Startup India Registration In chennai
By the creation of employment prospects in the Indian economy, the Startup India registration in Chennai procedure has expanded the horizons of development. This program’s main goal is to encourage the expansion of start-ups in India.
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Overview of Startup India Registration in Chennai
Intellecto Filings offers to register a Startup India Registration In chennai, several steps must be completed. First, a Digital Signature Certificate (DSC) and Director Identification Number (DIN) must be obtained. These are required for filing documents with the Ministry of Corporate Affairs (MCA). After obtaining name approval from the MCA, the Memorandum of Association (MOA) and Articles of Association (AOA) must be filed. Upon successful filing, the MCA will issue a Certificate of Incorporation, which is proof that the company has been registered. Finally, the company can open a bank account and begin its operations, while adhering to all applicable laws and regulations of the local state government.
Eligibility For Startup India Registration in Chennai
One of the major advantages of registering a startup as a company is access to funding.
- To be eligible, startups must be incorporated as a private limited company, registered partnership firm, or a limited liability partnership.
- Additionally, the startup must be less than seven years old and have an annual turnover of less than Rs. 25 crores.
- The startup must also be working towards innovation, development, deployment, or commercialization of new products, processes, or services driven by technology or intellectual property.
Benefits of Startup India Registration in Chennai
One of the major advantages of registering a startup as a company is access to funding.
- This includes venture capital, angel investors, and other sources of capital. Additionally, registering a startup as a company gives it credibility in the eyes of potential customers, partners, and investors.
- It also provides certain tax benefits, such as deductions or credits that can help reduce the tax burden.
- Furthermore, registering a startup as a company provides limited liability protection, meaning that if something goes wrong with the business, the owners will not be held personally liable for any debts or losses incurred by the company.
- Lastly, registering a startup as a company can give it a more professional image, which can help to attract customers, partners, and investors who may be more likely to do business with a registered company than an unregistered one.
Checklist for Startup India Registration in Chennai
- Business Plan: A comprehensive business plan should be prepared that outlines the company’s goals, objectives, strategies, and financial projections.
- Business Name: A unique name should be chosen for the company that is not already in use by another business.
- Business Structure: The business structure should be determined, such as a sole proprietorship, partnership, limited liability company (LLC), or corporation.
- Business Licenses and Permits: Depending on the type of business and location, certain licenses and permits may be required to operate legally.
- Tax Identification Number: A federal tax identification number (EIN) must be obtained from the Internal Revenue Service (IRS).
- Bank Account: A business bank account should be opened to keep personal and business finances separate.
- Accounting System: An accounting system should be established to track income and expenses.
- Insurance: Depending on the type of business, certain types of insurance may be required or recommended.
Document Required for Startup India Registration in Chennai
- Business Plan: A business plan is a document that outlines the goals and objectives of your business, as well as the strategies you will use to achieve them. It should also include a financial plan and a marketing plan.
- Articles of Incorporation: This document is filed with the state in which you are registering your business. It outlines the basic information about your company, such as its name, address, and purpose.
- Operating Agreement: This document outlines the roles and responsibilities of each member of the company, as well as how decisions will be made and how profits will be distributed.
- Tax Identification Number: You will need to obtain a federal tax identification number from the IRS in order to open a business bank account and file taxes.
- Business Bank Account: You will need to open a business bank account in order to keep your personal and business finances separate.
- Business Licenses and Permits: Depending on the type of business you are starting; you may need to obtain certain licenses or permits from your local government in order to legally operate your business.
Process for Startup India Registration in Chennai
- Choose a Business Structure: The first step in registering a startup company is to decide on the type of business structure that best suits the company’s needs. The most common business structures are sole proprietorship, partnership, limited liability company (LLC), and corporation.
- Choose a Business Name: Once the business structure has been chosen, the next step is to choose a business name. The name should be unique and should not be similar to any existing business names.
- Register the Business: After choosing a business name, the next step is to register the business with the state or local government. This process typically involves filing paperwork with the Secretary of State or other relevant government agency.
- Obtain Licenses and Permits: Depending on the type of business, certain licenses and permits may be required in order to legally operate. These licenses and permits can vary from state to state, so it is important to research what is required in the specific area where the business will be located.
- Open a Business Bank Account: Once all of the necessary paperwork has been filed and licenses and permits have been obtained, it is time to open a business bank account. This will allow for easier tracking of expenses and income, as well as provide access to credit and other financial services.
- Set Up Accounting System: Setting up an accounting system is essential for any business, especially for startups. This will help keep track of expenses, income, taxes, and other financial information. It is important to choose an accounting system that is easy to use and understand.
Our Support
Registering a Startup Company can be a complex and confusing process, with many requirements and documents to prepare, as well as pre-incorporation and post-incorporation compliances to adhere to. Failure to comply with the specific mandates of the Ministry of Corporate Affairs (MCA) can result in hefty penalties and late fees. Professional assistance is recommended to ensure a smooth and successful registration process.
FAQ
What is the validity of Startup Recognition Certificate?
The Startup Recognition Certificate is valid for up to 10 years from the date of incorporation/registration, or until its turnover in any previous year does not exceed Rs. 100 crores, whichever comes first.
What is the Corporate Tax applicable?
From FY 2019-20, a new provision has been added to the Income-tax Act to promote growth and investment. This provision allows domestic companies the option to pay income-tax at a rate of 22%, provided they do not avail any exemptions or incentives. The effective tax rate for these companies is 25.17%, inclusive of surcharge and cess, and they are not required to pay Minimum Alternate Tax.