What is the Process for DIPP Registration in India?

In India, the Department for Promotion of Industry and Internal Trade (DPIIT), formerly known as DIPP (Department of Industrial Policy and Promotion), plays a crucial role in facilitating and promoting industrial development. One of its key initiatives is the Startup India Registration, which enables startups to benefit from various government schemes, incentives, and tax benefits. Here is a comprehensive guide on how to go about the DIPP registration process in India, focusing on its linkage with DPIIT registration, LLP registration, IEC registration, and Startup India.

1. What is DIPP (DPIIT) Registration?

The DIPP (Department of Industrial Policy and Promotion) registration, now referred to as DPIIT (Department for Promotion of Industry and Internal Trade) registration, is part of the government’s Startup India initiative. It enables startups to avail themselves of several benefits, including tax exemptions, easier compliance, and support in terms of intellectual property rights, among others.

A startup registered under the DPIIT will get the official recognition as a “Startup,” which gives it access to funding, incubators, and government programs aimed at encouraging innovation and entrepreneurship.

2. Eligibility for DPIIT Registration

Before proceeding with the registration, businesses need to meet certain criteria:

• Innovative Product/Service: The startup should be working on an innovative product, service, or solution.
• Age of the Startup: The company should be in its early stage, typically less than 10 years old.
• Annual Turnover: The annual turnover should not exceed ₹100 crore in any of the previous financial years.
• Entity Type: The startup can be a Private Limited Company, Limited Liability Partnership (LLP), or a Registered Partnership Firm.

3. Steps for DPIIT Registration Process

The DPIIT registration process is relatively simple and can be completed online through the Startup India portal:

• Step 1: Create an Account on the Startup India portal.
• Step 2: Fill out the Application Form: Provide details about the startup, including its nature of business, product/service, and its innovative edge. The company should submit a copy of its certificate of incorporation or partnership deed (if applicable) and a self-certification of being a startup.
• Step 3: Get Recognized: After reviewing your application, the DPIIT will provide you with a recognition number. This number is important as it helps the startup avail of various benefits under government schemes, including tax exemptions under section 80-IAC.

4. LLP Registration and DPIIT

To avail the benefits under DPIIT registration, your startup can also be registered as an LLP (Limited Liability Partnership). LLP offers a unique blend of flexibility and legal protection, making it a popular choice among startups. The process of LLP registration involves:

• Choosing a unique name for your LLP.
• Filing the LLP Agreement and other incorporation documents with the Ministry of Corporate Affairs (MCA).
• Obtaining a Digital Signature Certificate (DSC) for partners.

Once registered, the LLP can apply for DPIIT recognition through the Startup India portal.

5. IEC Registration

If your startup is engaged in importing or exporting goods, you will need to obtain an IEC (Import Export Code) from the Directorate General of Foreign Trade (DGFT). This code is essential for engaging in international trade and is linked with your business’s GST and PAN details.

6. Benefits of DPIIT Registration

Once registered under the DPIIT, startups can enjoy a range of benefits:

• Tax Exemptions: Eligible startups can enjoy a 3-year tax holiday in the first seven years of their operation under Section 80-IAC.
• Funding Support: DPIIT recognition opens the doors to various funding options, including the Fund of Funds for Startups (FFS).
• Self-certification for Compliance: Startups are allowed to self-certify compliance with labor and environmental laws for three years.

Conclusion

The DPIIT registration process under the Startup India scheme offers an excellent opportunity for new businesses to thrive. By registering as a Startup, and with optional LLP registration and IEC registration, entrepreneurs can access a wide range of government-backed support systems, ensuring their business remains competitive in a dynamic market environment.