๐ How to Register a Startup in India: Starting a startup in India might sound like a dream, but the right guidance can turn that dream into a registered business. In this blog, we’ll explain everything you need to know about registering a startup in India — in plain, simple words.
๐ก What is a Startup?
According to the Department for Promotion of Industry and Internal Trade (DPIIT), a startup is a company that:
• Is less than 10 years old,
• Has an annual turnover of less than โน100 crore,
• Works towards innovation, improvement of products/services, or a scalable business model.
๐งพ Which Registration is Best for a Startup?
There are three common types of business structures:
1. Private Limited Company (Pvt Ltd) – Best for scalability and fundraising.
2. Limited Liability Partnership (LLP) – Good for professional services.
3. Sole Proprietorship – Suitable for small-scale operations, but lacks funding opportunities.
๐ Best Option: A Private Limited Company is most preferred for startups aiming to raise funds and expand.
๐ How to Get a Startup India Certificate?
To apply under the Startup India Scheme, follow these steps:
1. Register your company as Pvt Ltd/LLP/Partnership.
2. Visit startupindia.gov.in and create an account.
3. Fill in the application form with business details.
4. Upload supporting documents like the incorporation certificate, pitch deck, etc.
5. Get recognized by DPIIT and receive your Startup India certificate.
๐ธ What is the Cost of Startup India Registration?
The Startup India recognition itself is free.
However, you will spend:
• โน7,000–โน15,000 for Private Limited registration (including government fees and professional charges).
• โน1,500–โน5,000 for PAN, TAN, and GST.
๐ How Much Money Do You Need to Start a Startup?
You don’t need crores!
Start with a lean budget:
• Registration + Legal: โน10,000–โน20,000
• Branding + Website: โน15,000–โน25,000
• Initial Inventory or MVP: โน50,000 onwards
Start small, grow fast!
๐ Benefits of Startup India Registration
1. Income tax exemption for 3 years under Section 80IAC
2. Self-certification for compliance (labor & environment laws)
3. Access to Government funding through the Fund of Funds
4. Faster patent and trademark filing
5. Easier public procurement and tenders
๐ฐ Government Loan & Funding Options
Under the MUDRA and Stand-Up India schemes, startups can get loans ranging from โน50,000 to โน10 lakh.
Also, SIDBI and other NBFCs offer equity support and collateral-free credit.
๐ Tax Benefits for Startups
Recognized startups enjoy:
• 3 years tax holiday (80IAC exemption)
• Capital gains exemption
• Angel tax exemption (Section 56(2)(viib))
These tax benefits help startups reinvest profits and grow faster.
๐ Can I Register My Company Myself?
Yes! If you're confident with online forms and legal terms, you can:
1. Apply through the MCA portal for company incorporation
2. Use the Startup India portal for recognition
3. Or, hire a CA or legal expert for smooth processing
Want to register your startup under the Startup India Scheme but not sure if you qualify? This blog will help you understand who can apply, what the eligibility criteria are, and how you can make the most of the scheme, all explained in simple words.
Let’s get started with your startup journey the right way!
โ
What is the Startup India Scheme?
Launched in 2016 by the Government of India, the Startup India Scheme aims to promote innovation, job creation, and entrepreneurship by offering tax exemptions, funding support, and regulatory relaxations.
๐งฉ Who is Eligible for the Startup India Scheme?
To qualify under the Startup India scheme, a business must meet the following conditions:
1. Company Age: Less than 10 years old from the date of incorporation.
2. Type of Entity: Must be a Private Limited Company, LLP, or Partnership Firm.
3. Annual Turnover: Not exceeding โน100 crore in any financial year since incorporation.
4. Innovation Focus: The startup should be working towards innovation, development, or improvement of products/services or processes.
5. DPIIT Recognition: Must be recognized by the Department for Promotion of Industry and Internal Trade (DPIIT).
๐ค Who is Eligible to Apply as an Entrepreneur?
Any Indian citizen over 18 years of age can apply for startup recognition, whether you're:
• A college student,
• A working professional,
• A government employee (Yes, but with NOC from the employer),
• Or even a retired person!
There’s no restriction on educational qualifications or gender. What matters is your idea and business model.
๐งพ Which Companies Can Register?
You can apply if your business is:
• A Private Limited Company registered under the Companies Act, 2013
• A Registered Partnership Firm under the Indian Partnership Act, 1932
• A Limited Liability Partnership (LLP) under the LLP Act, 2008
Sole proprietorships are not eligible for DPIIT recognition under this scheme.
๐ฏ What Qualifies as a Startup?
A business is considered a startup if it:
• Is focused on solving real-world problems using technology or innovation
• Has a scalable model for employment or wealth creation
• Is not formed by splitting or reconstructing an existing business
๐ How to Get a Startup Certificate?
1. Register your business on the MCA or the respective government portal.
2. Visit startupindia.gov.in and log in.
3. Fill out the DPIIT Recognition form with documents like:
o Certificate of incorporation
o Business pitch deck
o Details of directors and startup activities
4. Submit and track your application.
Once approved, you will receive a Startup India recognition certificate.
๐ฐ How Much is the Startup Subsidy?
While Startup India itself doesn’t offer direct subsidies, eligible startups can:
• Apply for tax exemptions
• Get support from State Startup Policies
• Access SIDBI Funds of Funds and other schemes like:
o MUDRA loans
o Credit Guarantee Fund
o Stand-up India scheme
๐ฅ Can a Normal Person Invest in Startups?
Yes! Through Angel Investment Platforms, Venture Capital Funds, or even crowdfunding websites, any eligible Indian resident or registered investor can invest in startups.
Just ensure KYC norms and SEBI regulations are followed.
๐ What is the Margin Percentage in a Startup India Loan?
Under government schemes like MUDRA or CGTMSE, startups may have to contribute a margin of 10% to 25%, depending on loan size and lender policies. Many schemes offer collateral-free loans with reduced interest rates for women and SC/ST entrepreneurs.
If you’ve ever wondered how startups get lakhs in funding without giving up equity or taking loans, this blog is for you! In simple language, we’ll explore the โน20 lakh grant for startups in India, eligibility, application process, and other schemes like NIDHI PRAYAS and Seed Fund.
๐ฏ What is the โน20 Lakh Startup Grant?
The โน20 lakh grant is offered under the Startup India Seed Fund Scheme (SISFS) by the Indian government. This is not a loan — it’s a grant to help early-stage startups develop a prototype, run trials, or test market-fit before approaching investors.
๐ Who is Eligible for the Seed Fund?
To apply under SISFS, the startup must:
Founders must be Indian citizens, and the startup must be registered in India.
๐ช What is Seed Money and Why is it Important?
Seed money is the initial capital to turn your idea into a working prototype. It helps you:
Most investors and banks want to see a working model, and this is where seed grants can make a big difference.
๐ฆ How Much Startup Subsidy is Available in India?
While subsidy differs from grants, here are some benefits under government schemes:
๐ฅ Who Offers This Grant?
Approved incubators are given funds to distribute. These incubators include IITs, NITs, IIMs, and other reputed institutions.
Search for eligible incubators on the official Startup India Seed Fund Portal.
๐ฑ What is the 10 Lakh Startup Grant?
In some cases, incubators or state governments also offer โน10 lakh grants as part of innovation challenges or university competitions. This is usually for:
๐ผ What is the Pradhan Mantri Yojana for Startups?
While there isn’t one specific PM Yojana named for startups, several government schemes fall under the broader umbrella of startup support:
๐งช What is the NIDHI PRAYAS Scheme?
NIDHI PRAYAS is run by the Department of Science and Technology (DST) to fund tech innovators. It gives:
Perfect for startups needing hardware or lab support!
๐ค Can I Invest in Startups as a Normal Person?
Yes, if you're a high-net-worth individual (HNI) or part of an angel network. Platforms like AngelList India and LetsVenture allow verified individuals to invest in early-stage startups.
However, grants like the โน20 lakh are non-equity and don’t require investors — it's government-funded.
๐ How Much Money Do You Need to Start a Startup?
You can begin with โน50,000–โน1 lakh for basic validation, but to build an MVP or product, you’ll typically need โน5–20 lakhs. This is where grants like SISFS become life-changing.