Startup India: How to get investment for a start up in India?

Many people are drawn to the idea of supporting new ideas and technologies that can have a positive impact on the world. By investing in a startup, individuals can feel a sense of ownership in its success and contribute directly to its impact. A start up has the potential to grow rapidly and achieve significant financial success.

To start start up can be an exciting way to support innovation and potentially achieve high returns. However, it’s also a risky proposition, as many startups fail. The government of India also helps individuals to start their business in the country through its website startupindia.gov.in. Let’s discuss more about how you can take advantage of this initiative of government.

Startup India was launched on 16th January 2016. It’s been more than 7 years, and the government of India has supported several entrepreneurs and built a robust startup ecosystem with this initiative. A dedicated Startup India Team manages these programs and reports them to the Department for Industrial Policy and Promotion (DPIIT). 

Eligible companies can apply to be recognized by DPIIT as Startups under the Startup India initiative. It allows them the use of a number of tax advantages, simpler compliance, IPR fast-tracking, and other benefits.

DPIIT-Recognised Startups will have these advantages:

Intellectual Property Rights (IPR)

Startup India offers access to top-notch intellectual property services and resources to help businesses maintain and commercialise their intellectual property rights (IPRs).

Relaxation in Public Procurements Norms

The government of India has allowed its ministries, departments and public sector projects to relax norms in all public deals. Startups are eligible to receive a discount on prior turnover, prior experience, and earnest money deposit.

Self-certification under Labour & Environment Laws

Startups are allowed to self-certify their compliance under 9 Labour and 3 Environment Laws for a period of 3 to 5 years from the date of incorporation.

Fund of Funds for Startups (FFS)

To ease the development and growth of innovation-driven companies, the government has set up a corpus fund worth INR 10,000 crores, which is controlled by SIDBI. 

Credit Guarantee Scheme for Startups (CGSS)

The Credit Guarantee Scheme for Startups (CGSS) offers credit guarantees for loans made by Scheduled Commercial Banks, NonBanking Financial Companies, and Alternative Investment Funds (AIFs) registered with the Securities and Exchange Board of India (SEBI).

Startup India Seed Fund Scheme (SISFS)

The Ministry of Commerce and Industry’s Department for Promotion of Industry and Internal Trade (DPIIT) is launching the Startup India Seed Fund Scheme (SISFS) with a 945 crore rupee investment.

Faster Exit for Startups

The Ministry of Corporate Affairs has designated Startups as “fast track firms”. It means that instead of 180 days to wind up operations, they can do so in 90 days. 

Tax exemption under Section (56)(2)(viib)

Startups incorporated on or after 1st April 2016 can apply for income

tax exemption. A DPIIT-recognised startup is eligible for exemption from the

provisions of section 56(2)(viib) of the Income Tax Act.

Eligibility To Start Start Up

You can also check your eligibility if you want to start a startup in India through this website and get recognition from DPIIT. 

Your company must fulfil the following criteria to be eligible for DPIIT startup recognition.

1. Company Age: The period of existence and operations should be at most 10 years from the Date of Incorporation.
2. Company Type: Incorporated as a Private Limited Company, a Registered Partnership Firm or a Limited Liability Partnership.
3. Annual Turnover: Should have an annual turnover not exceeding Rs. 100 crore for any of the financial years since its Incorporation.
4. Original Entity: Entity should not have been formed by splitting up or reconstructing an already existing business.
5. Innovative & Scalable: Should work towards the development or improvement of a product, process or service and/or have a scalable business model with high potential for the creation of wealth & employment

There are different schemes for different states and union territories. Click here to check your state.

For startup ideas and to get to know more about the startup India scheme, you can also register yourself on the Startup India Portal.

How to get Funding for your Startup in India?

If you want to start a business and need investment, you should visit the startup India site and register yourself there. Here’s the process of registering yourself on the official site of the government.

1. Visit the Startup India Website: Go to https://www.startupindia.gov.in/ in your web browser.
2. Click on “Register”: Look for the “Register” button on the website’s homepage and click on it.
3. Choose User Type: Select whether you are registering as an individual, as a startup, or as an incubator/accelerator.
4. Fill in the Registration Form: Fill in the required details in the registration form. This includes your name, email address, mobile number, and other relevant information.
5. Verify Email and Mobile Number: You will receive an OTP (One Time Password) on your registered email address and mobile number. Enter these OTPs to verify your identity.
6. Complete Registration: Once you have verified your email and mobile number, complete the registration process by providing any additional required information.
7. Receive Recognition Number: After completing the registration, you will receive a recognition number for your startup.
8. Access Benefits: As a registered startup, you will be able to access various benefits and support programs offered by Startup India.
9. Maintain Compliance: Ensure that you fulfil the compliance requirements to maintain your startup status.
10. Update Information: Keep your startup profile updated with any changes in your business or contact information.

If you want to start a startup or register a startup in India, the government of India is giving you this great opportunity, don’t miss this chance.

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