Starting a new business in India does not necessarily mean making repeated visits to government offices. The Startup India initiative provides an online route for eligible businesses to seek official startup recognition from the Department for Promotion of Industry and Internal Trade (DPIIT). The process involves first establishing the business entity and then applying for DPIIT recognition through the prescribed online system.
Here is a step-by-step look at how the startup registration and recognition process works.
1. Incorporate or Register the Business
The first step is to legally establish the business. For DPIIT startup recognition, the entity can be incorporated as a Private Limited Company or registered as a Partnership Firm, Limited Liability Partnership (LLP), or eligible Cooperative Society. The required incorporation or registration process must be completed before applying for startup recognition.
2. Create an Account and Apply for Startup Recognition
After the business has been incorporated or registered, the next step is to begin the startup recognition process. The official Startup India platform provides access to the recognition process, which is currently available through the National Single Window System (NSWS).
Applicants need to create an account on NSWS and add the relevant “Registration as a Startup” application under the Central Approvals section before filling out and submitting the form.
3. Apply for DPIIT Recognition
DPIIT recognition is an important part of the Startup India process. Eligible startups can apply for recognition online and may become eligible for benefits such as certain tax benefits, easier compliance requirements and faster IPR-related processes, subject to the applicable conditions.
The application requires information about the entity and its business activities. Applicants also need to explain how the startup is working towards innovation, development or improvement of products, processes or services, or how its business model has potential for employment generation or wealth creation.
4. Submit the Required Details and Documents
While completing the recognition application, applicants need to provide details such as the entity’s incorporation or registration information, PAN, business brief and information about its directors or partners. The application also requires supporting documentation, including proof of legal existence of the entity.
The information submitted should be accurate and complete before the application is finally submitted.
5. Verification and Recognition Certificate
After submission, the application and supporting information are subject to verification. Once the startup receives recognition, a system-generated, verifiable certificate of recognition can be downloaded. The Startup India portal states that recognition is typically issued within two working days after successful submission, although the actual process depends on verification and the completeness of the application.
It is also important to note that the current eligibility rules have been updated. According to the Startup India portal, the turnover threshold for general startup recognition is now ₹200 crore, while DeepTech startups have a separate ₹300 crore threshold, subject to the applicable eligibility conditions.