Startup Registration and how to register in India 2020

A startup is a new and young company founded by one or more entrepreneurs in order to develop a unique product or service and bring it to market. They are usually based on any new invention, and new service or product. Usually, startups are started to address market gaps. In the words of Neil Blumenthal (co-founder of the Warby Parker)

“ A startup is a company working for the solution of a problem where the solution is not obvious and success is not guaranteed”

Although there is no single terms which define startup registration but they are different from traditional business models. When something new and innovative comes in the market than it is defined as a startup. It is most commonly defined when advanced technology is used for the development of any new invention or service. The revenue base of the startups is very limited. The entrepreneurs have to persuade investors to put money into their idea. So the startup’s revenue sources are completely different from traditional business models.

The term startup came into use from the 1990s when the internet and advanced technology made new inventions possible. There is a number of startups that were started then and have become giant businesses today, like Microsoft, Mcdonalds, Facebook, Ford, etc.

Startup business in India-

Startups are also becoming popular in India. In last decade, a number of new startup companies were launched in India. In India Paytm is one example of a startup company that is growing very fast in mobile wallets business and captures a larger % of the online mobile payments market. In order to develop the Indian economy and attract talented entrepreneurs, the Government of India, under the leadership of PM Narendra Modi, has started and promoted the Startup India initiative to recognize and promote startups. The increasing number of Startup companies in India has led to the rise of entrepreneurship.

Above all the startup company must be registered as a legal entity. A start-company can be of following types

• Private limited company registration
• One person company registration
• LLP registration
• Proprietorship
• Section company registration
• India Subsidiary