Startup India is a project initiated by the Government of India to support and encourage new business startups in India by providing Tax Exemptions, Ease Compliances, Grants, Low Cost Funding, Credit Guarantee Funds etc. A new business setup may have questions like how to apply for registration under start-up India, Benefits of registration, Eligibility criteria, How to apply for funds and Tax exemptions etc.
▶️ Eligibility Criteria:
✔️ Entity should be incorporation as private limited company, or registered as a partnership firm or a LLP;
✔️ Turnover should be less than INR 100 Crores in any of the previous financial years;
✔️ An entity shall be considered as a startup up to 10 years from the date of its incorporation
✔️ The Startup should be working towards innovation/ improvement of existing products, services and processes and should have the potential to generate employment/ create wealth.
𝐴𝑛 𝑒𝑛𝑡𝑖𝑡𝑦 𝑓𝑜𝑟𝑚𝑒𝑑 𝑏𝑦 𝑠𝑝𝑙𝑖𝑡𝑡𝑖𝑛𝑔 𝑢𝑝 𝑜𝑟 𝑟𝑒𝑐𝑜𝑛𝑠𝑡𝑟𝑢𝑐𝑡𝑖𝑜𝑛 𝑜𝑓 𝑎𝑛 𝑒𝑥𝑖𝑠𝑡𝑖𝑛𝑔 𝑏𝑢𝑠𝑖𝑛𝑒𝑠𝑠 𝑠ℎ𝑎𝑙𝑙 𝑛𝑜𝑡 𝑏𝑒 𝑐𝑜𝑛𝑠𝑖𝑑𝑒𝑟𝑒𝑑 𝑎 “𝑆𝑡𝑎𝑟𝑡𝑢𝑝”.
▶️ Benefits
✔️ Tax exemption under section 80 IAC of the Income Tax Act. Post getting clearance for Tax exemption, the Startup can avail tax holiday for 3 consecutive financial years out of its first ten years since incorporation.
✔️ Angel Tax Exemption.
✔️ Self Certification and compliance under 9 environmental & labour laws;
✔️ Exemption from requirement of Earnest Money Deposit in government tenders
✔️ Fast track & up to 80% rebate in filling patents.
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