Startup certificate

Su-vastika Systems Private Limited is also certified by Startup India, which is a flagship initiative of the Government of India aimed at fostering the startup culture and creating a robust and inclusive environment for innovation and entrepreneurship in the country.

In India, the term “Startup Certificate” might not be the most precise wording. There isn’t a single certificate specifically called a “Startup Certificate.” However, there is a program called Startup India that recognizes startups and offers them various benefits. This recognition comes in the form of a DPIIT Certificate of Recognition for Startups.

Here’s a breakdown of the key points:

  • Startup India Recognition: This program by the Department for Promotion of Industry and Internal Trade (DPIIT) acknowledges businesses as startups.
  • DPIIT Certificate: Upon successful application and meeting eligibility criteria, a startup receives a DPIIT Certificate of Recognition for Startups. This doesn’t resemble a traditional certificate but is a digital record with a unique recognition number.
  • Benefits of Recognition: Holders of the DPIIT Certificate can avail themselves of various benefits offered by the Startup India initiative, including:
    • Tax exemptions for up to three years
    • Easier compliance with various regulations
    • Faster IPR processing
    • Access to government funding schemes

Who Can Apply:

  • Private Limited Companies
  • Limited Liability Partnerships (LLPs)
  • Registered Partnerships

Eligibility Criteria (broad guidelines):

  • The entity should be less than seven years old.
  • Turnover should be less than INR 100 crore in any of the previous financial years.
  • The entity should be working towards innovation, development of new products or processes, or creating a scalable business model with high potential for wealth or employment generation.

Obtaining the DPIIT Certificate:

The process typically involves submitting an online application through the Startup India portal along with supporting documents. The application is reviewed, and upon approval, the startup receives recognition and a unique recognition number.

The certificate you receive isn’t physically printed but a digital record with a recognition number. Officially called the DPIIT Certificate of Recognition for Startups, it unlocks a variety of benefits offered by the Startup India initiative. Here are some key advantages of obtaining this certificate:

  • Tax Exemptions: Qualifying startups can enjoy tax exemption on profits for up to three consecutive financial years out of their first ten years of operation. This benefit falls under Section 80 IAC of the Income Tax Act.

  • Reduced Compliance Burden: Startups with the certificate benefit from self-certification of compliance for six labor laws and three environmental laws. This simplifies the process and reduces administrative hassles. Additionally, for a period of five years following registration, startups are exempt from inspections under these labor laws.

  • Faster Patent Processing: The recognition expedites the processing of patent applications, saving valuable time for startups focusing on innovation.

  • Government Funding Schemes: The certificate opens doors to applying for various government funding schemes specifically designed to support startups. These schemes offer financial aid to help startups grow and develop.

  • Easier Public Procurement: Startup India certified businesses can participate in government tenders with relaxed norms compared to established companies. This facilitates participation in public procurement projects and increases potential business opportunities.

  • Reduced Capital Gains Tax: Investors in startups holding the DPIIT certificate may benefit from reduced capital gains tax on investments made in the startup through a Fund of Funds scheme.

  • Improved Credibility and Visibility: Having the recognition acts as a mark of legitimacy and demonstrates the government’s acknowledgement of the startup’s potential. This can enhance credibility and attract potential investors or partners.

  • Easier Winding Up: In case a startup decides to wind up its operations, the certificate allows for a more streamlined closure process compared to non-registered businesses.

Overall, the Startup India certificate offers a significant package of advantages that can be instrumental in a startup’s growth and success. It eases financial burdens, simplifies regulatory processes, opens doors to funding and opportunities, and enhances the startup’s overall standing in the business ecosystem.

Here are the resource for further information: