Startups are rapidly growing in India, serving as hubs of innovation and efficiency. They can be founded by a single individual or a team of entrepreneurs aiming to scale their business. Essentially, a startup is an early-stage venture designed to solve real-world problems or improve existing products and services. This guide explains the process of registering a startup in India and the necessary documents.
Startup Registration Eligibility
Anyone above 18 years of age with an innovative business idea—or an improvement on an existing product or service—can register a startup in India. Even NRIs and foreign nationals can collaborate with Indian entrepreneurs to register a startup.
Ways to Register a Startup in India
Entrepreneurs can choose to register their startup as a One Person Company (OPC), Private Limited Company, Partnership Firm, or Limited Liability Partnership (LLP).
One Person Company (OPC):
An OPC is incorporated under the Companies Act, 2013, and is owned by a single founder. The company can have up to 15 directors. OPCs are ideal for sole owners who want limited liability while managing the business independently.
Private Limited Company (Pvt. Ltd.):
A private limited company is also registered under the Companies Act, 2013. It is a separate legal entity from its founders and can have up to 200 members and 15 directors. At least two members and two directors are required to set it up. This structure suits businesses expecting high turnover and potential funding opportunities.
Partnership Firm:
A partnership firm is registered under the Indian Partnership Act, 1932. It requires a minimum of two partners, who share profits, losses, and liabilities. Partners have unlimited liability, making this option suitable for small businesses.
Limited Liability Partnership (LLP):
An LLP is formed under the Limited Liability Partnership Act, 2008. It combines features of a partnership and a company, offering limited liability to its partners. It requires at least two partners and is ideal for businesses seeking flexibility, limited liability, and funding options.
Steps to Register a Startup Company in India
Startups can register as an OPC or Private Limited Company using the SPICe+ form on the Ministry of Corporate Affairs (MCA) portal. The registration process is fully online:
- Obtain a Digital Signature Certificate (DSC) for the founding members and directors.
- Apply for a Director Identification Number (DIN) for all directors.
- Reserve the company name by filling Part-A of the SPICe+ form.
- Complete Part-B of the SPICe+ form with company and director details.
- The Registrar of Companies (ROC) reviews the application and issues the Certificate of Incorporation along with the PAN for the company.
How to Register a Company under the Startup India Scheme
The Government of India launched the Startup India scheme to promote entrepreneurship and support early-stage ventures. Startups registered under this scheme enjoy benefits like simplified compliance, tax exemptions, and easier access to funding.
Eligibility for Startup India Registration
To register under the Startup India scheme, a business must first be established as a One Person Company (OPC), Private Limited Company, LLP, or Partnership Firm. Certain restrictions apply:
- Startups older than 10 years are not eligible.
- Startups with an annual turnover exceeding ₹100 crore cannot register.
Steps to Register under the Startup India Scheme
- Visit the Startup India website.
- Click the ‘Register’ button and create a profile by providing the required details.
- Log in to your account and navigate to the ‘Recognition’ tab.
- Select ‘Apply for DPIIT Recognition’.
- Choose either ‘Apply as a Company or LLP’ or ‘Apply as a Partnership Firm’.
- Complete the Startup Recognition Form and submit it.
Documents Required for Startup Registration in India
- PAN cards of all directors and members (or partners in LLP/partnership firm).
- ID and address proofs of all directors and members (or partners).
- Registered office proof (utility bill or rental agreement).
- NOC from the property owner if the startup operates from a rented location.
- Partnership deed (for partnership firms) or Memorandum & Articles of Association (for companies).
Benefits of Startup India Registration
- Income tax exemption for three years with Inter-Ministerial Board (IMB) certification.
- Eligibility to apply for government tenders without meeting prior experience or turnover criteria.
- Ability to self-certify compliance with nine labor laws and three environmental laws.
- Recognition by DPIIT allows startups to sell on the Government e-Marketplace (GeM).
- Easier access to funding from investors, VCs, and angel investors.
- Reduced fees for patents and other intellectual property rights.
Startup Registration FAQs in India
1. How can I get a startup registration certificate in India?
Startups can obtain a registration certificate by applying under the Startup India scheme. To do this, register on the official Startup India website and apply for DPIIT recognition. Once approved, you receive a certificate that allows you to avail government benefits for startups.
2. How much does it cost to register a startup in India?
The cost of registering a startup in India generally ranges from ₹2,000 to ₹30,000, depending on the legal structure chosen (Private Limited Company, LLP, OPC, or Partnership) and the investment involved.
3. How do I start a startup company in India?
You can start a startup in India by:
- Choosing the suitable legal structure: Private Limited, LLP, OPC, or Partnership firm.
- Logging into the MCA portal and filing the SPICe+ form along with the required documents.
- Obtaining a Certificate of Incorporation from the Registrar of Companies (RoC).
- Registering under the Startup India scheme to get DPIIT recognition and access government benefits.
4. Can anyone register a startup in India?
Yes, any individual or group can register a startup in India provided the business:
- Is incorporated as a Private Limited Company, LLP, OPC, or Partnership firm.
- Operates within 10 years of its incorporation.
- Has an annual turnover of less than ₹100 crore.
5. What documents are required for startup registration?
Key documents typically include:
- Incorporation Certificate of the company/LLP/OPC.
- PAN and Aadhaar of founders.
- Proof of business address.
- MoA/AoA (for companies) or partnership deed (for partnership firms).
- DPIIT application form for Startup India recognition.
6. How many startups are there in India?
As of April 2023, India hosts over 90,000 startups, a significant rise from around 350 startups in 2014. India is home to more than 100 unicorns across sectors such as fintech, edtech, and e-commerce.
7. What is the annual turnover limit for a startup?
To qualify as a startup under the Startup India scheme, the annual turnover must not exceed ₹100 crore.
8. What are the tax benefits for startups?
Registered startups enjoy multiple tax benefits:
- Tax exemption under Section 80-IAC for three consecutive years.
- Exemption from angel tax under Section 56(2)(viib).
- Other benefits include reduced compliance requirements and easier access to government funding.
9. Can a foreign-owned company register as a startup in India?
Yes. A company with foreign investment can register as a startup, provided it meets all Startup India eligibility criteria and is incorporated under Indian laws.
10. Is there a time limit to apply for startup recognition?
Startups can apply for recognition within 10 years of incorporation. Businesses older than 10 years are not eligible.
11. Can a startup in India receive funding after registration?
Yes. Registered startups can access venture capital, angel investors, and government funding schemes, including the Fund of Funds for Startups (FFS) offered by the government.
12. How long does it take to get DPIIT recognition?
Typically, DPIIT recognition is granted within 7–10 working days, provided all documents are submitted correctly.
