A startup is a newly established business, usually small, started by 1 or a group of individuals. What differentiates it from other new businesses is that a startup offers a new product or service that is not being given elsewhere in the same way. The keyword is innovation. The business either develops a new product/ service or redevelops a current product/service into something better.

Startups are becoming very popular in India. In order to develop the Indian economy and attract talented entrepreneurs, the Government of India, under the leadership of PM Narendra Modi, has started and promoted the Startup India initiative to recognize and promote startups.

Step 1: Incorporate your Business

Step 2: Register with Startup India

Step 3: Get DPIIT Recognition

Step 4: Recognition Application

Step 5: Documents for Registration

Step 6: Recognition Number

Step 7: Other Areas

Startup India has changed the procedure of registration since its inception. It has exempted most of the previous requirements now. Many documents which were required to be filed previously are waived off. The list of documents that are not required to be filed at the time of the registration are-

• Letter of Recommendations
• Letter of funding
• Sanction Letters
• Udyog Aadhar
• MSME Certificate
• GST Certificate

• The Fund of Funds shall be managed by the Small Industries Development Bank of India (SIDBI)
• Life Insurance Corporation (LIC) shall be a co-investor in the Fund of Funds
• The Fund of Funds shall contribute to a maximum of 50% of the SEBI registered Venture Funds (“daughter funds”). In order to be able to receive the contribution, the daughter fund should have already raised the balance 50%. The Fund of Funds shall have representatives on the board of the venture fund based on the contribution made.
• The Fund shall ensure support to a broad mix of sectors such as manufacturing, agriculture, health, education, etc.
• It’s very easy to register as a startup thanks to the various government initiatives. However, you can focus on your key area while we at ClearTax help you from start to finish right from incorporating your company to getting your startup recognition. Do visit our website to know more about startup services.