Entrepreneurship is flourishing in India, and if you are planning on starting a startup, there is no better time and place to do so. The Indian government also supports your startup ambitions with various schemes, tax breaks or incentives, and funding opportunities.
But, to use various schemes and schemes you do need to register as a startup in India under the Startup India initiative. No matter if you are just an idea or if you are actually running a small business, you will learn how to do startup registration in India from this guide (in a simple way and in a human way).
What is a Startup According to the Indian Government?
Before you get into the procedure, you should first check to see whether your business is classified as a startup under Indian law. Your business must:
- Be incorporated as a Private Limited Company, LLP or Partnership firm.
- Be less than 10 years old.
- Have a turnover not exceeding ₹100 crore (for any of the financial years since incorporation).
- Be working towards innovation, development, or improvement of products/services.
- Not have been previously incorporated through a rotation or reconstruction of an existing business.
Step-by-Step Process to Register a Startup in India
- Incorporate Your Business
- Register on the Startup India Portal
- Upload Required Documents
- Get DPIIT Recognition
- Apply for Other Benefits (Optional but Recommended)
Step 1: Incorporate Your Business
The first step is to register your business entity as either:
- A Private Limited Company under the Companies Act, 2013,
- A Limited Liability Partnership (LLP) under the LLP Act, 2008 or
- A Partnership Firm under the Indian Partnership Act, 1932
You will require:
- Director Identification Number (DIN)
- Digital Signature Certificate (DSC)
- Certificate of Incorporation This part usually takes place through the MCA portal at: www.mca.gov.in
Step 2: Register on the Startup India Portal
After your business has been legally incorporated, navigate to the official Startup India portal: https://www.startupindia.gov.in Set up your profile and click ‘Register Your Startup’.
You will need to provide:
- Business details
- Directors/Partners details
- Brief on your startup
- Details on how your startup is innovative.
Step 3: Upload Required Documents
Here’s what you’ll need:
- Certificate of Incorporation or Registration
- Details of the Directors/Partners
- Brief write-up of the innovative nature of your product/service
- Website or pitch deck (if available)
- PAN Number of the company
Tip: Keep the pitch deck tight, but powerful. Remember to cover the problem, proposed solution, market size and the innovation!
Step 4: Get DPIIT Recognition
Following your application submission on the portal, the next step is to obtain DPIIT approval (Department for Promotion of Industry and Internal Trade). Obtaining DPIIT recognition is an essential step to gain access to:
- Tax benefits (income tax and capital gains)
- Self-certification with labor and environmental laws
- Easier access to government tenders
- Financial support through the Fund of Funds program You’ll receive a Startup Recognition Number once approved.
Step 5: Apply for Other Benefits (Optional but Recommended)
Once you receive your DPIIT certificate, you will be able to submit the following applications:
- 80 IAC Tax Exemption (3 year income tax benefits)
- Angel Tax Exemption, under Section 56
- IPR Fast-Tracking and rebates for patent filing
- Access To startup incubators and seed funding schemes
Common Mistakes to Avoid
- Filling out inappropriate or incomplete documents
- Copy-pasting your startup description from other sources
- Avoiding DPIIT registration it is necessary to claim startup benefits
- Neglecting the financials of your startup
Final Thoughts
By registering a startup, you become eligible for funding, tax advantages, and interaction with others within the startup ecosystem in India. It is not just an application; it is a mark of legitimacy to show that you are serious about your work.
If you are building something innovative, do not delay; go ahead and register your startup today and take advantage of all the Indian startup ecosystem has to offer in 2025 and beyond!