Starting a business in India has never been more exciting or supported, especially with initiatives like the Startup India Scheme and DPIIT recognition. However, proper registration and compliance are critical to ensure smooth operations and eligibility for government incentives.
This step-by-step guide covers everything you need to know to register your startup in India, from choosing the right business structure to availing tax exemptions and opening a business bank account.
Step 1: Choose the Right Business Structure
Your choice of structure depends on your business goals, number of founders, scalability, and compliance appetite:
|
Structure |
Ideal For |
Key Features |
|
Private Limited Company (Pvt Ltd) |
Scalable startups, fundraising |
Separate legal entity, high compliance, investor-preferred |
|
Limited Liability Partnership (LLP) |
Professional service firms |
Limited liability, lower compliance, no equity shares |
|
One Person Company (OPC) |
Solo founders |
Limited liability, corporate identity |
|
Partnership Firm |
Small businesses |
Easy to form, not ideal for scaling or funding |
Step 2: Register Your Business Entity
The registration process depends on your selected business structure:
For Private Limited Company / OPC
- Step 1: Obtain Digital Signature Certificates (DSC) for all proposed directors.
- Step 2: Apply for Director Identification Number (DIN) via SPICe+ (Part B).
- Step 3: Reserve the company name using SPICe+ (Part A).
- Step 4: File for Incorporation:
- MOA & AOA (Memorandum and Articles of Association)
- PAN & TAN application
- Proof of registered office
- Identity and address proof of directors
Upon approval, you’ll receive the Certificate of Incorporation along with PAN and TAN.
For LLP
- Reserve name via RUN-LLP.
- File FiLLiP form for incorporation.
- Draft and file LLP Agreement within 30 days.
Step 3: Apply Under the Startup India Scheme
Unlock the full potential of your startup with government recognition:
- Register on the Startup India Portal
- Upload required documents:
- Certificate of Incorporation
- Company PAN
- Business brief (product/service/innovation details)
- Receive DPIIT (Department for Promotion of Industry and Internal Trade) Recognition.
Key Benefits:
- Income tax exemption under Section 80-IAC (for 3 consecutive years)
- Angel tax exemption under Section 56(2)(viib)
- Fast-track IPR applications (trademarks & patents)
- Access to startup funding schemes
Step 4: Register for Statutory Compliances
Depending on your business activities and location, apply for:
- GST Registration (Mandatory if turnover > ₹20 lakh or interstate supply)
- Shops & Establishment License (for offices employing staff)
- Professional Tax (varies by state)
- ESIC & EPFO (mandatory if employee threshold is crossed)
Step 5: Open a Business Bank Account
Once you receive your Certificate of Incorporation:
Submit:
- COI (Certificate of Incorporation)
- Company PAN
- Board Resolution (for Pvt Ltd)
This account will be essential for all financial transactions and compliance filings.
Step 6: Maintain Post-Incorporation Compliance
A startup’s journey doesn’t end at incorporation—it starts there!
- ROC Filings: File AOC-4, MGT-7 annually with the Registrar of Companies.
- Income Tax Filing: File ITR based on business structure.
- GST Returns: If registered under GST.
- Audit: Based on threshold turnover or legal requirements.
Documents Checklist for Startup Registration
- PAN & Aadhaar of directors/partners
- Passport-sized photographs
- Electricity bill or rent agreement for registered office
- NOC from property owner (if applicable)
- Organisation DSC
Role of a Chartered Accountant (CA)
A qualified Chartered Accountant can simplify the entire startup journey:
- Guide on selecting the ideal structure
- Drafting and filing incorporation documents
- Assisting with registrations (GST, PF, PT, etc.)
- Accounting, bookkeeping & annual compliance
- Assistance in obtaining DPIIT Startup India recognition
- Advisory on legal & financial frameworks
Final Thoughts
The Indian startup ecosystem is thriving, and with government support through Startup India, DPIIT, and tax incentives, there’s never been a better time to launch your venture. However, success starts with getting the foundation right—and that means registering your startup correctly.
Need Help Setting Up Your Startup?
G R Prasad & Associates specializes in startup registration, DPIIT recognition, tax advisory, and ongoing compliance. We’ve helped hundreds of entrepreneurs launch and grow successfully.
📞 Contact us today for a free consultation.
📧 Email: info@grprasad.com
🌐 Website: www.grprasad.com