After introducing the concept of Start-Up Scheme, the people around the country wants to know more about the benefits and profits which are offered by the scheme. This is one of the efficient steps taken by the Government of India to support the startups and business ventures which have new, creative and innovative ideas. Innovative ideas of the start-up always look forward to the proper infrastructure with great financial support to live in the competitive environment of the business.
KNOW ABOUT THE SCHEME:
Startup scheme is one of the campaigns which provide the financial support to the new business ventures through banks which encourages entrepreneurship and more startups with new and creative jobs.
Reason and Concepts-:
The reason behind this scheme is to establish the world of entrepreneurs for creating jobs instead of regular jobs and creating the soothing environment for the businessman. It restricts the involvement of state policy and also eliminates the concept of ‘License Raj’. It is helpful in breaking the hurdles which come at the time of land permissions, environmental clearances, interference of political party, foreign investment etc.
MAIN FEATURES OF THE SCHEME:
- Encouragement of Entrepreneurship: The main motive of government for introducing this scheme was to encourage the young entrepreneurs which create more jobs in India.
- Clearance of Single Window: This scheme is a Single Window Clearance which reduces the time of entrepreneurs by clearing the barriers. It creates the opportunity to start the business by using the benefit of Startup India Scheme.
- Benefits of Tax: After the registration in the Startup India Scheme, for the 7 years there is no Capital Gain Tax and Tax in Profits.
- Startup Patent Application: Up to 80% of the Patent Registration fees are reduced.
- Startup Trademark Registration: The Trademark Registration Fees for online is Rs 4,500/-, Physical Filling the form is Rs 5,000/-, and for others, it is Rs 9,000/- or Rs 10,000/-.
- Funds for Investment: The Government of India provides for about INR 10,000 crore funds. This is for the startup investment through Alternate Investment Funds for over 4 years.
PROCEDURE OF REGISTRATION UNDER THE SCHEME:
To initiate registration process for the recognition of Start-up the firm should a registered legal entity under Private Limited Company or Registered Partnership firm or Limited Liability Partnership. Each of these has a different process of registration.
- Registration of private limited company
Firstly, there is the need for a Digital Signature Certificate which is required to obtain Director Identification number (at least 2 Directors). An application has been filled for it. As the authorities have been done with the approval process of DSC or DIN of both the directors, the applicant is assigned to file an application of name approval with Registrar of Companies inform INC-1.
Whenever Registrar of companies approves company name as perform INC-1, the applicant is required to prepare & submit various necessary documents like declaration’s & disclosure regarding his directorship in other company to Registrar in Form INC-32 along with Memorandum & Article of Association in Form INC-33 & INC-34. Authorities generally take 5-8 working days to approve this form.
After ratifying all the necessary documents ROC approves the Company Name to get it registered under the jurisdiction of that particular Registrar of companies. Then they issue the final Certificate of Incorporation.
- Registration of Limited Liability Partnership
Registering a company as a Limited Liability Partnership also needs to file an application for Digital Signature Certificate & Director Identification Number for at least two established Partners. This is the prior requirement for the registration of a company as a Limited liability partnership. As the partners get the DSC and DIN one is required to apply for name approval of LLP in Form-1 with Registrar of companies under the jurisdiction of their region. After they get name approval for their LLP, required documents are to be prepared and submitted within a defined period with ROC for finalization of Registration of LLP in Form-2. It normally takes 20-25 working days in the process of approval.