A Startup is a new company or an entrepreneurial venture in its early stages of operations aimed at resolving real life issues with an innovative product or service.
In simple words, Startup is a new business or the activities involved in starting a new business. Startup is usually small which is started by one or a group of individuals.
Startups are becoming very popular in India. The Government of India has started and promoted India Initiative to recognize and promote startups under the leadership of Prime Minister Shree Narendra Modi. After launching the Startup initiative by our Prime minister, there has been an incredible surge in the number of Startups coming up.
Startup offers a that type of products or services which is not being given anywhere in the same way. Many Startups fails within the first few years. That is why Initial period is most important. All the entrepreneurs and owners of the company, who want started startup need to find money, create a business model and business plan, concentrate on raising capital, hire key personnel, stakes for partners and investors, work out intricate details such as equity and plan for long run.
Many Startups focus on quick and sustainable scalability. One of the biggest advantages of a startup is that it improves employment in the country that results in more and more companies coming up. The Indian government has tried to help young companies grow and thrive in the Indian market with the possibility of increased job opportunities. This initiative helps us to innovate and improve economic sustainable development.
Types of Start-Ups
§ Lifestyle Start-up – Work to Live passion
Ø Known customers and products
§ Small Business Start-ups– Work for family
Ø Known products and customers and challenge is business model and profit
Ø Internet version of Small Business Start-ups
§ Large Company Start-ups– Innovate or Evaporate
Ø Innovation of New markets technologies, customers or channels
§ Buyable start-ups– For Acquisition Targets
§ Social Start-ups – Startups driven to make differences in society
Ø Social Innovation, new strategies etc.
§ Scalable Start-ups – Startups for born to be big
Ø Investing more venture capital, unknown customers and products
Procedure for Registering a Startup in India
Steps Comes in the Procedure of Registering a Startup in India are as follows:-
· Incorporate Your Business
Ø First step in registration process of Startup is needed to incorporate company or business as a Private Limited Company or a Limited Liability Partnership or a Partnership firm.
· Register Under Startup India
Ø Second step is needed to register your firm or company or business as a Startup in the Startup India scheme of the government. Fill the form available on the startup India Website. Fill in all the details available in form and upload the certain number of documents a well.
· Documents Need to Upload in a PDF format only
Ø Letter of recommendation along with the registration form is needed. you can get any one of the following recommendation letters:-
A letter of recommendation from an incubator known in a post-graduate college in India, in a format approved by the DIPP.
Recommendation letters from an incubator for that the Government of India funds as part of any specified scheme to Promote innovation.
Letter from any of the Incubator, recognized by the Indian Government, in DIPP format.
A funding Letter not less than 20% in Equity in equity, by an incubation fund and private equity fund that registered with SEBI that endorse the Innovative nature of Startup business.
Letter of Recommendation by Central government or any State government.
A Patent which is filed and also published in the journal of Patent office of India in the areas affiliated with the nature of promoting business.
Ø Certificates of Registration or Incorporation
Ø Brief Description of Business or Company
· Answer if you would like to avail benefits of Tax
Ø Every startups are exempted from income tax for 3 years but to avail this benefit, the business or company must be certified by the Inter-Ministerial Board(IMB).startups recognized by DIPP are now directly avail these benefits.
· Self-Certification of following Conditions:
Ø You are a Private Limited Company, an LLP or a Partnership firm as we studied above.
Ø The business for startup must be incorporated or registered in India not before 5 years.
Ø Your company’s turnover must not be more than RS.100 crore.
Ø The company or business has to keep innovating something new or making the existing system better in its own way.
Ø Business must be a fresh idea and not a splitting up or reconstruction of an existing business.
· Get Your Recognition number
Ø On applying for registration, you get recognition number immediately.
· Other Areas
Ø Trademarks, Patents and registration of design
Some Examples of Startups in India
§ Fresh to home
§ Cure Fit
§ CoolBerg etc.
As we know that, the main focus of the Startup campaign is the simplification and the hand holding and to fund the support and incentives and maintain an industry-academic partnership. Tax and Services fully supports the Startup Campaign because this will provide more job opportunities for Indian youth and contributes in the growth and development of economy and our country. Tax and Services also supports Startup because it has been made to bring positive changes in the country according to the need for development.