How to register startup in India

Registering a startup in India involves a step-by-step process that ensures legal compliance and smooth functioning.

Step-by-Step Guide to Registering a Startup in India

1. Choose the Right Business Structure

• Private Limited Company (Pvt Ltd) - Most preferred for startups (scalable, investor-friendly).
• Limited Liability Partnership (LLP) - Less compliance, suitable for professional firms.
• One Person Company (OPC) - Ideal for single founders.
• Partnership Firm - Easy to form, but not recommended for startups looking to raise funding.

2. Register Your Business Entity

Depending on the chosen structure:

For Private Limited Company / OPC

• Apply for Digital Signature Certificate (DSC) - For all proposed directors.
• Director Identification Number (DIN) - Issued with SPICe+ form.
• Name Approval (Part A of SPICe+) - Choose a unique name via the MCA portal.
• Incorporation (Part B of SPICe+) - Submit:
• MOA & AOA (Memorandum & Articles)
• PAN, TAN application
• Registered office address proof
• ID/address proof of directors
• Certificate of Incorporation (COI) - Issued by the ROC with PAN & TAN.

For LLP

• File RUN-LLP for name reservation.
• File Fillip for incorporation.
• Draft & file LLP Agreement within 30 days of incorporation.

3. Register under Startup India Scheme

• Go to Startup India Portal
• Create a profile.
• Upload:
• Certificate of Incorporation
• PAN
• Description of your product/service/innovation
• Get DPIIT Recognition (Department for Promotion of Industry and Internal Trade).

Benefits

• Income tax exemption under Section 80-IAC
• Angel tax exemption under Section 56(2)(viib)
• Fast-tracked patent and trademark applications

4. Apply for Other Mandatory Registrations

• GST Registration (if turnover > ₹40 lakh or interstate supply)
• Shops and Establishment License (if employing staff)
• Professional Tax (varies by state)
• ESIC & EPFO Registration (mandatory if employee threshold crossed)

5. Open a Bank Account

• Use the Certificate of Incorporation, PAN, and Board Resolution (for Pvt Ltd) to open a current account.

6. Maintain Compliance

• ROC Filing - Annual filings (AOC-4, MGT-7)
• Income Tax Return
• GST Returns (if applicable)
• Audit Requirements - Based on turnover and type of entity

Key Documents Checklist

• PAN & Aadhaar of directors/partners
• Passport-sized photos
• Address proof of business
• Utility bill for registered office
• NOC from the owner (if rented space)

CA's Role in the Process

• Advising on optimal structure and tax implications
• Preparing and filing incorporation documents
• Handling statutory registrations (GST, PF, PT, etc.)
• Bookkeeping, audit, and annual filings
• Helping with DPIIT Startup Recognition
• Providing legal and financial advisory