Self-certification is introduced to decrease the regulatory burden on the startups and allow the firm to focus on the main business.

Benefits

• It allows a simple Startup India registration online process of self-certifying conformity for six labor laws and 3 Environmental laws.
• The case of Environmental Laws includes the startups covered under the “white category” as described by Central Pollution Control Board (CPCB) would have the authority to self-certify compliance, and random checks would be conducted.
• In the case of Labour Laws, for five years, no inspection would be carried out. However, the assessment will only be carried out on the receipt of a verifiable and credible complaint of infringement in the form of writing.

Environmental Laws

• The Water (Prevention & Control of Pollution) Act, 1974
• The Air (Prevention & Control of Pollution) Act, 1981
• The Water (Prevention & Control of Pollution) Cess (Amendment) Act, 2003

Labour Laws

• The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952   
• The Building and Other Constructions Workers’ (Regulation of Employment & Conditions of Service) Act, 1996
• The Employees’ State Insurance Act, 1948
• The Contract Labour (Regulation and  Abolition) Act, 1970
• The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979
• The Payment of Gratuity Act, 1972

Eligibility 

DPIIT recognized startups that are incorporated within five years. 

Startup India Registration Process For Self-Certification

• Visit the Shram Suvidha Portal affiliated with the Ministry of Labour and Employment.
• Now, register yourself on the portal and log in.
• As you log in, click on the “Is any of your establishments a setup?”
• Later, follow the instructions given there.

Benefits 

• This exemption falls under Section 56(2) (VIIB) of Income Tax.
• Investment into eligible startups in companies with an annual turnover above Rs 100 crore or Rs 250 crore should be excluded under the Section 56 (2) VIIB of the Income Tax Act.
• Consideration of shares obtained by eligible startups would be excluded under Section 56 (2) (VIIB) of the Income Tax Act.
• Investment into eligible startups by authorized investors, AIFs (category-II), Non-Residents, and listed companies with a turnover above Rs 100 crore or Rs 250 crore should be excluded under Section 56 (2) VIIB of the Income Tax Act.

Eligibility

• The firm should be a private limited company. 
• A firm should not engage in investing in the specified asset classes.
• DPIIT should recognize the startup. 
• Startup firms should not invest in immovable property, transport vehicles over Rs 10 lakhs, loans, and advances, capital contribution to other entities excluding ordinary business courses. 

Startup India Registration Process of Section 56 Exemption

• Register yourself on the portal of Startup India.
• As you register yourself, obtain the DPIIT recognition.
• Fill in the form of Section 56 Exemption.
• Within 72 hours of application submission, you will receive an email.

Benefits

Startups can be spared from paying the income tax for three consecutive years from the first ten years since its incorporation. 

Eligibility 

• The DPIIT should authorize a firm.
• Under Section 80IAC, private limited companies and LLP will acquire the Tax Exemption.
• The startup should be commenced on 1st April 2016. 

Startup India Registration Process For Tax Exemption Under 80IAC

• Register your firm on portal Startup India.
• Before registration, apply for DPIIT.
• Fill in the details along with affixing documents. 

Documents Required For Tax Exemption Under 80IAC

• LLP deed or Memorandum of Association.
• If any, submit the board resolution.
• Income tax return of past three financial years.
• Annual account of startup of past three financial years.

Objectives

• Unchallenging commencement and winding up of the company allows the entrepreneurs to reallocate their capital and resources for more productive avenues.
• To allow the entrepreneurs to evaluate the new and innovative ideas, excluding the challenging and long winding-up process.

Benefits of Startup India registration process

• According to the Insolvency and Bankruptcy Code, 2016, startups with accessible debt structures or that have met the particular criteria can wind up within 90 days of filling the application for insolvency. 
• Upon the appointment of an insolvency professional, the liquidator would be accountable for the immediate closure of the organization, sale of assets, and repayment to creditors depending on the distribution waterfall determined by IBC.
• An appointed insolvency professional will be managing the company, which includes the liquidation of assets and paying to creditors in 6 months of the appointment of the insolvency professional. 

Public procurement refers to how the government and state-owned enterprises procure goods and services from the private sector. Additionally, government enterprises have remarkable purchasing power and the ability to represent the largest markets of startups.

The principal motive of public procurement is to allow business startups to participate in the procurement process effortlessly. Along with that, it enables the startups to approach another potential market for their products. 

Benefits of Startup India registration process

• Provides the chance to register the product on the government E-Marketplace (platform for procurement of goods and services). DPIIT startups can register themselves as sellers and sell their products and services to government organizations directly.
• DPIIT recognized startups had been excluded from submitting the EMD (Earnest Money Deposit) or bid security when filling the government tender. 
• To promote startups, exclude the manufacturing sector startups from the criteria of “prior experience or turnover” without affecting the standard quality or technical specifications. Additionally, the startups also have to signify the prerequisite ability to carry out the project depending on the requirements and have their manufacturing facilities in India.

Eligibility for Startup India registration process

DPIIT should recognize startups.