The start-up storm has finally taken over the Indian industrial sector and how. Most young people these days look forward to entrepreneurship as a better career option instead of any 9-5 openings. When you begin with your own startup company in India, you must get yourself linked with the startup India scheme which helps small businesses flourish and benefit the most from the governmental aids. DPIIT registration is indeed an important step in this whole process but initially we need to understand the Startup India Scheme properly to get the most out of it. Startup India provides identification and help to those businesses that have been newly formed or have been around for not more than a decade. It has been mentioned for biotechnology firms that the maximum tenure is of ten years of operation from the date of registration in India and for the other industries the limit is seven years to get registered under the Startup India Scheme.
What is DPIIT Registration?
This is an initiative by the government of India to identify and encourage the startups . This was done in compliance with the Make in India Campaign. By getting a DPIIT registration done, the startup can access the benefits of self-certification and compliance under nine environmental & labor laws. If the entrepreneur wants to shut down the company they can do so within the next ninety days according to the Insolvency & Bankruptcy Code 2016. Further there are a number of exemptions or rebates accessible like:
- You can avail Tax exemption on capital gains & on investments above fair market value.
- You can also avail Exemption from requirement of earnest money deposit in government tenders.
- Another huge benefit that you get with DPIIT registration is Income tax exemption fo
- In case of patent and trademark r three years back to back.
- Also if you file for a trademark or a patent,you get a rebate of fee upto predefined limit.
When you apply for government tenders, the requirement of minimum capital or turnover or experience has to be fulfilled by the entrepreneur as and when specified. But if the business entity has a DPIIT registration then, such entrepreneurs can apply for tenders as specified even if they don’t fit into the eligibility criteria or cater to such requirements of minimum capital, turnover and so on and so forth.
Things to remember while applying for a DPIIT Registration:
● The startup needs to be not more than ten years old from the date of its incorporation.
- Startup must be a private limited company or a registered partnership firm or a limited liability partnership.
- Since its operational days, yearly turnover should not be more than hundred crores for any of the financial years.
- Startup must be formed by splitting up or reconstruction of an already successful business. New entity must be formed.
- Startup should come up with an innovative business idea, development or improvement of products or processes or services, or it should be generating employment and helping money flow into the economy.
Benefits of DPIIT Registration:
There are a number of benefits of DPIIT Registration. It is a non-negotiable step for any start-up in India and these are some of the best benefits that you can have access to after getting registered.
- After getting your DPIIT Registration, you can claim your tax exemption.
- You can access a lot of income tax benefits for the period of next three years.
- DPIIT Registration helps you save both money and time efficiently.
- DPIIT Registration also lets you avail investment exemptions.
- Concessions on all the capital gains can be accessed with DPIIT registration.
- You can get funded by the government if you get your DPIIT Registration,
- Self-certification and no inspection for three years is also available under this scheme.
Things required for DPIIT Registration:
Legal procedures like DPIIT Registration can get a little bit tricky if you try to do it without the help of any legal advisors. But, we have got you covered! Below is a list of all the documents that you will be needing while applying for a DPIIT Registration for your Startup Company or brand.
- Copy of certificate of incorporation LLP registration certificate and PAN card of the company.
- Short and crisp briefing about the company and the product or service it provides.
- Description of the directors, partners and investors of the startup company with authentic contact details like phone number, email address etc.
- Correct and authentic answers to all the questions asked in the portal while applying for DPIIT registration.
What is DPIIT Registration?
The DPIIT Certificate of Recognition for Startups is issued after examination of the application and documents submitted by the entrepreneur concerned. Once the ministry approves the application and provides the unique startup recognition number, the startup can be registered with tax benefits. This whole process is called DPIIT Registration.
Which are the best startups in India?
The top ten startups in India are:
- Digit Insurance
Who is the secretary of DPIIT?
Guruprasad Mohapatra is the secretary of DPIIT in India.
Is DIPP and DPIIT same?
The Department of Industrial Policy & Promotion (DIPP) was renamed as the Department for Promotion of Industry and Internal Trade (DPIIT) in 2019.
How do I get DPIIT Registration?
Follow these steps to get your registration done
- Go to Startup India website.
- Enter details of the entity.
- Enter the full office address of the entity.
- Enter the information of the Authorized Representative.
- Enter the details of the directors, partners and investors.
- Enter other details.
- Enter the details of the website.
- Upload your self certification.
What is DPIIT in current Income Tax?
Eligibility Criteria for Tax Exemption under Section 56 of the Income Tax Act: The entity should be a DPIIT recognized Startup. Aggregate amount of paid up share capital and share premium of the Startup after the proposed issue of share, if any, does not exceed INR 25 Crore.
Where can I download the DPIIT Registration certificate?
DPIIT Registration can be accessed through digilocker easily.
What is the full form of DPIIT in India?
The Department of Promotion of Industry and Internal Trade is the full form of DPIIT.