Start-Up Business

1. What is Startup?
A startup is a young company founded by one or more entrepreneurs to develop a unique product or service and bring it to market. By its nature, the typical startup tends to be a shoestring operation, with initial funding from the founders or their friends and families.

2.What is constitution of regular startup?
Startup can be in any form such as:
- Proprietorship
- Partnership
- Hindu Undivided Family (HUF)
- Limited Liability Partnership (LLP)
- Private Limited Company
- One Person Company

3. What is procedure for registration of Startup?
A regular startup registration process is very simple. For Sole proprietor:
Step 1 - If you are proprietor (Single owner) then apply for PAN card if you don't have one.
Step 2 - Apply for Shop Act License
Step 3 - Open a Current Account with any good bank
Step 4 - Apply for statutory registrations such as GST/Professional tax/Import Export Code etc as per requirements.

Note:- Sole proprietor can also form a One Person Company. It has corporate legal status like Private Limited Company.
For other than sole proprietor business, following are steps:
Step 1 - Incorporate a entity such as Partnership / LLP / Pvt Ltd Company
Step 2 - Apply for PAN and TAN
Step 3 - Apply for Shop Act License
Step 4 - Open a Current Account with any good bank
Step 5 - Apply for statutory registrations such as GST/Professional tax/Import Export Code etc as per requirements.

4. What is Startup India Scheme?
Startups are becoming very popular in India. In order to develop Indian economy and attract talented entrepreneurs, the Government of India, under the leadership of PM Narendra Modi, has started and promoted Startup India initiative to recognize and promote startups. In a major announcement, he said there will be income tax exemption to startups for the first three years. He also promised faster patent registrations and quicker exits for companies. norms will be relaxed for public procurement of startups.

5. Eligibility for Startup India Scheme
A. Startup need to get recognize by DPIIT (Department for Promotion of Industry and Internal Trade). Eligibility Criteria for Startup Recognition are:
The Startup should be incorporated as
- A private limited company.
- Registered as a partnership firm.
- Limited liability partnership.
B. Turnover should be less than INR 100 Crores in any of the previous financial years
C. An entity shall be considered as a startup up to 10 years from the date of its incorporation
D. The Startup 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 "Startup"
E. Entity should not have been formed by splitting up or reconstructing an already existing business