The ultimate guide: How to register your business in India

Startups are the buzzword in the SME sector these days, as India emerges as a new hub for these innovation-driven small businesses. Recognising the scope of this up and coming business model in generating revenue, employment and capital, the Centre launched the Startup India Scheme in January 2016.

In what can only be deciphered as a direct effect of this scheme, NASSCOM notes small businesses in India have registered a 108 percent growth in funding between 2017 and 2018, and more than 1,200 new initiatives were established in 2018 alone.

The bottomline is – there is no time like the present to get your business off the ground. Getting registered is one of the first steps in that direction.

Here’s your step-by-step guide on the process:

Eligibility
For easy registration under the Startup India Scheme, a company must meet the following criteria:

- It must be formed as a partnership, limited liability partnership or private limited firm
- It must either be a new firm or not more than five years old
- The total turnover should not exceed Rs 25 crore
- It should have the Department of Industrial Policy and Promotion (DIPP) approval. For this, the firm should be funded by a private equity fund, angel fund or incubation fund registered with SEBI
- It should have a patron guarantee issued by the Indian Patent and Trademark Office
- The firm must offer innovative solutions, products or schemes
- It must have a letter of recommendation from an incubator
Registration model for your business

The registration for a business can be done in any one of the following models:

Partnership firm: All concerned parties must enter a partnership deed with clearly specified terms and conditions, and register the company under the Partnership Firm Act.

Limited liability partnership firm: Such a firm model is marked by elements like transferability and limited liability protection and must be registered under The Limited Liability Partnership Act, 2008.

Private limited company: A privately held small business with no more than 50 stakeholders and registered as per the Companies Act, 2013 .

Online registration process
Businesses can now apply for the registration in a few simple steps on the Startup India portal:

- Enter your legal entity
- Enter details of incorporation/registration number and date
- Enter Your PAN and address details
- Enter details of authorised representatives, partners and directors
- Upload necessary documents with self-certification
- Submit your application for incorporation/registration of your business

Why you must registerNot only has the government made the process of registration easy and hassle-free, but it also comes with its fair share of benefits. Of them, the most prominent is an exemption from taxes for a period of three years. Besides, you can avail the benefits of government’s Rs 2,500 crore startup fund and credit guarantee of Rs 500 crore.