Startup Registration Services

A startup is defined by the Department for Promotion of Industry and Internal Trade (DPIIT) as an entity that is incorporated in India is less than 10 years old and has an annual turnover of less than ₹100 crores in any given financial year.

The Startup India Initiative is a government initiative that hopes to inspire entrepreneurship by providing them with tax benefits, an easy incorporation process, and access to various funding opportunities. And this startup framework is mentioned under the Companies Act, of 2013 and the Limited Liability Partnership Act, 2008.

As per Section 2(40) of the Companies Act, 2013, a startup must be engaged in innovation, development, or improvement of products or processes, or have a scalable business model with a high potential for job creation or wealth generation.

Startups that are recognised under the DPIIT can get tax benefits under Section 80-IAC of the Income Tax Act for three consecutive years, and along with this, you get an exemption from the angel tax under Section 56(2)(viib).

In recent years, we can see that India's start-up ecosystem has grown into the third-largest globally, with over 90,000 DPIIT-recognised startups as of 2024. Startups in India have collectively created over 16 lakh jobs, according to government reports.

By registering your startup you not only secure these benefits but also legitimise your business in the eyes of investors, customers, and regulatory authorities. By formalising your entity, you position your business for growth, funding, and innovation-driven success.

Eligibility Criteria for Startup India Registration

To qualify for the Startup India Registration under DPIIT, your business must meet particular requirements that ensure it contributes to innovation, job creation, and economic development. These criteria are formulated under the legal framework to maintain transparency and fairness. Below are the detailed eligibility conditions:

Key Eligibility Criteria

• Business Entity Type: The entity must be incorporated as a Private Limited Company, a Limited Liability Partnership (LLP), or a Partnership Firm under the applicable laws.
• Age of the Business: The business must not be older than 10 years from the date of incorporation.
• Annual Turnover Limit: The turnover of the entity must not exceed ₹100 crores in any financial year since its incorporation.
• Original Entity: The business must not have been formed by splitting up or reconstructing an existing entity.
• DPIIT Recognition: The entity must apply for recognition under the DPIIT to access benefits such as tax exemptions and government schemes.
• Innovative Focus: The business should contribute to sectors like technology, e-commerce, green energy, or healthcare, showcasing uniqueness in its offerings.
• Intellectual Property: The entity should have applied for or secured a patent, trademark, or design, substantiating its innovative edge.
• Legal Compliance: The business must comply with the regulations set under the Companies Act, 2013 or the Limited Liability Partnership Act, 2008.

Why Choose Benchmark for Your Startup Registration Service?

At Benchmark, we specialise in offering expert-driven solutions made to meet the legal, technical, and strategic needs of your startup. Our services are created to streamline your startup registration process while providing compliance with all regulatory frameworks. With years of experience and a proven track record, Benchmark is your trusted partner in achieving DPIIT recognition and accessing government benefits. Here are few reasons why you should choose us:

Our Services

At Benchmark, we try to give you a comprehensive suite of services designed to simplify your startup registration process and address every technical and legal requirement. Here is a detailed list of our service offerings under startup registration:

• Preparation and filing of incorporation documents for Private Limited Companies, LLPs, or Partnership Firms.
• Assistance in obtaining DPIIT recognition certificate for Startup India benefits.
• Drafting and filing of Memorandum of Association (MOA) and Articles of Association (AOA).
• Filing of applications for Angel Tax Exemption under Section 56(2)(viib).
• Guidance on the preparation of documents proving innovation, such as patents, designs, and funding approvals.
• Filing and processing of forms for name approval and DIN allotment.
• Advisory on setting up Intellectual Property (IP) protection, including trademarks, copyrights, and patents.
• Registration under applicable government schemes such as MSME (Udyam) and Startup India Seed Fund Scheme.
• End-to-end support for applying for and obtaining government tenders and contracts.
• Advisory on regulatory compliance specific to labour laws, environmental laws, and foreign direct investment (FDI) regulations.
• Assistance in securing eligibility for funding schemes and connections with venture capital networks.
• Review and audit of incorporation and registration documents for error-free submissions.
• Support in obtaining relevant sector-specific licences and permits required for operations.

Different Classes of Startups and Their Registration Needs

Startups in India operate across various industries, each requiring specific registrations and compliance measures. Below is a detailed table with examples to better illustrate the unique needs of different startup classes.

Documents Required for Startup Registration

To successfully register your startup under the Startup India Initiative and obtain DPIIT recognition, it is essential to prepare and submit the required documents accurately. Below is a list of the key documents you will need for startup registration:

Step-by-Step Startup Registration Process

Registering your startup under the Startup India Initiative involves several well-defined steps. Each stage ensures your business complies with legal requirements and qualifies for the benefits associated with DPIIT recognition. Below is a detailed step by step process to register your startup in India:

Post-Compliance Issues to Avoid

After obtaining your Startup India Registration and DPIIT recognition, maintaining compliance is crucial to retain the benefits and avoid legal complications. Neglecting post-registration compliance can result in penalties, loss of recognition, and operational disruptions. Below are the key compliance issues startups must address:

• Non-compliance with Income Tax Act provisions, such as timely submission of tax returns.
• Irregularities in GST filings and monthly/quarterly tax payments.
• Non-adherence to labour laws, including EPF and ESIC contributions (if applicable).
• Mismanagement of statutory books and records, such as minutes of meetings and financial records.
• Delay in filing changes to company structure, such as directors or shareholding, with the Registrar of Companies (RoC).
• Non-renewal or lapse of intellectual property registrations, including trademarks and patents.
• Inadequate handling of employee contracts and non-compliance with employment-related laws.
• Ignoring updates required for DPIIT recognition, such as reporting material changes in operations or ownership.

Conclusion

The first step in creating a scalable and legally compliant firm is registering your startup. Your startup can access a multitude of advantages with DPIIT accreditation, including financial opportunities, tax exemptions, and increased market reputation. Proper registration and adherence to compliance requirements can significantly impact your business's growth trajectory and long-term success.

At Benchmark, we are committed to guiding startups like yours through every step of the registration process and beyond. Whether it is handling the legal filings, securing intellectual property rights, or ensuring post-registration compliance, our team of experts is here to support you.

FAQs

Can a foreigner start a business in India and register as a startup?

Yes, foreign nationals can start a business in India, but you must comply with FDI regulations and incorporate your entity as per Indian laws. DPIIT recognition is available for businesses with foreign ownership if you meet the eligibility criteria.

Do startups need to renew their DPIIT recognition?

No, DPIIT recognition does not require annual renewal. However, startups must update their status with any changes to operations, structure, or ownership.

Is registration under the Startup India Initiative mandatory for all startups?

No, it is not mandatory. However, registering under the initiative provides access to significant benefits, including tax exemptions, funding support, and exclusive opportunities under government schemes.

How long does it take to complete the startup registration process?

The entire registration process, including DPIIT recognition, typically takes 10–15 business days, provided all required documents are accurate and complete at the time of submission.

What happens if a registered startup exceeds the turnover limit of ₹100 crores?

Once the turnover exceeds ₹100 crores, the startup will no longer qualify for the benefits under the Startup India Initiative. However, it can continue operating as a recognised business entity under applicable laws.