Despite being restricted to a 9-5 desk job or field job, millions among us dream about starting their own business, no matter how small or big.
Right from the initial step taken, they are forced to encounter a number of challenges and hardships, which pin down their dreams for the sake of their comfort zone.
Only a small percentage of the proportion dares to take the leap and battle the odds to set up their own business, especially the ones who are fuelled up by the entrepreneurial spirit.
The piece is an effort to discuss the legal formalities that the new ventures need to wrap up in order to register their company successfully.
Steps in registering a startup: An Overview
Step 1: Setting up of the business
Step 2: Making an enrolment with Startup India Initiative
Step 3: Get recognized by the Department for promotion of Industry and Internal trade
Step 4: Filing application for recognition status
Step 5: Submitting the documents for registration purpose
Step 6: Getting a unique recognition number
Step 7: Other certifications and documents
Step 1: Setting up of the business
Step 1: Setting up of the business
The first step in the registering of a startup comprises mostly of the documentation and registration processes stated by the companies’ act of the nation.
Choosing a name for the company, Preparation of Memorandum and Articles of association, stating the names and other details of the board of directors, and finally acquiring the certificate of incorporation are some of the notable activities in registering the company.
Step 2: Making an enrolment with Startup India Initiative
Startup India is a remarkable initiative of the central government which primarily targets the nurturing, growth, and development of promising startup ventures.
A profile needs to be created on the official website of Startup India by providing all the necessary details.
This is followed by proceeding with applying for different mentorship and funding programs that fit the nature of the offering of a startup.
Step 3: Get recognized by the Department for promotion of industry and internal trade
Recognition by the Department for promotion of industry and internal trade brings in a colossal amount of benefits to the startup ventures.
Starting with a three-year complete exemption from tax, the probabilities of the startups to avail the benefits like access to funds, certifications related to environment and labour laws, ease of winding up of the company, etc., are high.
Step 4: Filing application for recognition status
The next step is to get the recognition status of the Startup India initiative, and for that, a specific application needs to be submitted.
In the ‘Recognition application detail’ page, go to view details in the ‘Registration details and click on submit after entering all the essential details that have been asked for.
Step 5: Documents for registration
For completing the registration process, certain documents need to be submitted, and it includes the certificate of incorporation (procured on the completion of step 1), the names and other required details of the directors, any proof of the product or service, or even the idea that the startup is going to function on (can be a prototype, pitching session or video proof), if the product or technology used is new, the management needs to submit the reports of patent and trademark, and finally, the PAN number provided by the Income Tax department.
Also Read: How to hire the right people for your company?
Step 6: Getting a unique recognition number
A recognition number will be provided to the startup once it has completed and submitted its application for recognition.
The startup needs to be very careful about the submission process as missing out on submission or wrong submission of documents leads to huge penalties.
Once the unique recognition number is provided, the officials will update the status of recognition after verification of all the documents in two days.
Step 7: Other certifications and documents
The startup, once recognized, will be eligible for the merits like massive reduction in the patent and trademark fee, access to huge funds deployed for the betterment of startups, mentorship opportunities, ease of obtaining certifications related to environment and labour, and most importantly, exemption from taxes for a good period of time.
Final Word
Initiatives like Startup India have done quite a decent job in aiding the budding entrepreneurs with nurturing their ideas wholly.
Such initiatives are indeed the need of the hour to invest in further innovations that will contribute towards making the world a better place.
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