DIPP or Department for Promotion of Industry and Internal Trade is an integrated portal wherein the government of India provides services to the new business setups by helping them in filling of Industrial Entrepreneurs Memorandum (IEM) and Industrial License (IL) applications Online. It deals with matters concerning the start-ups in India and promoted ease of doing business. The recognition under DPIIT helps start-ups to benefit, for example, from access to quality intellectual property services and resources, reducing public procurement standards, labour and environmental self-certification, easy winding up of businesses, access to funds, tax exemption for three years after the start of business. Before understanding the process of registration, we first need to know the eligibility criteria of a business to become a start-up.
Eligibility of a business to be termed as a startup in India is as follows:
- It must be established as an LLP or,
- It must be established as a private limited company.
- The business has the status of a startup only up till a duration of 10 years after having been registered . In order to offer more chances and tax savings for enterprises on a longer basis, the Indian Government expanded this from 7 to 10 years.
- A company is still deemed a startup if its annual turnover does not reach Rs 100 crore in any of the ten years.
- An incubator must provide you with a letter of recommendation.
- The firm must be approved by the DIIPT
- The investment support to the said startup must be provided either by incubation support or angel funding etc.
- The business must offer completely new themes and ideas.
- All funding-related information must be reported with the Securities and Exchange Board of India.
DPIIT recognition process is as follows:
- When logging in as a new user, click on the ‘Get Recognized' icon or when logging in as an existing user, click on the dashboard icon. •
- After that, click on DPIIT Recognition, which will then display the details of the recognition application page.
- On the above page, under the section where registration details is asked, click on ‘View Details.'
- Next, complete the 'Startup Recognition Form.
- 'Upload the following documents as required by the startup recognition form:
-
- Certificate of incorporation of the startup or the registration certificate of the startup.
- Proof of the concept of the startup life a website link for the same etc.
- Details of the Permanent Account Number.
- Information of the Directors or owners of the startup.
- After that click on the submit icon.
- After the examination of all the documents that are mentioned above which takes at least two days to get examined, you be granted or issued a recognition number for the same.
Note: If on examination of the documents mentioned above any document has not been uploaded or any forged document has been uploaded then in that case the owner of the startup who has applied for the recognition under DPIIT will be fined 50% of the startup's paid-up capital, with a minimum punishment of Rs. 25,000.
