Our experience team will file a startup India Recognition application for your business. (Note- Taxwalla is not representative or in any way authorised by the Government of India. We are a private organisation and our fees are consulting fees. Govt department does not charge any fees or charge for the startup India Recognition process.)
Under the able leadership of Shri Narendra Modi, the Government of India launched this initiative on 16th January 2016. Startup India Recognition Certificate is issued by the Department for Promotion of Industry and Internal Trade (DPIIT) of the Government of India. Under these schemes, eligible companies can get recognised and can enjoy a host of tax benefits, easier compliances, IPR fast-tracking & more.
Benefits of STARTUP INDIA Recognition
Relaxation in public procurement norms – Recognised startups gets the exemption on Prior Turnover, Prior Experience and Earnest Money Deposits. DPIIT recognised startups can get listed on the Government e-marketplace -GeM to avail the benefits. Get registered on GeM by visiting - www.gem.gov.in/startup_runway.
Intellectual Property Rights – Startup India provide access to high-quality intellectual property services and resources such as fast-tracking patent application for examination and disposal. The government has set up a panel of facilitators to assist in IP application wherein government bears the cost of facilitators. Recognised startups are also provided with a rebate in government fees for patent and trademark applications.
Self-Certification under Labour & Environment Laws – Startups are allowed to self-certify their compliances under 6 labour and 3 environmental laws for a period of 3 to 5 years from the date of incorporation.
Faster Winding Up – Ministry of Corporate Affairs has notified Startups as ‘fast track firms’ enabling them to wind up operations within 90 days vis-a-vis 180 days for other companies. An insolvency professional shall be appointed for the Startup, who shall be in charge of the
company for liquidating its assets and paying its creditors within 6 months of applying in this regard.
Income Tax Exemptions – Recognised startups can apply for Section 80 IAC: Income Tax exemption for 3 out of 7 years.
Exemption for clause (viib) of sub-section (2) of section 56 of the Act - A DPIIT recognized Startup is eligible for exemption from the provisions of section 56(2) (viib) of the Income Tax Act. The Startup has to file a duly signed declaration in Form 2 to DPIIT {as per notification G.S.R. 127 (E)} to claim the exemption from the provisions of Section 56(2)(viib) of the Income Tax Act
Fund of funds for Startups – To provide equity funding support for the development and growth of innovation-driven enterprises, the Government has set aside a corpus fund of INR 10,000 crores managed by SIDBI. The Fund is like Fund of Funds, which means that the Government participates in the capital of SEBI registered Venture Funds, which invest twice the amount in Startups. The flow of funds is Government > SIDBI > Venture Capitals > Startups.
