{"id":12707,"date":"2018-01-30T11:46:28","date_gmt":"2018-01-30T06:16:28","guid":{"rendered":"https:\/\/appstudio.co.in\/ucblog\/?p=12707"},"modified":"2018-11-16T14:34:42","modified_gmt":"2018-11-16T09:04:42","slug":"how-to-register-a-startup-company-in-india","status":"publish","type":"post","link":"https:\/\/appstudio.co.in\/ucblog\/business\/how-to-register-a-startup-company-in-india\/","title":{"rendered":"How To Register A Startup Company In India"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-12731 aligncenter\" src=\"https:\/\/de927adv5b23k.cloudfront.net\/wp-content\/uploads\/2018\/01\/IMG_5232-736x432.jpg\" alt=\"register\" width=\"736\" height=\"432\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The growth of entrepreneurship in India has seen an upswing of late with more and more people choosing to set up their own venture rather than continuing with a job. The many campaigns by Government of India have also helped tremendously to boost this growth, such as the Make in India initiative, <\/span><span style=\"font-weight: 400;\">Startup India campaign and Standup India<\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><span style=\"font-weight: 400;\">However, the intention to start a business is just the beginning. One should also know how to get the status of a recognised startup. In this post, we will help you look at the process of <a href=\"https:\/\/www.urbanclap.com\/hyderabad-company-registration\/?utm_source=article&amp;utm_medium=RegisterCompanyIndia&amp;utm_campaign=Blog-Inline\" target=\"_blank\" rel=\"noopener\">registering a<\/a><\/span><span style=\"font-weight: 400;\">\u00a0startup company in India<\/span><span style=\"font-weight: 400;\">. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The steps can be clearly divided into two: <\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\">setting up a business<\/span><\/li>\n<li><span style=\"font-weight: 400;\">applying for startup status under the <\/span><span style=\"font-weight: 400;\">Startup India<\/span><span style=\"font-weight: 400;\"> campaign. <\/span><\/li>\n<\/ol>\n<h2><b>Step 1: Setting up a Business in India<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The first step is to set up a business. There are five types of formats you can use to set up your <\/span><span style=\"font-weight: 400;\">start up business in India<\/span><span style=\"font-weight: 400;\">. These are: <\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Registered Partnership Firm<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Limited Liability Partnership (LLP) Firm<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">One Person Company (OPC)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Private Limited Company<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Here is how you go about the process for each category: <\/span><\/p>\n<h3><b>1. Registered Partnership Firm<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">To create a registered partnership firm, here is what you need to do: <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Choose the firm name.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Prepare the partnership deed. It will contain details such as name and address of the firm and the partners, nature of business, capital contribution, and profit sharing ratio, among others. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Get the firm registered with the Registrar of Firms in your state. You will need to file:\u00a0<\/span><\/li>\n<\/ul>\n<ol>\n<li><span style=\"font-weight: 400;\"> Application for registration.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">A certified copy of the partnership deed.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Proof of ownership of the place of business or rental agreement.<\/span><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Once the firm is registered, the partners need to apply for a PAN card and open a current account.<\/span><\/li>\n<\/ul>\n<h3><b>2. Limited Liability Partnership (LLP) Firm<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Here is how you register an LLP: <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Apply for a Designated Partner Identification Number (DPIN) and a Digital Signature Certificate (DSC).<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Prepare the partnership deed and the agree on important details such as address, name of partners, nature of business, capital contribution, profit sharing ratio, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Apply to the Ministry of Corporate Affairs (MCA) with 2-3 options for the firm name. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">File the Incorporation Document, the Subscriber\u2019s Statement, and details of Designated Partner like his name, address and consent to act as such. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">After incorporation, file the LLP Agreement within 30 days with the MCA. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Thereafter, apply for PAN and TAN for the LLP. <\/span><\/li>\n<\/ul>\n<h3><b>3. One Person Company (OPC)<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">An OPC being a type of private company is eligible to be called an entity under the <\/span><span style=\"font-weight: 400;\">Startup India<\/span><span style=\"font-weight: 400;\"> programme. The MCA has provided a simple process called the SPICe format to register an OPC. Here is how it works: <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Apply for a Digital Signature Certificate (DSC). <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Apply for company name in INC-1<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Prepare the Memorandum and Articles of Association (MOA and AOA) <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">File the Form INC-32 along with the MOA and AOA. The form contains applications for:<\/span><\/li>\n<li>Allotment of company name approved under the INC-1 application\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Allotment of DIN<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Incorporation of the new company<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Company PAN <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Company TAN <\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Submit an affidavit from the shareholder along with the nominee\u2019s consent to act as such, proof of his ID and address.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Once the incorporation is given along with the PAN and TAN, you can open a current account. <\/span><\/li>\n<\/ul>\n<h3><b>4. Private Limited Company<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Here is how you <a href=\"https:\/\/www.urbanclap.com\/chennai-company-registration\/?utm_source=article&amp;utm_medium=RegisterCompanyIndia&amp;utm_campaign=Blog-Inline\" target=\"_blank\" rel=\"noopener\">register a private company<\/a> in India if the number of shareholders is more than seven (in case it is seven or less, you can use the SPICe format described above under OPC formation): <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">At the outset, apply for your Director Identification Number (DIN) and your Digital Signature Certificate (DSC).<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Check the name availability by visiting the MCA site and apply for one with 2-3 options in order of preference.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Then, file the Form INC-2 with the Memorandum and Articles of Association within 60 days with the Registrar of Companies (ROC) of your state.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">After the registration is done, apply for your company PAN and TAN. In case the turnover is expected to exceed Rs. 20 lakh, apply for a GSTIN also.<\/span><\/li>\n<\/ul>\n<h2><b>Step 2: Getting the Start-up Status in India<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><span style=\"font-weight: 400;\">Startup India<\/span><span style=\"font-weight: 400;\"> Action Plan from the Government of India helps <\/span><span style=\"font-weight: 400;\">startup companies in India<\/span><span style=\"font-weight: 400;\"> in three ways: <\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Simplifying the overall business process through various initiatives.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Providing funding support and incentives.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Fostering partnerships between the industry and the academia and incubation of firms in campuses.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The definition of a <\/span><span style=\"font-weight: 400;\">start up business in India<\/span><span style=\"font-weight: 400;\"> for this purpose is any private limited company, registered partnership or a limited liability partnership, which is not more than seven years old (ten years for biotech ventures) with annual turnover not exceeding Rs. 25 crore. Various initiatives have been launched to help startups. Some of these include: <\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Self-certification for various labour and factory laws.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">No tax on profits for 3 years.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">No tax on capital gains for 3 years.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Establishment of a Fund of Funds with a total corpus of Rs. 10,000 crore.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Setting up a startup hub to create a single point of contact for everyone to get things done quickly and help in increased exchange of knowledge and access to funds.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Legal support for filing patents and fast-tracking of the patent examination process.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Relaxed procurement norms by doing away with prior experience or turnover requirements.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A faster winding up process.<\/span><\/li>\n<\/ol>\n<h2><b>Application for Start up India Registration<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">One can apply for the <\/span><span style=\"font-weight: 400;\">start up India registration<\/span><span style=\"font-weight: 400;\">, called the Certificate of Recognition for Startups, by visiting the <\/span><span style=\"font-weight: 400;\">Startup India<\/span><span style=\"font-weight: 400;\"> portal and filling in the application form and uploading the necessary documents.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are five sections to fill for <\/span><span style=\"font-weight: 400;\">startup companies in India<\/span><span style=\"font-weight: 400;\">, viz: <\/span><\/p>\n<p><b>1. Entity Details:\u00a0<\/b><span style=\"font-weight: 400;\">Here you need to put in your entity type (company, LLP, partnership), industry, sector, category, incorporation or registration number and date, name of entity and PAN details. <\/span><\/p>\n<p><b>2. Authorised Representative Details:\u00a0<\/b><span style=\"font-weight: 400;\">These will include name, designation and contact details of the person thus authorised.<\/span><\/p>\n<p><b>3. Director(s) \/ Partner(s) Details:\u00a0<\/b><span style=\"font-weight: 400;\">These include their name, gender, address and contact details.<\/span><\/p>\n<p><b>4. Additional Information:\u00a0<\/b><span style=\"font-weight: 400;\">You need to provide some additional details such as number of employees, stage of development of the product\/ service, details of Intellectual Property Right applications, etc.<\/span><\/p>\n<p><b>5. Tax Benefits:\u00a0<\/b><span style=\"font-weight: 400;\">These are available for businesses formed\/to be formed between 1<\/span><span style=\"font-weight: 400;\">st<\/span><span style=\"font-weight: 400;\"> April 2016 and 31<\/span><span style=\"font-weight: 400;\">st<\/span><span style=\"font-weight: 400;\"> March 2019. <\/span><\/p>\n<p><b>6. Self-Certification:\u00a0<\/b><span style=\"font-weight: 400;\">Here you need to upload your company incorporation certificate that has been issued by the MCA. The file can be in JPG, PNG or PDF format with size less than 5 MB<\/span><\/p>\n<p><b>7. Additional Documents\/Details:<\/b><span style=\"font-weight: 400;\"> You can provide additional documents\/details to support your application such as website link, videos, pitch deck, etc.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once the application is complete, it will be examined and the start up India registration certificate will be provided to the entity.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Under the <\/span><span style=\"font-weight: 400;\">Startup India<\/span><span style=\"font-weight: 400;\"> Action Plan, the government has also introduced initiatives like the Standup India scheme to help weaker sections of society and women entrepreneurs get bank loans between Rs. 10 lakh to Rs. 1 crore. Initiatives like the Pradhan Mantri MUDRA Yojana (PMMY) have been introduced to help small\/micro enterprises get the necessary funds to make and market their products. Such incentives have helped entrepreneurs think of setting up what they feel is the <\/span><span style=\"font-weight: 400;\">best business to start in India<\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p>You might also want to read:\u00a0<a title=\"Does Registering A Company In India Differ From State To State?\" href=\"https:\/\/appstudio.co.in\/ucblog\/business\/registering-company-india-differ-state-state\/\" target=\"_blank\" rel=\"noopener\">Does Registering A Company In India Differ From State To State?<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The growth of entrepreneurship in India has seen an upswing of late with more and more people choosing to set up their own venture rather than continuing with a job. The many campaigns by Government of India have also helped tremendously to boost this growth, such as the Make in India initiative, Startup India campaign [&hellip;]<\/p>\n","protected":false},"author":48,"featured_media":12731,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1380,1894],"tags":[1556,2336,2322,2251,2847,2848],"class_list":["post-12707","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-legal","tag-how-to-register-a-company","tag-how-to-register-a-company-in-india","tag-register","tag-register-a-company","tag-registering-a-company-in-india","tag-registering-a-startup-company-in-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How To Register A Startup Company In India<\/title>\n<meta name=\"description\" content=\"The growth of entrepreneurship in India has seen an upswing of late with more people choosing to set up their own venture. 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