Startup Company registration in India

startup company Registration

What is the definition of Startups?

  1. A company established through the Legal structure of an LLP, OPC or a Private Limited company as governed by the Central Government of India Ministry of Corporate Affairs.
  2. A company should have one or more entrepreneurs with a shared vision to create unique and irreplaceable products or services.
  3. A startup is generally self-funded and seeks support from Venture capitalists and other investors to run the company.

Type of Startups

In a hypothetical situation and not a thumb rule, we can name startups in different categories:

  1. E-commerce Startups: Companies in the e-commerce business and tech solutions are primarily the base to address issues and challenges in day-to-day business and people’s lives. These startups focus on business scalability to address some common issues of society. The Large Venture Capitalists have heavily invested in companies like Flipkart and Amazon.
  2. Tech Startups: Solving some of the immense ecosystem challenges we have seen in the last 20 years, companies like Google, Facebook, Uber, and Twitter have grown substantially in their respective fields. Their revenue and income have increased considerably with the multifold growth in their Home country and abroad.
  3. Local or Small Business: A small entrepreneur opening a business of some of the standard categories like Grocery chains, barber shop chains, or many such day-to-day requirements
  4. Startups by Hobbies: Sometimes, people do something for a hobby that translates into good money and becomes a scalable multi-city business.
  5. Ancillary Startups: Sometimes larger companies ask for new concepts and products from the entrepreneurs; if available, they buy or invest in these companies to grow them. Flipkart, for example, has its own delivery and warehousing company for distribution.
  6. Social or Non-Profit Startups: These startups are funded for a specific reason, and the amount spent is for non-profit purposes.

Startup India Registration Login

Though there are some specific registrations each company has to take based on their business and legal structure type, we will list a few common ones.

  1. Company incorporation: First and foremost, start a company by forming it with the Ministry of Corporate Affairs (MCA) and get a Certificate of Incorporation.
  2. Commencement of Business: Once the Bank account is opened and the capital amount is deposited in the Bank, we have to file with MCA for the commencement of the business.
  3. GST registration: After the above two registrations, we should apply for a GST number so that with the sale and purchase, the Indirect Tax Department is informed and collects the GST monthly. GST registration is also a must for filing monthly and annual returns.
  4. MSME Registration: The Government of India, for the benefit of Small and Medium enterprises, started MSME registrations, which enable companies to dispute resolution through the MSME portal.
  5. Startup India Registration: This registration enables the new startup to get grants and cheap rates of funding from the Government if they are in the field of innovation and tech development, which the Central Government approves.
  6. Patent: Get a patent registered for all your valued intellectual property, which, if replicated, would be a tremendous personal and financial loss to the founders and companies. The Patent is the process that helps protect it and keep it with you, and no company can make the product or process if it is granted to you.
  7. Trademark: The business must be trademarked for Names, Brands and Logos so that no other person can use them in the future. Trademarks are different from patents.
  8. Shops and Establishment: Some states have specific requirements for establishing the place of business, and Shops and Establishment registration is required. It is renewed Annually.
  9. Professional Tax: All companies and employees have to be included in Professional Tax payments monthly, and for this, a Professional Tax registration is required for all Startups.
  10. Provident Fund: Once the company crosses 20 Employees, all the employees compulsorily fall under the Provident Fund (Social Security), and a certain % of salary is deducted monthly, and the employer contributes an equal amount. Registration is taken where all payments are deposited monthly, including returns.
  11. Employee State Insurance (ESI): Once the company crosses 10 Employees, all the employees compulsorily fall under the ESI (Social Security) if their monthly salary is not crossed 21,000, and a certain % of the salary is deducted monthly, and the employer contributes % amount. ESI provides medical, maternity, accident, and Health-related security through government hospitals nationwide. Registration is taken where all payments are deposited monthly, including returns.
  12. Gratuity: Applicable to all companies when the company starts ageing, and the employee stays back more than 5 years.
  13. TAN & PAN-based credentials creation for ITR and TDS filing: A registration is created for PAN and TAN to ensure all the amounts deducted against the withholding tax are deposited against the company name in the registration login created. This is compulsory as it discharges all Income tax liabilities of the company for deducting TDS on the payment to vendors. A PAN-based login is required to ensure all company income tax filing is done as and when necessary.

Indian Startup Registration

A Startup can be registered as an LLP or a Private Limited Company in India. A brief explanation for each type is as follows:

  1. Legal Liability Partnership LLP: This is a type of partnership firm where the liability of the partners is limited to their business with restriction of movement of shareholding. Transfer of Shareholding is not free, and it needs the consent of all the partners. The movement of funds in and out of the LLP is less restricted. Other parts of compliance and registration are the same as legal setups.
  2. Private limited company: The company’s capital is divided into the number of shares offered to each shareholder and the equity subscribed and paid. At any given time, the shares are transferrable in part or in whole to other shareholders on the approval of the Board of Directors. Money movement in and out is very restricted.

Startup Company Registration Documents Required

  1. Documents required for various registrations
    • LLP & Company Registration
      • Name, contact number and email ID for the Proposed Partners / Directors.
      • PAN, Aadhar and passport-size photo of Proposed Partners / Directors.
      • Bank statement (1 page) / Mobile Phone Bill of Proposed Partners / Directors.
      • Specimen signatures of all Proposed Partners.
      • Business Name (6 Names with object)
      • Electricity bill of premises where the LLP is proposed to have a registered office.
      • NOC from the owner of the registered office.
      • Brief description of the leading business activities of the proposed LLP.
      • DIN no. if available
    • Documents required for Trademark Registration.
      • Name and Address of the applicant
      • Trademark Name
      • Product details
      • Logo
      • Signed copy of Power of Attorney ( POA)
    • Documents required for GST & Shops and Establishment Registration
      • PAN
      • Aadhar
      • Name of the company and incorporation Certificate
      • Bank Account Details
      • Nature of business and goods and services sold
      • The address and rental agreement includes a No Objection Certificate (NOC) from the landlord.
      • Electricity bill or Telephone not older than 2 months
      • Director KYC including PAN, Telephone, Email, DIN
  1. For other registrations, contact cfoangle.com and our representative shall get back to you with the required documents.

CFO Angle is the company helping to register a startup in India and does Startup registration in India Online. In the last 3 years, we have helped more than 50+ startups in small and large businesses become registration- and compliance-ready for their companies.

CFO Angle is the leading company doing the startup company registration process in India and helping companies ensure all India Startup Registration is complied with.

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