Register a Private Limited Company as a Start-up
Start-ups have increased significantly, and technology and innovation have both grown. India has created more than 7 lakh, new employees, making it the third-largest start-up in the world. The Atal Innovation Mission, which is located under NITI Aayog and provides support to young and emerging entrepreneurs, is one of the institutionalized policies for entrepreneurship. Today, it’s common to see female business owners embracing the startup ecosystem. Several successful female business owners have already cornered the market. The two leading ladies in town are Vinita Singh, the founder of Sugar Cosmetics, and Falguni Nair, the founder of Nykaa.
Now the question arises is if they can why don’t you?
In this write-up, you will read about the various business structures which can be registered as a start-up as well as the advantages and the complete procedure to Register a Start-up in India.
What are the different business structures for Startups?
In essence, anyone can launch a business by registering with any of the business structures listed below.
- Private Limited Company
- Public Company
- Limited Liability Partnership (LLP)
- Registered Partnership
- Producer Company
- One Person Company (OPC)
- Sole Proprietorship
However, you need to choose which of the following best fits and complements your dream Venture based on your goal and business operations. If you’re still undecided about the type of business structure you should choose. Contact us at firstname.lastname@example.org.
CRITERIA FOR REGISTERING A START-UP IN INDIA AND OBTAINING A CERTIFICATE OF RECOGNITION
- The new business should be incorporated as a Limited Liability Partnership, a Registered Partnership Firm, or a Private Limited Company
- In any of the Financial Years, the turnover of such a corporate entity must be less than Rs. 100 crores.
- The company has ten years from the date of establishment to qualify for startup registration.
- Most significantly, the start-up should have the ability to produce wealth and jobs while operating under the motto of innovation and development of currently offered goods and services.
HOW TO SELECT THE BEST BUSINESS FORMAT FROM AMONG THE VARIOUS OPTIONS FOR YOUR DREAM VENTURE?
There are a number of factors that might help you determine which company will best help you grow your dream firm.
As a business expands, it needs finance from the market, such as raising money through venture capitalists, angel investors, etc. As a result, you can register as a private limited company if your goal is to build and extend your firm through money raising.
When a private limited company is registered, there is an advantage of limited liability where the members’ liability is constrained as opposed to when a sole proprietorship is registered, the owner’s liability is unlimited and they are responsible for all debts and losses made by the company.
One Person Companies or LLPs are appropriate for small businesses since they allow proprietors to maintain sole control over the company. Whereas Private Limited Company complements the best in the diversified business.
How to become recognized in India as a start-up
Obtaining a registration certificate for the business structure you have chosen and intend to continue using is the first step in obtaining the certificate of recognition. You can apply for the start-up registration once you have received your Certificate of Incorporation and registered your business on the MCA Portal. The actions you must take are listed below:
- Register under Start-up India Portal
Register your start-up under Start-Up India Scheme at https://www.startupindia.gov.in All you must fill out the application form with the relevant details and upload the required documents for verification.
What are the Documents Required for Start-up Registration?
- Certificate of Incorporation/ Registration Certificate
- Details of the Directors
- Details of Trademark or Patent if any
- PAN Number
- A proof of concept which can be in the form of a website link, video, or pitch deck for the Startup at the validation Stage.
- Tax Exemption
In India, startups that are incorporated on or after 1st April 2016 can apply for Income Tax Exemption only if the Inter-Ministerial Board (IMB) validates the innovative nature of the business.
- Tax Exemptions for the period of 3 consecutive years out of 10 years from the date of incorporation.
- Exemption under Section 80-IAC of the Income Tax Act.
- Exemption from the provision of section 56(2) (viib) of the Income Tax Act.
- Issue of Recognition number and Start-up Certificate
Once the Application is duly submitted on the portal you will get an automatically generated recognition number with immediate effect and the Start-up certificate shall be issued once all the submitted documents are duly verified by the department which may take not more than 2-3 days from the date of filing the application form.
If you want to register a Private Limited Company as a start-up, at Compliance Calendar LLP we have a dedicated team of professionals who are experts in their own field, and they can give you complete handholding throughout the registration process. We can also provide post-incorporation services to you. In case you have any queries feel free to contact us at 9988424211 or email us at email@example.com