Why startup and new business is a good idea in India now (2022)?

This past year has demonstrated that why startup and new business is a good idea in India now. In fact, they are more resilient than most people believe. When faced with obstacles such as remote work, huge industry, market changes, a whole new reality, the thing that helps startups are a flexible, innovative, and agile culture.

Startups' capacity to adjust and adapt quickly has been outstanding, and many of them have continued to develop and increase their teams.

The reasons why startup and new business is a good idea in India now are:

• You won't get bored because you will learn something new every day.
• The work culture is resourceful and creatively exploring.
• Flexibility - The focus of startups is on quality than quantity. That means the work will be more efficient.
• New ideas with innovative ways of thinking and doing tasks.
• Team of highly hardworking, talented and ambitious people with the will of doing the impossible.
• Professional Opportunities and Personal Growth.

Indian Government Offers Following Benefits to Startups

Now, let me tell you why startup and new business is a good idea in India now to avail various government benefits.

Cost reductions

The government also publishes a list of patent and trademark facilitators. They will offer high-quality Intellectual Property Rights services, such as patent examinations that are completed quickly and at a lesser cost. All facilitator fees will be covered by the government, leaving just the statutory fees to be covered by the startup. The cost of filing patents will be reduced by 80% for them.

Funds are Easily Accessible

The government has established a fund of 10,000 crore rupees to provide venture financing to companies. To encourage banks and other financial institutions to provide venture capital, the government is also issuing guarantees to lenders.

Three-year tax EXEMPTION

Startups will be free from paying income tax for three years if they obtain an Inter-Ministerial Board certification (IMB).

Easy application for Tenders

Government tenders are open to startups. They are exempt from the "previous experience/turnover" requirements that apply to regular businesses responding to government tenders.

Research and Development Facilities

Seven additional Research Parks will be established to provide facilities for R&D startups. 

No time-consuming regulations to Comply

To save time and money, certain compliances have been streamlined for startups. Startups will be able to self-certify compliance with nine labour and three environmental rules (through the Startup mobile app).

Investors can save money on Taxes

People who invest their capital profits in government-run venture funds will be exempt from capital gains taxes. This will assist startups in attracting further investors.

Get to know other Business Owners

The government has proposed holding two startup fests each year, one on a national level and one on an international level, to bring together the numerous stakeholders of a startup. This will open up a lot of doors for networking.

The government is very supportive of new businesses. They reap enormous benefits, which is why more people are starting businesses.

I hope now you have no doubt in why startup and new business is a good idea in India now.

Steps to Getting Your Startup Registration with Startup India Scheme

Step 1 - Incorporate your company

You must first form a Private Limited Company Registration Online, a Partnership Firm, or a Limited Liability Partnership to start your business. 

You must follow all of the standard steps for registering a business, including acquiring a Certificate of Incorporation/Partnership Registration, a PAN, and other legal requirements.

Step 2 - Create an account with Startup India.

The company must then be registered as a startup. The entire procedure is straightforward and can be completed online. All you have to do is go to the Startup India website and fill out a form with information about your company. 

Next, input the OTP that was delivered to your e-mail address, as well as additional information such as the startup as the type of user, the name and stage of the startup, and so on. 

The Startup India profile is established after these facts are entered.

Startups can apply for various acceleration, incubator/mentorship programmes, and other challenges on the website after creating a profile.

Also, gain access to resources like the Learning and Development Program, Government Schemes, State Policies for Startups, and pro-bono services.

Step 3 - Obtain DPIIT Certification

The Department for Promotion of Industry and Internal Trade (DPIIT) Recognition is the next step after creating a profile on the Startup India website. 

This recognition allows startups to take advantage of benefits such as access to high-quality intellectual property services and resources, relaxation of public procurement rules, self-certification under labour and environmental laws, ease of company winding up, access to Fund of Funds, tax exemption for three years, and tax exemption on investments above fair market value.

If you are a new user, click the 'Acquire Recognised' button to get DPIIT Recognition. 

If you already have an account, go to the 'Dashboard button' and then to 'DPIIT Recognition.'

Step 4 - Application for Recognition

The page titled 'Recognition Application Detail' appears. 

On this screen, under the Registration Details section, click 'View Details.' Fill out the 'Startup Recognition Form' and then hit the 'Submit' button.

Step 5 - Registration Documents

• Incorporation/Registration Your startup's certificate
• Directors' Contact Information
• In the event of a validation/early traction/scaling stage startup, a proof of concept such as a pitch deck/website link/video is required.
• Details about patents and trademarks (Optional)
• PAN (Personal Identification Number)

Step 6 - Identifying Number

That concludes our discussion. You will receive a recognition number for your startup as soon as you apply. The certificate of recognition will grant after all of your documents have been examined, which normally takes two days after you submit your information online.

However, exercise caution when submitting documents.

If the authorities find that after further verification that the document are missing, incorrect or fake, you will be fined 50% of the startup's paid-up capital, with a minimum fine of Rs. 25,000.

4 Steps for Company Registration Online in India

In India, there are four primary steps for company registration online: 

Step 1 - Acquire a digital signature certificate (DSC)

The Information Technology Act of 2000 contains provisions for the use of digital signatures on electronic documents to protect the security and authenticity of the papers filed electronically.

Step 2 - Obtain a Director Identification Number (DIN) 

With the addition of sections, 266A to 266G of the Companies (Amendment) Act, 2006, the notion of a Director Identification Number (DIN) introduces for the first time.

Step 3 - Create an account on the MCA portal by registering as a new user at mca.gov.in.

Step 4 - Form a corporation or file an application for a business licence.