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Faculty:- D. Prabakaran M.Com., FCMA Practicing Cost Accountant

The Institute of Cost Accountants of India Erode Chapter An overview on Start-up Companies 20.07..2019-Saturday - Time 6-9 pm. Faculty:- D. Prabakaran M.Com., FCMA Practicing Cost Accountant. Introduction.

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Faculty:- D. Prabakaran M.Com., FCMA Practicing Cost Accountant

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  1. The Institute of Cost Accountants of IndiaErode ChapterAn overview on Start-up Companies20.07..2019-Saturday - Time 6-9 pm. Faculty:- D. Prabakaran M.Com., FCMA Practicing Cost Accountant

  2. Introduction • Startup India, initiated by the Government of India is a flagship initiative launched in January 2016. • This initiative is taken by the government of India to boost the ecosystem for supporting innovation and startups in India. Through this scheme, the government is looking forward to driving sustainable economic development and enhance employment opportunities in India. The government of India recently announced Startup India action plan to meet the requirements of this initiative

  3. Registration of Startup with DIPP • Startup recognition is granted by the department of industrial policy and promotion (DIPP) and approval in regards to tax benefits shall be provided by the inter-ministerial board of certification. • The tax benefit is available for both companies and LLP registered on or after 1st of April 2016 and with turnover not exceeding 25 Crores. This provision is available under section 80 IAC of the Income Tax Act, 1961.

  4. … • Registered partnerships are also considered under in normal startup scenario, but if you want to claim tax benefits registered partnerships are not eligible for the scheme. • Deduction to be allowed for any 3 Consecutive Assessment year out of 5 years (section 80 IAC(2)).

  5. Benefits for Startup Companies in India • Startups will be permitted to self-certify compliance with nine labour laws and environmental laws. In the case of labour laws, no inspection will be conducted for a period of three years. • Startup India enables companies to register through their mobile application and upload relevant documents. There will also be single window clearances for approvals, registrations and filing compliances among other things.

  6. Benefits (contd…) • Patent filing approach will be simplified. The Startup will enjoy a rebate of 80% of the fee in the patent application. The startup will bear only the statutory fees and the government will bear all facilitator fees. • The Startup India programme will encourage research and innovation among students who are aspiring entrepreneurs

  7. Benefits (contd…) • and seven new research parks will be set up to provide facilities for startups in the R&D sector. • Equal opportunities will be provided for both startups and experienced entrepreneurs. Earlier this was not possible because all applicants required either ‘prior experience’ or a ‘prior turnover’. But now, public appropriation norms have been relaxed for startups.

  8. How to Register STEP:1 • INCORPORATE YOUR BUSINESS • You must first incorporate your business as a Private Limited Company or a Partnership firm or • a Limited Liability Partnership You have to follow all the normal procedures for registration of any business like obtaining the certificate of Incorporation/Partnership registration, PAN, and other required compliances

  9. STEP:2 • REGISTER WITH STARTUP INDIA • Then the business must be registered as a startup. The entire process is simple and online. All you need to do is log on to the Startup India website ( https://www.startupindia.gov.in/content/sih/en/homepage. • html) and fill up the form with details of your business and upload certain documents.

  10. STEP:3 • DOCUMENTS TO BE UPLOADED (IN PDF FORMAT ONLY) • A) letter of recommendation must be proposed along with the registration form. Any of the following, • (i) An Incubator established in a post-graduate college in India has to provide a recommendation (regarding innovative nature of business) from in a format specified by the Department of Industrial Policy and Promotion (DIPP); OR • (ii) A letter of support by an incubator, which is funded (in relation to the project) by Government of India as part of any specified scheme to promote innovation; OR • (iii) An Incubator recognized by the Government of India has to provide a letter of recommendation (regarding innovative nature of business) in DIPP specified format; OR • (iv) Any Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel Network with not less than 20% in equity, duly registered with SEBI that endorses innovative nature of the business has A letter of funding; OR • (v) A letter of funding by Government of India or any State Government as part of any specified scheme to promote innovation; OR

  11. … • (vi) A patent filed and published in the Journal by the Indian Patent Office in areas affiliated with the nature of the business being promoted. • B) Incorporation/Registration Certificate • You need to upload the certificate of incorporation of your company/LLP (Registration Certificate in case of partnership) • C) Description of your business in brief • A brief description of the innovative nature of your products/services.

  12. STEP:4 • ANSWER WHEATHER YOU WOULD LIKE TO AVAIL TAX BENEFITS • Startups are exempted from income tax for 3 years. But to avail these benefits, they must be certified by the Inter-Ministerial Board (IMB). Start-ups recognized by DIPP, Govt. of India can now directly avail IPR related benefits without requiring any additional certification from IMB.

  13. STEP:5 • FINALLY, YOU MUST SELF-CERTIFY THAT YOU SATISFY THE FOLLOWING CONDITIONS • a) You must register your new company as a Private Limited Company, Partnership firm or a Limited Liability Partnership • b) Your business must be incorporated/registered in India, not before 5 years. • c) Turnover must be less than 25 crores per year. • d) Innovation is a must– the business must be working towards innovating something new or significantly improving the existing used technology. • e) Your business must not be as a result of splitting up or reconstruction of an existing business.

  14. STEP:6 • IMMEDIATELY GET RECOGNITION NUMBER • On applying you will immediately get a recognition number for your startup. The certificate of recognition will be issued after the examination of all your documents. • On subsequent verification, it is found to be obtained that the required document is not uploaded/wrong document uploaded or a forged document has been uploaded then you shall be liable to a fine of 50% of your paid-up capital of the startup with a minimum fine of Rs. 25,000.

  15. Thanks • Query plz • ?????

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