What are the legal requirements for a startup

695 votes

See it depends on what kind of business are you involved in. Registration procedure for every business is different from one another. However, you will be required to set up a firm if it is included in your business then, you can register our firm along with your partners by forming a partnership deed. Also, kindly provide the details of your startup so that I am able to provide you with full solution.

Advocate Siddhant Sharma LawRato

952 votes

This is long, but the following paragraph is according to the Government Notification.

5. The process of recognition as a ‘startup’ shall be through mobile app/portal of the Department of
Industrial Policy and Promotion. Startups will be required to submit a simple application with any of
following documents:

a) a recommendation (with regard to innovative nature of business), in a format specified by
Department of Industrial Policy and Promotion, from any Incubator established in a postgraduate
college in India; or

b) a letter of support by any incubator which is funded (in relation to the project) from
Government of India or any State Government as part of any specified scheme to promote
innovation; or

c) a recommendation (with regard to innovative nature of business), in a format specified by
Department of Industrial Policy and Promotion, from any Incubator recognized by Government
of India; or

d) a letter of funding of not less than 20 per cent in equity by any Incubation Fund/Angel
Fund/Private Equity Fund/Accelerator/Angel Network duly registered with Securities and
Exchange Board of India that endorses innovative nature of the business. Department of
Industrial Policy and Promotion may include any such fund in a negative list for such reasons
as it may deem fit; or

e) a letter of funding by Government of India or any State Government as part of any specified
scheme to promote innovation; or

f) a patent filed and published in the Journal by the Indian Patent Office in areas affiliated with
the nature of business being promoted.

Department of Industrial Policy and Promotion may, until such mobile app/portal is launched make
alternative arrangement of recognizing a ‘startup’. Once such application with relevant document
is uploaded a real-time recognition number will be issued to the startup. If on subsequent
verification, such recognition is found to be obtained without uploading the document or uploading
any other document or a forged document, the concerned applicant shall be liable to a fine which
shall be fifty per cent of paid up capital of the startup but shall not be less than Rupees 25,000.

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