How to Start a Startup Business: A Guide to Startup India Program
It's a trend and a necessity for a truly changing India that today, many of us aspire to become independent entrepreneurs. We want to set ourselves free from the very typical 9 to 5 work schedule, to earn a living. Although, that's a secure one -- but hey! The time is changing and we are too and should.
A Startup business is 'Your Own Business.' An opportunity though is a little risky but will make you professionally and financially self-dependent. It lets you earn a reputation and you're answerable to nobody because -- You're the boss.
Besides, the step will give you heaps of experience that you will definitely cash in after some time.
Alright, holding on to that vision, we must first know--- What Startup Means and, How To Start A Startup In India?
The deal is right! So why wait? Let us understand it in a step-by-step process. Besides that, this article will also provide further details on the topic.
And to begin with, let us start by understanding the following;
Definition of a Startup
A Startup is defined as a business that is based on a new and Innovative idea. The business does not resemble to any traditional business module.
The company is formed by one or more people, with usually a small amount of investment. However, if you are financially sound then you can put in larger investments too, it doesn't matter.
You can also let your doors open for outside investors in exchange for a share in the company's turnover. As an entrepreneur, you will also have the option to draw financial assistance from other sources like; banks, personal contacts, and even donations.
Okay! Now that was the most simplistic definition of a Startup. It's time now to dig in deeper to unearth the technical understanding of the business model.
This will help in having more accurate knowledge about the business concept and gain confidence in realizing your ambition, to ultimately kick-start your own enterprise.
See, to begin with, your own startup company, you must at best consider the government's Startup India scheme. The scheme will not only provide you with financial assistance but, will also support your company's growth process, especially during the initial stages.
However, before registering for the government's business scheme, your organization must meet the scheme's eligibility norms. And they are;
- It is essential that your organization is based on a unique or creative business concept.
- Your company must have a realistic plan on how you're going to grow your business in future.
- The business you intend to establish as a Startup must be original and new.
- Your business must not be a reconstructed business entity that might have already existed in the past. Also you can't register a split up company under the scheme.
- You will require undergoing a certification process with the Department for Promotion of Industry and Internal Trade, also known as DPIIT.
- Your firm should not be older than ten years, from the time, when it was incorporated.
- The business entity, owned by you will be considered a Startup, only if, the entity's annual earning is or has been under 100 crores.
- The business enterprise run by you must vastly use digital means to operate.
- Generating scalable revenue, along with providing employment, should be your company's ultimate objective.
- Make sure that your company is registered under any of the three under-mentioned categories;
- A Private Limited firm.
- A Partnership organization.
- A Limited Liability Partnership (LLP).
- Your organization must be registered as a legal entity - Before applying for the Startup India program, you must first obtain certification from the Ministry of Corporate Affairs (MCA). The process is done online on the ministry's website. Further, you need to turn your organization into either one of the three as mentioned above, that is; a private limited company, an LLP, or a partnership organization.
- Startup online registration process- Firstly, you need to make a profile on the startup India webpage by filling up an online form. Thereafter, an OTP will be sent to your email, just submit the OTP and the process is complete.
- Acquiring DPIIT approval or Certificate- Now, this is I guess the most important point, after which, your organization becomes eligible for the Startup India benefits. For this log on to the site and click the DPIIT recognition tab, and then follow the required procedure.
- Documents necessary for DPIIT recognition- There are certain documents you need to present to complete the process of the certification, namely;
- Documents verifying your company's registration certificate that is in line with the Startup India's pre-conditions.
- You need to provide details of directors such as their name, photograph, and contact details.
- Present information showing the organization's social profile or a website URL.
- A copy of your PAN card or number.
- Exemption on taxation: Your company need not pay income tax for the initial 3 years. This will help you to have enough time and chance to gather adequate capital thus, allowing you to boost your business.
- Easy Registration process: You can easily register your company under the government's scheme, on the Startup India portal, and also on its mobile app. The whole procedure takes just 48 hours to complete.
- Sufficient funding for Startups: Your Startup business will be well-supported if you come across any funding issues. Hence, keeping that in mind, the GOI has allocated a sum of Rs10,000 crores (Rs100 Billion), to support Startups, across the nation.
- Simplified Startup regulations: Aspiring businessmen like you can enjoy a prompt and quick certification procedure, and save time. Your Startup certified under the government's initiative is entitled to self-certification compliance with three environments and six labor laws.
- Easy closure procedure of a company: In the event of insolvency or bankruptcy, you will be given 90 days time, to close down your business.
- Low Patent and IPR cost: You will be eligible for an 80% rebate on the patent acquisition process. The government's Startup program will also provide you with the best Intellectual Property Rights services, at a minimal cost.
- Obtaining Tenders: It is pretty tough to acquire government tenders for any company. But, your organization, if recognized under the scheme, will be prioritized for the process of acquisition of such tenders.
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- OYO Rooms - The Gurgaon-based online hotel booking portal has a valuation of USD9 billion, as of mid this year.
- The National Stock Exchange - Established in 1992, the Mumbai-based stock market has been valued at USD6.5 billion.
- Ola Cabs - Headquartered in Bengaluru, this car rental company has been valued at USD6.3 billion this year.
- Zomato - With a promising feature -- 'On-Time or free' the food delivery chain is valued at USD5.4 billion according to the ranking company.
- Dream11 - The online gaming and software company has achieved a valuation of USD5 billion, making it one of the unicorn companies in India.
- Udaan - This business-to-business (B2B) company has been able to touch the valuation mark of $3.1 billion this year.
- Razorpay - Achieving a USD3 billion valuation mark, the online payment company secured the ninth position on the list.
- Policybazaar - Established in 2008, the Gurugram-based fintech organization, recorded a valuation of USD2.4 billion this year.
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ROBBIE
Robbie is a wanderlust at heart who has experienced India's diverse landscapes and cultures. With over a decade of experience, he has turned into an adventure architect, crafting travel experiences that blend thrill, ancient traditions, and breathtaking discoveries.
