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Startup Registration and Recognition
There are several registrations and licenses that startups may need to obtain in India to comply with legal requirements and operate their business smoothly. Some of the important registrations and licenses for startups are:
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Business registration : Startups may need to register themselves under the Companies Act, 2013 or the Limited Liability Partnership Act, 2008. They can also register themselves as a partnership firm under the Partnership Act, 1932.
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Goods and Services Tax (GST) registration : Startups with an annual turnover exceeding a certain threshold are required to register for GST, a value-added tax that is levied on goods and services.
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Shops and Establishment Act registration : Startups operating commercial establishments, such as shops, offices, and factories, are required to register under the respective state's Shops and Establishment Act.
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Professional tax registration : Startups employing professionals, such as lawyers and doctors, are required to register for professional tax under the respective state's Professional Tax Act.
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Intellectual Property (IP) registration : Startups should consider obtaining IP protection for their products or services through registrations such as patents, trademarks, and copyrights.
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Startup India registration : The Startup India initiative by the Government of India provides various benefits and incentives to registered startups. Startups can register under this scheme to avail benefits such as tax exemptions, funding, and mentoring.
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DIPP Registration : DIPP (Department for Promotion of Industry and Internal Trade) registration is now known as DPIIT (Department for Promotion of Industry and Internal Trade) registration. It is a registration process for startups in India to avail benefits and incentives under the Startup India initiative.
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80 IAC Registartion : Section 80IAC of the Income Tax Act, 1961 provides tax benefits to eligible startups in India. Under this section, eligible startups can claim a 100% deduction of profits and gains for a period of 3 consecutive years out of 7 years from the year of incorporation.
Startups should consult with a legal or financial expert to understand the specific registrations and licenses required for their business, as well as the compliance requirements associated with each registration.
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