Company registration for a startup is a newly established business that is small and started by 1 or a group of individuals. The startup offers a new product or service that is not being offered anywhere else in the same manner. The keyword is innovation. The government of India is starting and promoting the Startup India initiative to recognize and promote Startups.

The first step in starting a new business in India is to get the company registered. Startups have to choose between the different types of company structures based on their activities, number of members, etc. In this blog, we will be understanding the process, essential documents required and registration fees.

What Is the Process of Company Registration of a Startup Under Startup India?

Startups are evolving as the most popular form of business in India. In order to promote the innovative ideas of the young generation, the government of India under the leadership of PM Narendra Modi has developed and promoted the Startup India initiative. The following are the steps to register the startups:

Step 1: Incorporate your business

Step 2: Register with Startup India

Step 3: Get DPIIT Recognition i.e., Department for promotion of Industry and Internal Trade.

Step 4: Recognition Application

Step 5: Documents for registration

Step 6: Recognition number

Step 7: Other areas like Patent, trademark registration, Funding, tax exemption, and self-certification under employment and labor laws.

What Are the Benefits Provided Under Startup India?

The MCA gov in company registration is the official portal for the registration of companies and the following are the benefits for a startup in India as follows:

• Simple Process –

The government of India has introduced a mobile app as well as a website for easy registration for startups.

• Reduction in cost –

The government gives the list of facilitators of patents and other intellectual property. They will provide high-quality intellectual property rights services including examination of patents at lower fees.

• Easy access to funds –

A huge amount of fund is set up by the government to provide funds to startups as venture capital.

 

• Apply for tenders –

Startups can apply for government tenders

• R & D facilities –

There is new research and development facility provided with seven new research parks will be set up. By providing the company registration details you can complete the research faster.

• No time-consuming compliances –

The compliances have been made easy for startups to save both time and money. It shall be allowed to self-certify compliance with 9 labor and 3 environment laws.

• Tax saving for investors –

The capital gain invested in the venture funds setups by the government will get an exemption from capital gains.

• Choose your investor –

After this plan, the startups will have the option to choose between the VCs, giving them the liability to choose their investors.

• Easy exit –

A startup can shut the business within 90 days from the date of application of winding up.

What Are The Tax Exemptions Allowed To Startups Under Startup India Program?

The following are the tax exemptions that are allowed for to company registration process in India for eligible startups:

• • Three-year tax holiday in a bunch of seven years –

The startups established between April 2016 till March 2021 were eligible for this scheme. The budget 2021 has extended the eligibility to 31^st March 2022.

• • Tax Exemption saved on long-term capital gains –

A new section has been inserted in the Income Tax Act for eligible startups to exempt their tax on a long-term capital gain within a period of six months from the date of transfer of the asset.

• • Tax exemption on investments above the market value–

The government has exempted the tax levied on investments on and above the fair market value in eligible startups. The company registration fees depend on the share capital of the startups.

• • Tax exemption to Individual/HUF on investment of long-term capital gain in equity shares of eligible shares of startups –

This section has been amended to include an exemption on capital gains invested in eligible start-ups. If an individual or HUF sells a residential property and invests the capital gains to subscribe to the 50% or more equity shares of the eligible startups, then tax on long-term capital will be exempt.

• • Set off of carry forward losses and capital gains which are allowed in condition of a change in the shareholding pattern –

The losses which are carry forward in respect to start-ups are allowed.

What Are the Documents Required for Company Registration?

The following documents are given below to register a startup in India as follows:

• • Incorporation certification in the case of a private limited company

• • Letter of funding from angel investor

• • Recommendation letter from government-recognized incubators

• • Agreement letter in case of LLP.

• • Email ID and the contact number

• • Company details such as the category, industry, sector, etc.

• • Details of Directors/Members (Name, contact details, photographs, gender)

• • Authorized representative detail such as name, contact details and designation

• • Information regarding business operations and product

• • Note on innovation

• • Description stating product uniqueness

• • Revenue model

• • Pan card

• • Aadhar card

• • Address proof

• • Residential proof

How Many Types of Company Registration in India?

The registration of the company is the main process by which businesses establish the company. Business registration allows you to choose the business owners, taxation, compliances, benefits, etc. The Companies Act, 2013 determines seven business structures are as follows:

1. Public Limited Company incorporated by three or more members

2. Public Limited Company incorporated by two or more members

3. One Person Company formed by a single individual who will be a member and director as well.

4. Partnerships formed by two or more partners with determined roles and profit sharing ratio.

5. LLP Partnership formed by two or more partners

6. Sole Proprietorships formed by a sole owner.

7. Section 8 Company

How To Check Company Registration Status for Start Up?

The process to check the registration status of a company is conducted on the MCA There are three basic steps to check the online registration of a company are as follows:

1. Go to the MCA website

2. Go to the ‘MCA services’ tab. You will see a drop-down list. Click on ‘View Company/LLP Master data’.

3. Enter the Company’s CIN. Enter the Captcha code. Click on ‘Submit’. You can either search registration number of the company by clicking the ‘Company/LLP Name’ field.

The web page will display the details as follows:

How to Check Company Registration Number in India?

Any person can check the registration number of the company along with the date of incorporation, the authorized capital of the company, registered address details, and details of the directors of the company.

The documents required to register a company like balance sheets, annual filing documents, and other registration documents can also be downloaded by paying a minimal fee from the website.

The following steps for the check the registration number of the company are given below:

• • Go to the MCA website

• • You shall click on the MCA services tab given on the screen, then select the ‘Company services’ and now click on the ‘Find CIN’ option.

• • Select the option ‘Company’

• • Select for company registration name check, the option of ‘Search based on Existing Company / LLP name

• • The option ‘Search based on Existing Company / LLP name, then the next step is to select the option ‘Start with’, then enter the existing name of the company, and then click on the ‘Search’ option.

• • The CIN of the company will be shown on the webpage.

Closure Now…

Start-up India scheme has opened a door of development for upcoming innovative ideas by the young entrepreneurs seeking funds to develop the ideas. The documents required for registration on the Startup India scheme and steps involved in the registration number of the company and status check.

Frequent Asked Questions

What Are One Person Company Registration Fees?

The fees for registration of One Person Company are bifurcated into government and professional fees. The fees prescribed by the government in India depend on the nominal capital of the company. Suppose, the government fees for the OPC registration whose share capital is 10,00,000 would be Rs. 2000.

How Can I Register My Company for Free?

The basic steps for free registration of a company are given below: –

1. Obtaining DSC and DIN approval for the director

2. Application for name approval

3. Registered office details

4. Submission of MOA and AOA for incorporation

5. Certificate of Incorporation – This is the last step of registration where company registration documents are submitted on the MCA portal

What Are Registrations & Licenses Required for Startup?

The following registration must be taken by the start-ups are:

• • Food Safety and Standards Authority in India (FSSAI) License registration for small businesses

• • International Organisation for Standardization (ISO) certification for startup business

• • Federation of Indian Export Organization (FIEO) Registration

• • Food Export development authority of agricultural and processed products (APEDA) Registration

Is Registration Mandatory for A Private Limited Company?

Yes, Registration for a private limited company is mandatory because without registration there is no existence of a company. There are tax benefits available for Private companies.

What is OPC registration?

The concept of One person company is introduced by the Companies Act, 2013 with only one person acting in the capacity of a member and a director as well. The company registration in Kolkata can be completed through the online website of MCA.

Where can I register my company?

If you want to register a new company, you must apply to the Ministry of Corporate Affairs (MCA). The application is to be made online via the MCA portal.

Can I register my business online?

Yes, you can register your business online. If you are looking to start a company or LLP, then it can be registered only through the MCA portal.

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