All About Startup India Scheme Yojana
- Under government scheme, how will I be recognised as a ‘start-up’?
You will be considered as start-up if your sole proprietorship or partnership or liability partnership company fulfils these criteria.
- Your company should not be older than 5 years
- The annual turnover of your company should not exceed Rs. 25 Cr.
- Your production of goods and services should involve development, innovation, deployment, commercialisation and new technology driven products and services.
- If your company is a part of already existing business then it will not be considered as start-up.
- A start-up should not be part of any public unit or public undertakings.
- For how long I can call myself a start-up?
Other than the time period and turnover mentioned in Q. 1, one has to intimate DIPP within 21 days to register him / her as a start-up.
- I have an existing firm, can I register under ‘’start up India’ mobile app?
Yes, you can. If your company fulfils the criteria mentioned in the Q. 1 then you can easily register under ‘start up India’ mobile app.
- How do I get the benefits from government schemes as a start-up?
To get the benefits from governmental schemes you must have registered your company as a start up under the start-up India mobile app or under the portal. Once verified then you can enjoy the benefits except for the tax benefits.
For tax benefits you are required to take out a certificate from Inter-ministerial Board of Certification.
- For an existing entity how long it takes to get the certificate?
For an existing entity if the application is successfully submitted with proper documents then it takes one complete working day to get the certificate. That is if there is no holiday in between then an entity can get the certificate within a day time.
- I am an entity and my start-up is still not incorporated. How can I register myself as private limited or partnership firm or limited liability partnership firm?
There are two ways through which you can register your company under Start-up India portal or mobile app. You can use MCA or the existing processes and then register with the start-up India portal.
Secondly, you can register with the start-up India mobile app or portal through seamless process. However this process will be available in the 2nd phase of the app / portal launch.
- The application is available online. Is there any way that I can submit the printed copy to any offline office or somewhere?
No, there is no such provision of offline form submission. The application must be downloaded online, filled up by the applicant and submit it online as well with relevant documents.
- What are the documents needed to register under start-up India portal / mobile app?
The important and necessary documents needed for registration are:
- Letter of support from any central or state government funded incubator as a part of any schemes by government to promote innovation. OR
- Recommendation from government supported incubator in a post graduate college in India in a specific format set by the DIPP. OR
- Recommendation from government supported incubator (with regards to innovation promotion) in a specific format set by the DIPP. OR
- Letter of funding of not less than 20 percent in equity by any Incubation Fund/ Angel Fund/ Private Equity Fund/ Accelerator/ Angel Network duly registered with Securities and Exchange Board of India that endorses innovative nature of the business. Department of Industrial Policy and Promotion may include any such fund in a negative list for such reasons as it may deem fit. OR
- Patent filed and published in Indian Patent Office in the fields of the nature of the business is being promoted. OR
- Letter of funding by the central or state government as part of specific scheme or promoting innovation.
- After registering successfully how can I get the certification? Can I get it right away?
Yes, once the registration is done successfully and the other verification process is done, you can download the certification of recognition at that time.
- Can I change or rectify anything in the registration form after submission?
Yes, you can. As for example if you select ‘No’ in the ‘Tax benefit’ section then after submission of the form you can change the option as ‘yes’ later. This can be happened if there are huge benefits like tax benefits. Once the benefits of tax are availed the forms will be gone under the supervision of Inter-ministerial board.
- If my application is rejected by any incubator can I apply again in the same incubator or I need to apply to somewhere else?
Yes, if your application gets rejected then you can again apply to the same incubator also you can apply to other incubator as well.
- During the registration process can I provide more than one mobile numbers?
During registration the authority and portal keeps sending One Time Passwords to the registered mobile number. So it would be recommended to provide one mobile number for each applicant so that the OTP can be sent to one number as it is very confidential.
- I don’t have a PAN card; can I still be eligible for the registration?
Yes, even when you don’t have PAN Card you can go for registration. But it is recommended to have PAN Card before the registration because each applicant is an individual tax payer.
- Is there any specific format to obtain the recommendation letter?
Yes, there is a specific format to obtain the recommendation letter. The format is given in the start up India portal in details.
- Whose names will be constituted in the Inter-Ministerial Board?
There will be three concerning people in the Inter-Ministerial Board:
- Representative of Department of Bio-technology
- Representative of Department of Science and Technology
- Joint Secretary, Department of Industrial Policy and Promotion
- I filed a patent and it has been published; what document I need to support the registration as start-up?
The photocopy of the published patent file will be sufficient as supportive document for the registration.
- I have a one person company (OPC) can I still register under the Start-up India as start-ups?
Yes, you can register as One Person Company if you fulfil the criteria mentioned in Q. 1.
- I am an existing entity, in case of tax benefits how long it takes to get the certification from the Inter – Ministerial Board?
In case of availing tax benefits, the certification from the Inter-Ministerial Board takes 10 to 25 working days. These days exclude the holidays and Sundays.
- I don’t have the evidence like patents or funding from registered VCs or incubators, can I still register under Start-up India Portal / Mobile App?
No, one has to have at least one out of 6 documents mentioned in the Q. 8.
- How does the Inter-Ministerial Board review the applications under the tax benefits?
The authority reviews the supportive documents first to know whether the entity is eligible to apply for the tax benefits or not. If the supportive documents are fine and clear then the review process will be over.
For the Incubators:
- How do we know whether we are the authorised incubators to provide recommendations / endorsement / support letters or not?
According to the notification G. S. R. 180(E) dated 17th February, 2016, an incubator will be authorised to provide recommendation / endorsement / support letter if it belongs to one of the following categories:
- Incubator funded by central or state government of India and recognised by DIPP.
- Incubator funded by State or Government of India as the part of any specific government scheme and such
- Incubator established in post graduation colleges
- What are the procedures to enlist our incubator’s name in the lists under Start-up India Portal?
There is no such specific procedure to enlist your incubator’s name. You must apply through an application letter to the Start up India Portal. Once the application is reviewed, verified and accepted your incubator’s name will be enlisted under DIPP.
- Do we have to follow any specific format to issue the recommendation from our incubator?
Yes, there is a specific format that must be presented in the recommendation / endorsement / support letter. The format is available in the Start up India Portal.
- Do we need to charge anything to provide recommendation / endorsement / support letter to the start ups under start up India?
Yes. The recommendation letter is chargeable. The maximum charge an incubator can ask for the recommendation / endorsement / support letter is Rs. 5000/- per start up. However if there is a need of extremely knowledgeable and expert panel to review the project or products or services produced by the start up or their innovativeness then the price can be reached to Rs. 10, 000/- per start up.
- What are the points we need to review before issuing the recommendation / endorsement / support letter?
The incubator needs to verify / review some points before issuing the recommendation / endorsement / support letter to the start up. The incubator must review whether the entity is aiming at development and promotion of:
- New and innovative product or services or process OR
- Significant improvement of products, services and process that already exists and adds more value to customer satisfaction or workflow in the economy.
On the other there are some points which are not considered while reviewing the project:
- If the product or service or process does not promote commercialization or does not have any potential.
- Undifferentiated service or product or process
- Those products or services or processes that have minimum or no incremental value or opportunity that adds value to customer satisfaction or workflow.
- Do we need some expert or authorised person to issue / sign the recommendation / endorsement / support letter?
You can appoint or designate any expert to issue the recommendation / support / endorsement letter to the start ups. The authority always encourages for this.
- Once the recommendation / endorsement / support letter is issued, who will upload the letter to the start up India portal?
The entity or the start up owner(s) who will receive the letter will upload it in the start up India portal / mobile app. This needs to be done by the entity at the time of registering for the recognition.
- There are some entities that are not incubated with our incubators. What are the procedures to receive applications from them?
There is a specific format that has been released which can be followed to receive the application from the entities that are not incubated in incubators. However the incubators can also change or modify the format according to the requirement.
- Can we endorse / recommend ideas that are not listed in our incubator?
Yes, you can. An incubator can go for any list under the Start up India Portal, even those which are not incubated in the incubator. The main aim is to encourage the business ideas that involve the commercialization and innovation and a valid business idea.
- Being an incubator or recommender, are we liable for anything?
The recommender is liable for the recommendation provided to the entity. Before providing the recommendation the incubator must have double checked the documents and the background of the entity. If there is any loopholes in the examination or after providing the recommendation or endorsement if the start up violets any rules or regulation then the incubator can be blacklisted. At the worse the government benefits or funding can be withdrawn as well.
For Funding Bodies:
- How do we know whether we are the eligible funding bodies or not? Who fall under funding bodies?
- Angel Funds
- Alternative Investment Funds
- Seed Funds
- Venture Capital Funds
These are the funds registered under SEBI will be eligible to issue recommendation / endorsement / support letter to the entities in which minimum 20% of the equity will be funded by them. This is as per the notification number G. S. R. 180(E) dated 17th February 2016. The list of VCF and AIFs are available in the Start up India Portal.
- Can the funding body recommend / endorse any idea that hasn’t been funded by the body before?
No, in that case the funding body can’t do that. They can only endorse / recommend those who have minimum of 20% equity are funded by the recommending funding body.
- Who will issue the recommendation / endorsement / support letter under funding bodies?
You can designate any expert or experienced officer to sign / issue the letters to the entity and also share the same with the DIPP.
- Is there any specific format to follow by the funding bodies to issue recommendation / endorsement / support letters to the entity?
Yes, there is a specific format for issuing the letters. The format is published on the start up India portal.
- Who will upload the recommendation / support/ endorsement letter to the portal?
At the time of applying for the recognition, the entity has to upload the necessary letter to the start up India portal.
- What the aspects those are to be reviewed before issuing / signing the recommendation / endorsement / support letter to the entities?
The funding agency or body needs to review those projects that are involved in commercialisation, development, deployment and innovation of technology driven products or services or processes of the new products or services or processes. Also the need to review the projects that involve in improvement of existing products / services / processes which adds value to the customers’ satisfaction and workflow.
- Are we, as funding agency or body, liable for anything?
There are two liabilities that funding agencies might bear:
- Without proper validation or verification of the documents and background of the entity if the recommendation of endorsement letters is being issued to entities then the funding agency can be blacklisted.
- Without funded 20% equity of the entity if the funding body provides the recommendation / endorsement letter then the DIPP can file criminal case against the funding agency.