Startup in India
/ Company formation / registration

Startup in India

India is one of the largest countries in the world and businesspersons here have many ideas they can put in practice by starting companies. In the past few years, the number of startup companies has started picking up in India thanks to these ideas which usually come from young entrepreneurs.

In this article, our company formation agents in India explain how you can open a startup in this country. You can rely on our support for creating a startup in India.

Steps for creating a startup in India
Compared to the standard steps of starting a corporation in India, the creation of a startup requires a further one, which is to register it intrinsically . Therefore, the subsequent steps got to be completed when opening a startup in India:

  • choose the legal sort of the corporate (there are several legal entities suited to the present business type);
  • obtain the Digital Signature Certificate (DSC) and Director number (DIN);
  • register the corporate with Startup India, the agency supporting such companies;
  • register the business with the businesses Registrar in India, a bit like within the case of the other company;
  • register for taxation purposes and acquire the required approvals and business permits.

Compared to the incorporation of a medium or large-sized company, the startup must be registered with Startup India.

With reference to the legal entities which will be used to open a startup in India, the partnership and therefore the private indebtedness company are preferred.

If you’ve got any questions on the way to form a corporation in India, our representatives can answer them.

Documents to organize for startup creation in India
Upon the opening of a startup in India, the documents to organize are usually an equivalent as for the other company and include:

  • the trading name reservation form;
  • the DIN of the directors;
  • the Digital Signature Certificate;
  • the application form for company registration (Form-1);
  • Form -18 which provides for the registered address of the corporate
  • Form-32 which provides for the details of company officers (directors, managers, and secretary).

Apart from these, because the corporate may be a startup, additional documents must be provided. Among these, a recommendation which will be filed with Startup India. This recommendation can take one among the subsequent forms:

  • a letter of support from a recognized business incubator;
  • a letter of funding from a business incubator or angel investor (the funding can’t be but 20% of the company’s capital and must be made in equity);
  • a letter of funding from the Indian government;
  • a patent registration form which has been published by the Patent and Trademark Office Database within the Official Gazette.

The letter of advice will function proof of the viability of the thought presented by the startup in India.

If the company seeks tax exemption (startups in India are exempt for 3 years from the corporate tax), it must obtain a certificate from the Inter-Ministerial Board.

Our company formation consultants in India can help with the preparation of all the documents that require to be filed so as to make a startup during this country.

The startup environment in India
India may be a very appealing destination for fixing a startup because of various benefits under the shape of tax exemptions it can obtain. this is often why the amount of such businesses flourished within the previous couple of years. consistent with statistics:

  • by the top of 2019, there have been 4,750 startup companies registered in India;
  • the average age of entrepreneurs fixing such companies is 28;
  • there are around 140 incubators to support startup companies;
  • these businesses accounted for the creation of 80,000 jobs within the previous couple of years.

For any query, Contact us.