Startup India is a flagship initiative launched by the Government of India on 16th January, 2016 to build a strong eco-system for nurturing innovation and startups in the country which will drive economic growth and generate large scale employment opportunities. 

• Eligibility to apply for 3 years Income Tax exemption

Eligible Startups can be exempted from paying income tax for 3 consecutive financial years out of their first ten years since incorporation.

• Eligibility to avail funding from Rs. 10,000 crore FOF scheme

Under Funds of Funds for Startups Scheme already more than Rs. 1600 crore is invested in 251 Startups. You may be one of the Startups for the remaining Rs. 8,400 crore corpus.

• Priority Govt. Tender and Procurement Scheme

Exemption from prior experience or turnover and Security deposit for filing tenders

Opportunity to list Startup products on Government e-marketplace for market visibility.

• No Angel Tax up to Rs. 25 crore funding

Investments into eligible Startups by Accredited Investors, Non-Residents, AIFs, and closely-held listed companies may also be exempted under Section 56 (2) (VIIB) of the Income Tax Act, 1961.

• Finally, Labour Inspector Raj Gone for Startups

No more Labour Law Inspection fear for Startups. Recognised Startups can self manage their PF, ESIC, Gratuity and Environmental Law Compliance through simple self-declaration.

• 50% discount in Trademark & 80% rebate in Patents fees

Fast-tracking of Startup Patent application, Upfront 50% discount on Trademark fees, 80% Rebate on Patent filing fees

• Now Loan from Foreign Investors (ECB) is a cakewalk

Recognised Startups can avail of loans from Non-Resident Investors (External Commercial Borrowings-ECB) up to $ 3 million every financial year through a simple RBI compliance mechanism.

• Private Limited can take deposits from its members

For a period of five years from the date of its incorporation under the Companies (Acceptance of Deposits) Rules, 2014.

• Eligibility for availing State Govt. Incentives

Like the Maharashtra State GST rebate scheme, Many other Loan and Rebate Incentives are announced by different State Governments of India.

• Minimum Shareholders - 2 Nos

• Minimum Directors - 2 Nos

• The directors and shareholders can be same person

• One of the Directors must be an Indian Resident

• Minimum Authorised Share Capital - ₹ 100,000 (INR One Lakh)

• DIN (Director Identification Number) for all Directors

• DSC (Digital Signature Certificate) for one of the Directors

• PAN & Aadhar of 2 Directors

• Scan copy of Passport size photographs of Both Directors

• Scan copy of Specimen Signatures of Both Directors

• Address Proof of Both Directors (Eg: Electricity Bill, Telephone Bill etc) in case Aadhar address is different

• Latest 3 Months Bank statement of Both Directors

• Mobile Numbers & Email IDs of Both Directors

• Startup India Recognition Certificate