Startup recognized Company, below is the list of benefits that you can avail:
1. Reduction in filing fees for patents and trademarks.
Typically for a private limited company, the government filing fees for trademark application is Rs. 9000/- for each class. Normally, when a start-up commences business the company would require a minimum of 2-3 trademark applications in different classes. Therefore, if you are a startup recognized you are entitled to a rebate of 80% in the application fees for patent application 50% on the trademark application.
This helps save a lot of money and invest it someplace else.
2. Ability to fundraise through a Convertible Note.
For anyone gone through the process of fundraising, they would understand the process of fundraising would require a bunch of paper works, valuation reports, the opening of a bank account, and many other tedious processes. Wouldn’t it be lovely to fundraise with minimum paperwork.
Well, you can actually do that. A Convertible Note is your answer.
You can learn more about the convertible note by visiting this https://www.lexstart.com/post/convertible-note-the-simpler-form-of-fundraising
3. Exemption from Angel Tax
Expecting to fundraise with a premium, with start-up recognition you get an opportunity to avail exemption from the Angel Tax.
4. Tax Benefit for 3 out of 7years.
If you can convince the authority that you are rarest of the rarest. You might get 100% tax rebate on profit for a period of three years in a block of seven years. This will help you meet their working capital requirements during the initial years of operation.
5. Self Certification
Various compliances have been simplified for startups to save time and money. Startups shall be allowed to self-certify compliance (through the Startup mobile app) with 9 labour and 3 environment laws.
Apart from these, there are multiple other benefits available.
You can learn more about the same by visiting this https://www.startupindia.gov.in/content/sih/en/startup-scheme.html