Ever since the introduction of startup India initiative, the government departments have been flooded with requests of startup registration. And why won’t it? It has paved the new entrepreneurs to come forward and show what they are made of.
But is everything so cut and clean with registering a startup? In this article, we are going to look at the benefits of startup registration as well as its drawbacks.
What is a Startup? A Startup is the “Starting up” of a business. In more simple and eloquent terms, it’s a budding business that has just arrived to make a mark in the market. In the legal terms, as per Startup India, startup has the following definition.
“A startup is a business entity formed by one or two entrepreneurs to provide a unique product or service”
Innovation is the core of the definition of startup. Without it, you can’t be recognized as one.
What is startup registration?
If you have a unique enough business, you can make it the part of the Startup India initiative. To accomplish it, all you need to do is register it with the initiative. The process is called startup registration.
What is the process of startup company registration?
The process of startup company registration is as simple as it gets, all you have to do is:
1. Start with the company registration process: Startup registration is done for a business entity. And if you’re choosing a good business entity, why not choose the best one? Why not choose company registration?
2. Go online to the startup India portal: Once you’re there, register yourself as a new user. As you do it, you’ll get access to the dashboard through which you’ll be able to file the application for startup registration.
3. Register your startup: Go and fill the DIPP startup registration application, it’s present within the portal itself. As you fill the application, you’ll be asked the following questions. Answer each of them in at least 150 words:
a. What’s the problem your startup is trying to solve?
b. How is your startup solving that issue?
c. What makes the solutions your startup provides, unique?
d. How your company is going to generate revenue through that business.
Submit the application with the required documents: Attach the required documents that consist of Certificate of incorporation, MOA, AOA, your ID proof, address proof and other business licenses (if you have any)
5. Get your startup registration: if you’ve used the right words to give the answer to those questions, and you’ve attached the correct documents, you’ll register startup.
Benefits of registering a startup?
Micro Small and Medium enterprises, when get the MSME startup registration get access to the following benefits:
1. Innovate to your heart’s content: Startup incentivizes innovation. If you’ve lived under the weight of mockery of others, with startup registration under DIPP (Department of Industrial Policy and Promotion), you have the chance to prove everyone wrong.
2. Tax exemption for the first three years: No one wants the burden of taxes right when they start to earn money. Thankfully, the government understands that. That’s why, startup registration gives you an option to get exemption from paying taxes for the three years.
3. Multiple interested parties to fund you: If you’re looking for that funding icing to add flavour to your startup cake, startup registration would do that for you. It will open your business to parties who are interested in funding innovative projects.
4. Special incentives when it comes to projects Those with MSME startup registration are given preference when the government is releasing special projects. By favouring these budding start-ups, the government is able to lift them from the business competition.
However, not everything is clean and pristine when it comes to startup registration. There are some downsides to it as well.
The constant pressure to provide innovation
Why you should still register a startup? The downsides are effective, but they are not enough to stop you from getting your startup registered:
1. You can innovate forever if you put your mind to it.
2. You have to believe in yourself to be truly exceptional.
3. Startup ecosystem is constantly developing.
Believe that all other DPIIT registered start-ups believe, that startup registration is merely a door that opens you to opportunities. It’s up to you to walk through that door and grab them.