Following steps can help you save tax cost for three years by simply registering our startup with the Startup India initiative:
I. Incorporate your business
Incorporate your entity following ordinary procedures as a certification of incorporation, PAN card and other compliances to the specific nature of your business. However, registration must be after or in April 1, 2016.
II. Register your business with startup India scheme
Upload an online form with all required forms on Startup India website.
III. Documents to be uploaded
Below is the list of documents you need to submit online
A recommendation in a format certified by DIPP from an incubator (with regard to innovative nature of business) recognized by the Central Government.
A support letter from any central or state government funded incubator to encourage innovation.
A funding letter of not less than 20% in equity by any incubation or angel fund / PE (permanent establishment) fund / accelerator or angel network registered with Securities and Exchange Board of India endorsing the innovative nature of business.
A published filed patent in the Journal by the Indian patent office in areas affiliated with the nature of business being promoted.
A brief descriptive innovation you included in your product.
IV. Choose an option to avail tax benefits or not
For this, get an approval from the inter-ministry board which depends on the ministry that the application will be approved or not. Once it is approved, your startup is recognized by DIPP and you can avail IPR related benefits without any further license.
V. Self - certification
Self-certify all your documents ensuring that your entity is qualifying all the required conditions to avail the benefits i.e. within first 7 years you can apply, turnover not exceeding a limit of
INR 25 crore, innovation in the product, the idea must not be copied, your business must not result from any reconstruction or splitting.