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India’s Story [2024–2047]
India, currently a $3.75 trillion economy, has seen remarkable growth since its independence.
It took 60 years to reach its first trillion dollars, but the next trillion was added in just 7 years, and the third trillion in only 5 years.
India is on track to add a trillion dollars to its economy every two years over the next 14-15 years, propelling it toward becoming a ten trillion-dollar economy by 2035, according to the Centre for Economics and Business Research (CEBR).
One of the key drivers of this economic growth is the Start-up sector, which has played a pivotal role in enhancing financial accessibility and promoting digital transformation across industries. The term “Start-up” has become a buzzword in today’s fast-paced business landscape, capturing the attention of innovators, investors, and entrepreneurs alike. But what truly defines a Start-up? Is it merely a young company with a novel idea, or is there something more profound behind the term?
At its heart, a Start-up is a young company in its early stages of development, but what sets it apart is its relentless focus on innovation, scalability, and high growth potential. These companies often dive into uncharted waters, with a mission to disrupt existing markets, create new ones, or introduce ground breaking products and services.
Start-ups arise from ideas or problems that have the potential to create substantial business opportunities and lasting impact.
More than just small businesses, Start-ups are the engines of future industries and economic expansion. They are launched by visionary founders with a shared goal of developing innovative solutions, solving real-world challenges, and turning these ideas into investable ventures. With their sights set on rapid growth, Start-ups operate on scalable business models designed to make a big impact and transform entire sectors.
Startup Impact
Start-ups are the catalysts of today’s global economy, driving innovation, competition, and technological advancement while shaping the future of industries worldwide.
The Start-up India initiative was first announced by the Hon’ble Prime Minister of India, Shri Narendra Modi, on August 15, 2015, where he emphasized,
“I see start-ups, technology, and innovation as exciting and effective instruments for India’s transformation.”
Launched in 2016, Start-up India is a flagship initiative of the Government of India (GoI), designed to foster a vibrant Start-up culture and build a robust, inclusive ecosystem for innovation and entrepreneurship in the country.
This initiative aims to drive sustainable economic growth and create large-scale employment opportunities. To further this mission, the Prime Minister unveiled the Start-up India Action Plan on January 16, 2016.
The scheme was followed by Startup India Seed Fund Scheme (SISFS) with an investment plan of Rs 945 crore in 2021. The government started Digital India Startup Hub and the Supporting Entrepreneurs in Transformation and Upskilling (SETU) programme.
PM Modi further announced that January 16 will be celebrated as ‘National Start-Up Day’ every year.
DPIIT Start-up Recognition
Pursuant to the Start-up India Action Plan, Start-ups that meet the definition as prescribed under G.S.R. notification 127 (E) are eligible to apply for recognition under the program and as mentioned below.
Eligibility Criteria
The Start-up should be incorporated as a private limited company or registered as a partnership firm or a limited liability partnership.
Turnover should be less than Indian Rupees 100 crore in any of the previous financial years.
An entity shall be considered as a Start-up up to 10 years from the date of its incorporation.
The Start-up should be working towards innovation/improvement of existing products, services and processes, and should have the potential to generate employment/create wealth.
An entity formed by splitting up or reconstruction of an existing business shall not be considered a “Start-up”.
Tax Incentives
A recognised Start-up may apply for Tax exemption under section 80 IAC of the Income Tax Act. Post clearance for Tax exemption, the Start-up can avail tax holiday for 3 consecutive financial years out of its first ten years since incorporation.
Eligibility Criteria for applying to Income Tax Exemption (80IAC):
The entity should be a recognized Start-up.
Only Private Limited or a Limited Liability Partnership is eligible for Tax exemption under Section 80IAC.
The Start-up should have been incorporated after April 1, 2016.
A recognised Start-up may also apply for Angel Tax Exemption under Section 56 of the Income Tax Act, popularly known as “Angel Tax”.
Eligibility Criteria for Angel Tax Exemption (Section 56):
The entity should be a DPIIT recognized Start-up.
Aggregate amount of paid-up share capital and share premium after the proposed issue of share, if any, does not exceed INR 25 Crore.
Must comply with certain other conditions in terms of permissible investments.
Key Stakeholders
A thriving Start-up ecosystem has the potential to produce remarkable success stories, from unicorns to large-scale enterprises. This ecosystem is a dynamic network of various stakeholders, each playing a unique role in nurturing the growth and sustainability of Start-ups.
These stakeholders contribute to the governance and evolution of the ecosystem in different ways.
Below are some of the key stakeholders and their roles in Start-up ecosystem governance:
Founders and entrepreneurs are the driving force behind any Start-up. They play a crucial role in governance by setting the vision, values, and culture of the company. They are responsible for defining the Start-up’s mission, goals, and establishing a framework for ethical and responsible business practices.
Mentors and advisors are seasoned professionals who offer guidance and support to Start-ups. They contribute to governance by sharing valuable insights, industry knowledge, and networking opportunities, helping Start-ups make informed decisions and avoid common pitfalls.
Customers and users are central to Start-up governance, as their feedback and preferences influence product development and market strategies. Engaging with customers and addressing their concerns responsibly is essential for maintaining trust and loyalty.
By understanding the roles and responsibilities of each stakeholder, Start-ups can effectively navigate the complex landscape of the ecosystem while adhering to high standards of governance.
Collaboration among these stakeholders ensures that Start-ups are not only successful but also responsible and ethical contributors to the broader business community and society. In a world increasingly in need of sustainable solutions, Start-ups have the potential to be catalysts of change, leading us toward a greener and more promising future.
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Start-up Mahakumbh
In March 2024, the Prime Minister, Shri Narendra Modi inaugurated the Start-up Mahakumbh at Bharat Mandapam, New Delhi. He emphasized its importance and outlined India’s roadmap to become a Viksit Bharat by 2047.
Startup Mahakumbh is a first-of-its-kind event bringing together the entire startup ecosystem of India, including startups, investors, incubators, accelerators, and industry leaders from several sectors.
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Our Incorporation Services Include
Business Structure Consultation
Assistance in choosing the best structure for your business (Private Limited, LLP, Partnership, etc.).
Name Approval
Guidance and filing for your business name approval with the relevant authorities.
Document Preparation
Drafting and filing of necessary documents such as the Memorandum and Articles of Association.
DIN & DSC
Assistance with obtaining Director Identification Numbers (DIN) and Digital Signature Certificates (DSC).
PAN & TAN Registration
Facilitation of Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) registrations.
Certificate of Incorporation
Obtaining the official Certificate of Incorporation from the Registrar of Companies.
Post-Incorporation Compliance
Support with opening bank accounts, statutory registrations, and initial compliance filings.