Under the Startup India initiative, eligible companies can get recognized as Startups by DPIIT, in order to access a host of tax benefits, easier compliance, IPR fast-tracking & more.
Startup India is a government initiative that was announced in 2016 to help startups in India grow.
💸INCOME TAX EXEMPTION FOR 3 YEARS 💰
Under the Startup India Scheme of the govt of India, start-ups may apply for tax exemption for three years within ten years of their establishment. We assist the start-up in obtaining tax exemption u/s 80IAC.
The government, realizing this struggle, has allowed several tax exemptions for Startups. One among them is tax exemption under Section 80IAC of the Income Tax Act. Section 80IAC provides a 100% tax exemption for startups recognized by the DPIIT. The tax exemption can be availed for any three consecutive assessment years, as long as the Startup is eligible.
💵SEED FUNDING GRANT UP TO 20 LACS (NON REFUNDABLE)💰
The Startup India Seed Fund Scheme (SISFS) offers financial support to startups for the following: Proof of concept, Prototype development, Product trials, Market entry, and Commercialization.
The scheme provides support to startups from the proof-of-concept stage. It also helps with market access, prototype advancement, product trials, and commercialization.
The Startup India scheme provides benefits to startups, including the ability to apply for government tenders.
One of the requirements of having minimum prior experience/turnover for filing the government tender by the companies does not apply to the companies registered under the Startup India scheme
Startups will have to apply for government tenders through Startup India Certificate, the company will not be required to deposit any EMD amount or hide the criteria of total turnover and experience.
The Start-Ups Intellectual Property Protection Scheme is another government scheme that provides financial assistance to startups to secure their intellectual property assets. The scheme provides a subsidy of up to 80% of the total cost incurred by the startup in filing and prosecuting patents, trademarks, and designs.
📄SELF CERTIFICATION✴️
Self-certification is a provision in the Startup India scheme that allows startups to self-certify their compliance with six labor laws and three environmental laws for three to five years after incorporation. This can be done online
Startups shall be allowed to self-certify with 9 Labour Laws and 3 Environment Laws (refer below). In case of the labour laws, no inspections will be conducted for a period of 3 to 5 years
✴️OTHER INSTANT BENEFITS UP TO 1 LACS✴️
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The company should be registered as Private Limited, LLP, a Registered Partnership Firm.
The annual turnover of the company should be below Rs. 100 crore
Company incorporation should not be more than 10 years old
The company's service or production must be unique and innovative or must contribute to employment generation or wealth creation.
Incorporation Certificate (COI):
Proof of the company’s legal incorporation, which is typically issued by the Registrar of Companies (ROC) or the relevant government authority.
A Company's Permanent Account Number (PAN) is a 10-character alphanumeric identification code. It is issued by the Income Tax Department and includes the company's tax details
Contact details of all partners or directors involved in the startup. like Email ID and Mobile Number of All Partners/Directors These will be used for official communication
MOA & AOA in case of private limited company and Partnership deed in case of LLP or Partnership Firm