister Narendra Modi, you can witness a rapid surge in the numbers of startups coming up. With the perks like tax exemptions, tax benefits, and many other benefits, more people establish a company of their own. The most enjoyable part about this is you can find many young entrepreneurs creating startups and companies. The benefits are pushing the young entrepreneurs to take more interest in the business. Thus, this is what speaks about the youth of incredible India.
What do you mean by a startup in India?
A startup is a business that gets managed/ operated by a group of peoples. Startups come intending to solve the hassle with the innovations of existing services/ products. These companies start operations when the young minds or founders witness a problem in the existing system. They make sure that they are solving the issue with the operations of their company.
Eligibility to operate like a startup in India
• The company that wants to enroll as a startup in India must be a private limited company/ limited liability partnership.
• Every company in India remains a startup for ten years. The time gets evaluated from the date of registration. However, lately, the Indian government changes the period from ten years to seven years. This is to offer chances and tax exemptions for the companies in the longer run.
• Every company in India remains a startup until the turnover per year remains at the 100 crore mark. Once you cross the 100 crore mark, you will no longer remain a startup. Earlier the mark was 25 crore. But the Indian government changes it in the recent past.
• Further, the company that wants to enroll as a startup in India must ensure that they get approval from the DIPP/ department of industrial policy and promotion.
• All the companies that want to register as a startup must also ensure that they are funded by incubation fund, angel fund, or any private equity fund.
• Further, a patron assurance from the Indian patent and trademark office is mandatory.
• All the companies that want to register as a startup must have a letter of recommendation from the incubation.
• The company must work to bring innovation to the existing product.
• All the details about the funds must get registered with SEBI.
The list of documents that are necessary before submission of a company
• Original copy of the formal letter issued by the registrar of the company about the name availability
• The DIN of all the proposed directors of the company
• Digital signature certificate
• Form-1 includes details about the company incorporation
• Form-18 showing the address of the proposed company
• Form-32 is for the proposed directors, secretary, and managers
Significant steps to enroll as a company startup in India
1st step- obtain the digital signature
As per the IT Act requirements, 2000, there are provisions for submitting digital signature for all the electronic documents submitted. It is to assure about the security and authenticity of the documents that filed electronically
2nd step- obtaining the Director identification Number
This concept of obtaining the Director Identification number got introduced with section 266A t0 266G in the companies Act, 2006.
3rd step- Account creation on the MCA portal
4th step- apply for the company registration
Detailed steps for registering as a startup in India
Step-1 business incorporation
This is the primary ad core step to register as a startup. As the eligibility states that you need to be a private limited company or LLP to get your startup registration, you need to follow all the standard procedures to achieve your business incorporation.
Step-2 registration under startup India
This is the next thing that you need to do. After obtaining your company registration, you need to acquire the startup enrolment under the startup India scheme. On visiting the startup India portal, you can find a form to furnish all the details to get your startup registration. You also need to upload certain necessary documents.
Step-3 all the documents that you need to furnish in the PDF format
List of all the letter of recommendation that you must get during startup registration
• A letter of recommendation from the incubator known in a post-graduate college India; the format must get approved by the DIPP
• A letter of recommendation from the incubator that Indian Government funds under any certain scheme
• Letter of recommendation from the incubator recognized by the Indian government as per the format approved by DIPP
• Letter of funding that doesn’t value less than 20% of the equity; the letter of funding can be from the Private Equity Fund, incubation Fund, Accelerator, Angel Fund, Private Equity Fund, registered with SEBI
• Letter of recommendation from the central or state government
• You must file a patent and then publish it in the Indian Patent Office in the area relating to the nature of business
• Registration certificate
• Uploading of certificate of incorporation
• Brief definition about business operations