Sage-Tips

Can a sole proprietorship be registered as startup?

Entrepreneurs are often confused on selecting the best form of the legal entity for their Startup Ventures. Sole Proprietorship firm are best suited for Sole Entrepreneurs / Single Owner Business, where the Individual Owner will act as a Sole Proprietor.

What type of companies are eligible for startup scheme?

Eligibility For Startup Registration

• The company to be formed must be a private limited company or a limited liability partnership.
• It should be a new firm or not older than five years, and the total turnover of the company should be not exceeding 25 crores.

How can I get government funding for startups in India?

1. Startup India Network. Browse through the profiles of over 490,000 users. Startup India Showcase.
2. Connect with Incubators (770) Find incubators in your region that can support your startup’s growth.
3. Connect with Government (62) Reach out to the relevant Ministries or Departments for potential partnership opportunities.

Does sole proprietorship need to be registered in India?

No, Sole Proprietorship Registration is not mandatory. It is optional on whether a person intends to register his sole proprietorship or not. Although, banks insist on getting sole proprietorship registered if you intent to open a bank account in the name of your business, but as per law – it is not mandatory.

How can sole proprietor business is started?

There is no government registration needed in order to start a sole proprietorship business in India. You don’t have to go to an online registration portal and fill up a form or submit any documents. However, you do need to open a current account with a bank in the name of the business.

What qualifies as a startup?

Startups are companies or ventures that are focused on a single product or service that the founders want to bring to market. These companies typically don’t have a fully developed business model and, more crucially, lack adequate capital to move onto the next phase of business.

Who can register as startup in India?

You are a Private limited company, an LLP or a partnership firm. Your business must be incorporated or registered in India, not before 5 years. Your company’s turnover must not be more than Rs 100 crore. The company has to keep innovating something new or making the existing system better in its own way.

What is Startup India initiative?

Startup India is a flagship initiative of the Government of India, intended to catalyse startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India.

Under which law of sole proprietorship is created?

Sole Proprietorship registration under Shop and Establishment Act. A sole proprietor can register his business under the Shop and Establishment Act, if he has a shop as a place of business.

How can I start a sole proprietorship in India?

Documents Required For A Sole Proprietorship

1. Aadhar Card. Aadhar number is now a necessity for applying for any registration in India.
2. PAN Card. You can’t file your income tax return until you get a PAN.
3. Bank Account.
4. Registered Office Proof.
5. Registering as SME.
6. Shop and Establishment Act License.
7. GST Registration.

What are the eligibility criteria for start up India scheme?

Start-Up India Scheme Eligbility Criteria 1 Vintage A startup applying for this scheme should not have more than 5 years of existence. 2 Age Individuals applying for this scheme must have an age of more than 18 years. 3 Company Type To apply under this scheme, a company should be a partnership or a private limited firm.

What is Startup India?

Startup India is a flagship initiative of the Government of India, intended to build a strong ecosystem that is conducive for the growth of Startup businesses, to drive sustainable economic growth and generate large scale employment opportunities. The Government through this initiative aims to empower Startups to grow through innovation and design.

How can I get government support for my startup in India?

The Government of India’s flagship initiative to promote a robust startup ecosystem in India. Get recognised to avail benefits ranging from tax exemption to patent support. Search by sector, ministry or department to find government schemes and grants relevant to your startup or idea.

What are the tax exemptions for startups in India?

Eligible startups can be exempted from paying income tax for 3 consecutive financial years out of their first ten years since incorporation. Click here for the original policy notification outlining details of income tax exemptions. Register on the Startup India portal.