7 Eligibility Criteria For Startup Company Registration

Recent years include exponential growth in the Indian startup business, stimulating innovation, job creation, and economic growth. Without the Startup India initiative, the government of India’s flagship program that supports and encourages new firms, the development would not have been possible. The requirements for registering a starting corporation must be known if you’re thinking about taking the thrilling route of being an entrepreneur. In this blog, we will work together to review the prerequisites and clear the path for your business ventures.

Now let’s get into the 7 eligibility criteria for startup company registration:
1. Business Structure
Your entity must be registered as one of the following legal entities in order to be eligible for startup company registration:
- Private Limited Company
The most common structure utilized by business owners is the private limited company, which provides simplicity in acquiring capital as well as flexibility and limited liability.
- Partnership
A partnership firm is a business managed by two or more people who share responsibilities and earnings.
- Sole Proprietorship
A sole proprietorship, in which a single person controls and runs the entire company, is the most basic kind of ownership.
- One Person Company (OPC)
The company must be founded as an OPC and have a single owner in order to be registered as an OPC.
- Limited Liability Partnership (LLP)
An excellent option for companies seeking a hybrid structure, LLPs combine the advantages of limited liability with the benefits of a partnership.
For registration to go smoothly, conformity with the Companies Act of 2013 or other applicable partnership rules must be guaranteed.
2. Applicant’s age
According to the system, candidates have to be citizens of India and be at least eighteen years old. This guarantees that program participation is limited to those who satisfy the requirements for legal age. The scheme’s goal in imposing this age restriction is to only involve people who are old enough to comprehend and take advantage of the opportunities it presents.
3. Age of the Company
Startup India offers its assistance to businesses that are just getting started. As a result, your business should only be a few years old—no more than ten years from the date of formation or registration. This criterion promotes innovation and dynamism by encouraging the incorporation of up-and-coming players into the startup ecosystem.
4. Turnover Limit
Another deciding aspect is your startup’s financial strength. Your company’s turnover in any fiscal year following its establishment cannot exceed ₹100 crore in order to be eligible for registration. This cutoff point guarantees that early-stage and expanding firms can reap the rewards of the Startup India initiative, accelerating their path to success.
5. Innovation and Technology Orientation
Every prosperous startup is built on creativity and technologically advanced solutions. The goal of your endeavor should be to create, implement, or market novel goods, systems, or services. When registering a startup firm, it is essential to demonstrate a dedication to innovation, regardless of the type of innovation—disruptive technologies, creative business models, or intellectual property-driven solutions.
6. Original Entity
The promoters had to have started the business from the beginning rather than destroying or rebuilding an existing one to satisfy the standards. This guarantees that, as opposed to merely reusing already-existing businesses, the startup registration procedure is in line with the goal of promoting innovation and entrepreneurship.
7. Validation from the Inter Ministerial Board
Getting an Inter-Ministerial Board (IMB) certificate of recognition is necessary for supporting your startup’s eligibility. The IMB assesses your company’s innovativeness and potential impact to confirm that it qualifies for registration under the Startup India program. To get IBM’s support, you must make a strong case that highlights your startup’s innovation quotient.
Benefits for your startup company
Numerous advantages, such as tax exemptions, self-certification for compliance, access to investment schemes, networking possibilities, and streamlined winding-up procedures, can be obtained by registering your firm under the Firm India initiative. Accepting these advantages can accelerate the growth trajectory of your firm and help it achieve long-term success.
Start Your Own Business
Now you are prepared to start your own business since you have a firm grasp of the requirements for registering a startup company. Use the resources to develop your creative ideas into profitable ventures and add to the growing startup scene in India.
Are you ready to realize your dream? Enter the world of entrepreneurship and turn your startup tale into a success that motivates future generations.You can connect with Clearbiz for starting your own company in India. If you have any further doubt, Contact us today for more information.