WHAT IS STARTUP?
Due to subjectivity & complexity involved Startup cannot be clearly defined. But depending on the type of business it is involved into, revenue generation model, uniqueness of the project we can define what Startup is all about.
Startup is a newly established business which is in its early stage with a different/unique product or service. What differentiates it from the regular business is the element of innovation they possess. This Startup either comes up with a new product or redevelops an existing product/service into something better.
STAGES IN A STARTUP LIFECYCLE
|Discovery: Identify a potential/quantifiable product or service for target market. Validation: once the product hits the market & sale process is on.||Efficiency: Design business model in such a way that it increases your customer base. Scale: Pushing the capacity of the business to ultimately increase the growth of business in a sustainable manner.||Maintenance: maximising the benefits of the company even during the tough times like economic slowdown. Sale/renewal: decision to sell the business to some big brand or inculcate huge resources that will help your enterprise to continue.|
With the intent to build a strong business environment in India, to drive sustainable economic growth & generate large scale employment opportunities, Government of India launches “STARTUP INDIA” in 2016.
According to the Ministry of Commerce & Industry statistics;
- India has the second-largest ecosystem in the world.
- Year-on-year growth of 10-12%
- Out of 10,000 Startup registration in India- Approximately 4750 are related to technology & development
- With the launch of “STARTUP INDIA INITIATIVE” in 2016: 1400 new technology & development Startup in 2016 alone.
Therefore, we can say that on average 3-4 technology Startup registration are done each day.
FACTORS CONSIDERED BEFORE GOING FOR A STARTUP REGISTRATION
- Cost of business
- Market demographics
- Market size
- Competitors analysis
- Return on investment (ROI)
PROCEDURE & COST (APPX.) FOR STARTPUP REGISTRATION IN INDIA
|S. NO||PROCEDURE||DEPARTMENT||TIME (Days)||COST (INR) (Approximate)|
|*||Apply for Director Identification Number (DIN)||Ministry of corporate affairs (MCA)||1||100|
|*||Obtain online Digital Signature certificate||Ministry of corporate affairs (MCA)||3||1500|
|*||Reserve your Business name||Registrar of companies (ROC)||2||500|
|*||MOA, AOA, Company stamping documents||State Treasury or Authorised bank||1||1300|
|*||Incorporation certificate||ROC or MCA||5||*Depending on capital|
|*||Obtain Permanent Account Number (PAN)||NSDL or UTIITSL||7||67|
|*||Obtain Tax Account Number (TAN)||Income Tax Department||7||57|
|*||Register under office, shops & establishment act||Municipal office||2||6500|
|*||Register for Provident fund||Employment provident fund organisation||10||N/A|
|*||Register for Medical Insurance||Employment state insurance organisation||9||N/A|
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