Start-ups are the most important performance indicator of a country’s emerging economy. Brands like BookMyShow, Zomato, Food panda, and Swiggy have demonstrated how a startup may gain significant success in a short period of time in India. However, not all entrepreneurs are fortunate enough to receive significant capital. That is why the majority of Indian companies fail to make it in the market.
To address this issue and assist startups, the government created a program in which an entrepreneur can register their startup with DIPP (Department of Industrial Policy and Promotion). This will assist startups both financially and non-financially, however, there are some requirements that must be met in order to register for this program. Before going towards DIPP Startup registration, let’s have a quick look at what is a Startup and what is DIPP Startup is.
What is a Startup?
Startup India is the government of India’s flagship initiative aimed at catalyzing startup culture and creating a robust and inclusive ecosystem for innovation and entrepreneurship in India. Since its inception on January 16, 2016, Startup India has launched a number of initiatives aimed at assisting entrepreneurs and changing India into a country of job creators rather than job seekers.
What is a DIPP Startup?
The department of industrial policy and promotion (DIPP) recognizes startups, and the inter-ministerial board of certification approves tax incentives. Startups recognized by DIPP can make use of intellectual property rights (IPR) related benefits such as IPR fast-tracking and more. The following article gives a quick overview of the DIPP Certificate of Recognition for Startups. Now, the government has renamed the department of industrial policy and promotion (DIPP) to the Department for Promotion of
The entity which can register in a Startup India Scheme
- Businesses whose turnover is less than INR 100 crore in the previous year can be DIPP/DPIIT registered under Startup India Scheme.
- An entity can be registered as a Private Limited Company or Partnership Firm or Limited Liability Partnership.
- A startup is defined as an operation that is innovative or makes significant changes to existing services or products traded in the market and can apply for DIPP Startup registration.
- A startup is defined as an entrepreneur whose business has not been in operation for more than ten years from the date of incorporation.
Documents required for Startup Registration with DIPP
- Certificate of Incorporation for Business.
- Partnership deed for partnership firm and Limited Liability Partnership, in case of a company MOA and AOA is required.
- All the information related to the directors/partners/members/, along with their photo ID.
- Entity’s website link or social profile.
- If the entity has received any cash from investors, information about the funds needs to be mentioned.
- Such information must be submitted if the entity has won an award, recognition, or certificate.
Advantages of getting recognized Startup by Department of Industrial Policy and Promotion (DIPP)
A refund on Trademark and Patent application expenses will be available to the recognized Startup. Such an entity will be eligible for a 50 percent Trademark application cost reduction and an 80 percent Patent application fee reduction. In addition, the patent application will be processed promptly. The government hosts a Startup Fest where all of the registered startups can meet and network. They can share knowledge and build brand value.
To apply for government tenders, the candidate must meet certain requirements. It must be anything like a minimum capital requirement, a minimum turnover requirement, or a minimum experience requirement, for example. However, if the entity is a startup, it can apply for tenders even if it does not meet the standards. They’ve even been spared from having to submit Earnest Money Deposits (EMD) when bidding on government contracts. The government has established a fund of funds that will assist entrepreneurs in obtaining funding.
The registered entity will be handled for winding up on a priority basis within 90 days of the application date. The Government e-Marketplace (GeM) is an online procurement platform used by government agencies to purchase goods and services. Startups that are DPIIT-registered can register as merchants on GeM and market their products and services directly to government agencies.
FAQs on Startup Registration with DIPP/DPIIT
What is the Full form of DIPP?
DIPP/DPIIT stands for “Department of Industrial Policy and Promotion”, under which a Startup can register, and get financial, non-financial help to run their business.
Are DPIIT and DIPP is same?
Yes, DIPP/DPIIT and DIPP are the same. The department of Industrial Policy and Promotion (DIPP) is renamed as Department for Promotion of Industry and Internal Trade DIPP/DPIIT.
If a company or organization does not have a PAN. Is it possible to register my company as a “Startup”?
Yes. A Startup can be registered even if it does not have a PAN. However, because each entity is a separate taxable person, it is recommended that a valid PAN be provided at the time of registration.
Which are the benefits I will get if I registered my startup with DPIIT?
- Incubation and Industry-Academia Partnerships — numerous incubators and innovation laboratories, as well as events, contests, and grants, have been established.
- Simplicity and guidance — Easier compliance, a smoother exit procedure for unsuccessful startups, legal assistance, patent application tracking, and a website to eliminate information asymmetry.
- Exemptions from income and capital gains taxes for eligible businesses, as well as a fund of funds to inject more cash into the startup ecosystem and a credit guarantee scheme.
What are the Eligibility criteria to register a Startup with DPIIT?
- The startup should be registered as a limited liability partnership or a partnership firm, or it should be formed as a private limited company.
- An entity is considered a startup for the first ten years after its incorporation. If your startup falls under this criteria then you are eligible to register your Startup with DPI.
- In any of the previous financial years, turnover should have been less than INR 100 crores.
- The startup should be focused on improving and innovating existing products, services, and processes, as well as having the potential to create jobs and income.
The Startups India Scheme helps to boost the economy by producing a significant number of jobs across all sectors. The program is designed to encourage businesses to explore modern and innovative company concepts that might otherwise be unable to do so owing to a lack of resources. As soon as a company joins the DIPP scheme, it will help entrepreneurs with financial and non-financial help for their Startups.