START UP- ELIGIBILITY AND ADVANTAGES
Start up eligibility and advantages- Startup India is one of the great initiatives taken by the Government of India in January 2016. This will help innovation and support to the early birds having big dreams. Further, Startups in India provide substantial opportunities for employment to the worker and it definitely helps in the development of India. Startups having a worth of more than 1 Billion are known as unicorns. Currently, India has 23 such Unicons.
Through the benefits under different schemes as issued by the Government of India under Startup initiatives, the new companies get the benefit to earn, grow, and scale their operation throughout India as well as outside India. Companies registered under the laws of India not older than 10 years and having a turnover of 100 crores in any preceding financial year can apply for taking recognition as Startup. The Startups must working towards development, innovation or services driven through intellectual property and technology.
Hence, one can say that the following conditions must be fulfilled in order to get the recognition of Startup:
- It shall be a private limited company/ limited liability partnership or partnership firm.
- Turnover of the entities as defined above shall be less than 100 crores in any financial years from the date of its incorporation.
- It must be working towards some innovation and or development ie., it must be adding value to customer and commercially.
It is to be noted that splitting of business or reconstruction of business shall not be recognised as Startup.
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ADVANTAGES FOR BUSINESS UNDER START-UP INDIA
- Straight away 3 years benefit from paying Income Tax to the Income Tax Department.
- Reduction of govt. fees upto 80% while filing of application for patent registration.
- Most compliance can be done through Self-certification compliance
- Easy exit route under IBC code
- They can directly supply material to Govt. as well through tenders, they are being provided preference by the Government. The same can be provided through GEM portal.
- There are different scheme as well wherein the government initiate some scheme and only the Startup can participate
Further, govt. has also created a Start-up India Hub through which entrepreneurs can resolve all the issues which they are having while doing business. The same can be done through email as well as mobile phone.
Once you fulfil above requirement you can apply for registration under Startup scheme.