INTRODUCTION

A startup is a newly business setup that is small in nature and initiated by single or a group of individuals. What makes the startup different from other businesses is that a startup presents a new product or service that is not in present at some other place in the same manner. The base of startup is modernisation and innovation. The enterprise which indulge in developing the new product or service or redevelop the current into something better is signifies as startup.

Eligibility Criteria for startup recognition

• Upto a period of 10 years from the date of incorporation, if it is integrated as a private company (as defined in the companies act, 2013) or a limited liability partnership (under the LLP act, 2008) or can say registered as a partnership firm under the provision of section 59 of the Indian partnership act, 1932.
• An enterprise shall be consider as a startup only up to ten years from the date of its registration
• Turnover of the entity since incorporation shall be less than one hundred crore rupees for any of the previous financial years.
• Entity is working in the direction of innovation, development or enhancement of products or processes or services, or if it is a scalable enterprise model with a high manageable of employment generation or can say creation of wealth.
• An entity must be newly formed or if in case it’s being registered by way of splitting up or renewal of an existing one then it shall not be considered in ‘Startup’.

Benefit of startup India recognition in India

Neusource startup minds India limited offers company registration services in India. We‘ve a team of multi-disciplinary expertise’s who can guide and assist you thru the whole process of fixing a startupcompany in India. supported your business model we recommend the sort of company registration which is suitable for your business, also, we will assist you within the startup India company registration process, from start to finish. Startup recognition is an initiative of the government of India, and therefore the benefit of startup India recognition is that the promotion of startups, generation of employment, and wealth creation. Also under the Startup India Scheme, another benefit of startup India recognition is that eligible organizations could get recognized as Startups by DPIIT, so on access a number of tax benefits, easier compliance, IPR fast-tracking and lots of more.

Make in India is making mission into Mission possible

We are providing startup Indiacompany registration services in India operated our branches in Delhi, Lucknow, Mumbai and Hyderabad. We at Neusource startup minds India limited want to create a world- class ecosystem in India which will identify, nurture and support the fashionable age startups; built by Indians for the planet so we are helping in registering startup India with proper guidance. We work closely with various stake-holders like governments; academia and industry to assist young entrepreneurs build and grow world-class startups.

Tax exemptions in startup India plan

• Startup India tax exemption under section 80 IAC says that a startup may apply for tax exemption after being registered by DPIIT. DPIIT registration certificate and approval of inter-ministerial board allows the startup to avail tax excursion for three consecutive financial years out of its first ten years since incorporation. One entity must be eligible for this exemption if they are incorporated in form of private limited or LLP after 01 Apr, 2016 and they got the certificate of recognised startup.
• Tax Exemption under section 56 of the income tax act (Angel Tax)- Unlisted companies raise the capital by way of issuing the shares and the share prices is more than FMV of share sold. Entity after getting registration as startup is eligible to apply for angel tax exemption. An entity must be recognised by a department for promotion of industry and internal trade and the cumulative amount of paid-up share capital and share premium of the startup must not exceed Rs 25 crore after the anticipated share issue.

Application for tax exemption procedure after recognised by DIPP

• Make signup and create login credentials on the startup India portal.
• One has to make an application for startup recognition which is pre-requisite for the next tax holiday request. On positive validation and approval of application, the startup shall obtain a "certificate of recognition" with DIPP number.
• From now the registered establishment are eligible to get tax benefit or tax holiday after the approval from IMB (Inter-ministerial Board) and the following landmark is to make an application u/s 80-IAC online.
• The application shall be examined for uniqueness, innovation, scalability and significance of sector and other parameters by using the "Technical Agency" who shall put up the case within the next meeting. Before this stage, if some clarification is required to be sought, the utility is moved for resubmission and therefore the query is communicated through email. Each startup gets three probabilities of resubmissions which include the primary utility made.
• On approval from IMB in its assembly comprising of various officials, a "certificate of eligibility" is issued to the startup or the application is rejected.
• DPIIT number with details of startup application and other tax benefit certificate details is to be feed into ITR at the time of claiming exemption.

Rewards to eligible startup under startup India program

• 3 year tax excursion in a block of seven years The startup registered after April 1, 2016, is eligible for getting a hundred percent tax rebate on profit for the time period of 3 years in a total of 7 years but annual turnover must not exceed 25 crore in any of monetary year.
• Exempted long term capital gain tax Section 54 EE of income tax is introduced to exempt taxes on a long term capital gain if such a long-term capital obtains or a phase thereof is invested in a fund notified by using Central Government inside a length of six months from the date of transfer of the asset. The most amounts that can be invested in the long-term specific asset are Rs 50 lakh. Such quantity shall be continued to be invested in the targeted fund for duration of three years. If withdrawn before three years, then exemption will be revoked in the year in which money is withdrawn.
• If investment above the fair market value The authority has exempted the tax being levied on investments above the fair market value in eligible start-ups. This must be made by domestic angel investors or family but must not be registered as venture capital funds. If investment done by incubators then also it’s exempt but it must be above the fair market price.