Startup means an entity, incorporated and registered in india
An entity shall cease to be a Startup,
Tax Exemption
Once your company get Startup recognition, you can further apply for Income Tax Exemption benefits available u/s 80IAC and U/s 56 relief for Angel Tax relief (Tax on Share Premium). |
Tender Participation
In many Tenders, Govt. and PSU gives relaxation for Startups to Participation in public procurement job through tenders. Relaxation in Prior experience, EMD or Turnover criteria. |
Govt. Funding Opportunity
Government allotted Rs 10,000 crores funds for investment into startups through Alternate Investment Funds. SIDBI is managing this fund. Startups can apply under this quota. |
Participate in various Govt. Scheme
Government issues day to day various schemes for startup to participate. For example, sustainable finance scheme, bank credit facilitation, raw material assistance, etc. |
Participate Startup Grand Challenges
Many reputed companies encourage startup entrepreneurs for their solutions. Here gives an opportunity for startup to participate in the scheme and win funding. Recently, Whatsapp, Mahindra, Aditya Birla, many more companies organising such financial assistance scheme with Startup India. |
IPR Govt. Fee Concession
In IPR Registration 50%-80% Govt. fee concession available. Example in Trademark, Patent application. |
Self Certifications
Eligible for Self-certification and compliance under 9 environmental & labour laws. |
Easy Winding up
Windup company in 90 days under insolvency & Bankruptcy code 2016. |
Connect Networks
Search and find various startups and connect with them. Get Mentorship, connect with investors and industries. |
GEM Portal Seller Registration and Bid
Startup India (DIPP) require for registration at GEM Portal of govt. https://gem.gov.in/ |
As per Revised Rule vide Notification dated 11th April '2018 issued by Ministry of Commerce and Industry ( Department of Industrial Planning and Promotion) -
A Startup being a Private Limited Company or Limited Liability Partnership (LLP) incorporated after 1st April 2016 may, for obtaining a certificate for the purpose of section 80-IAC of the Income Tax Act, make an application in Form-I along with documents specified theirein to the Board and the Board may after calling for such documents or information and making such enquires, as it may deem fit -
Either
i) Issue Tax Exemption Certificate.
or
ii) Reject the application by providing reasons.
As per Revised Rule vide Notification dated 11th April '2018 issued by Ministry of Commerce and Industry ( Department of Industrial Planning and Promotion) and subsequently amended on 19th February 2019-
ELIGIBILITY CRITERIA:-
A Startup being a Private Limited Company or LLP recognised as Startup shall be eligible to apply for approval for the purpose of Section 56(2)(viib) of the Income Tax Act ( popularly known as ANGEL TAX), if the following conditions are fulfilled:-
(i) the agreegate amount of paidup share capital and share premium of the startup after the proposed issue of share capital does not exceed Rs 25 crores.
(ii) the investor/proposed investor, who proposed to subscribe to the issue of share of the startup has
a) the average returned income of the Rs 25 Lakhs or more for the proceeding three financial years, or
b) the networth of Rs 2 Crores or more as on the last date of the proceeding financial year, and
(iii) the startup has obtained a report from a merchant banker specifying the fair market value of share in accordance with rule 11UA of the Income Tax Rule, 1962.
(iv) Benefit available for 10 years.
APPLICATION & APPROVAL PROCESS:-
The application for approval under this para shall be made in Form-2 to the Board and shall be accompanied by documents specified therein.
And Board may after calling for such documents or information and making such enquires, as it may deem fit -
Either
i) Grand approval for the purpose of Section 56(2)(viib) of the Act, specifying the relevent details, including details of investors, amounts of premium on which shares are to be issued and the latest date by which the shares are to be issued;
or
ii) Decline to grant the said approval after providing reasons.