As part of its Manufacturing Incubation Initiative, the Department for Promotion of Industry and Internal Trade (DPIIT) recently announced a collaboration with HCLSoftware, a leading global provider of software solutions.
By encouraging cooperation between governmental and corporate institutions, especially in the field of manufacturing innovative products, this effort seeks to propel India’s startup manufacturing ecosystem. At New Delhi’s Vanijya Bhawan, the announcement was made.
Supporting New Business Ideas Through Startup India
The partnership between DPIIT and HCLSoftware is a part of the Startup India initiative, which seeks to provide a setting in which industry participants are essential to the development of new manufacturing enterprises. With more than 80 MoUs inked so far with different industry stakeholders, DPIIT has laid the groundwork for startups to receive vital industry support.
Participating startups will gain access to HCLSoftware’s HCL Sync program, which will give them exposure to the worldwide market and a chance to market their goods abroad.
In Keeping With the Goal of the Indian Government
The collaboration supports the Indian government’s objective of establishing the nation as a significant centre of production. The three primary goals of this initiative are to: (1) support the growth of Indian intellectual property by assisting startups in developing distinctive, India-specific products and solutions; (2) enhance product quality by giving startups the resources and know-how required to satisfy international standards; and (3) establish a robust manufacturing ecosystem by linking startups with suppliers to form a full manufacturing value chain.
Sanjiv Singh, the joint secretary of DPIIT, underlined the value of this collaboration in creating a sustainable manufacturing ecosystem and how HCLSoftware’s experience aligns with DPIIT’s mission. According to Singh, this partnership would foster Indian innovation and give regional companies a better international presence.
Through programmes like Startup India, he reaffirmed DPIIT’s dedication to advancing the manufacturing environment and making India a significant player on the world arena.
The collaboration with HCLSoftware is to boost Indian businesses by giving them access to cutting-edge digital technology and international markets, said Dr. Sumeet K. Jarangal, Director of Startup India. This funding will help the industry flourish and allow manufacturing companies to achieve success in design, development, and marketing, Dr. Jarangal added.
According to HCLSoftware Chief Product Officer Kalyan Kumar, this collaboration marks a turning point in India’s industrial history. He reaffirmed HCLSoftware’s dedication to giving startups the fundamental resources and assistance they require, from design and development to marketing, thereby making a substantial contribution to India’s goal of becoming a major player in the world of manufacturing.
The Department for Promotion of Industry and Internal Trade (DPIIT) and Johnson Controls-Hitachi Air Conditioning India Ltd. have inked a Memorandum of Understanding (MoU) to build an incubator to assist businesses in Gujarat that are focused on manufacturing. In terms of Johnson Controls-Hitachi Air Conditioning India’s dedication to fostering innovation and bolstering the nation’s manufacturing environment, this is an important turning point.
The purpose of this Startup Incubator is to support technical innovation, sustainability, and energy efficiency by offering a strong platform to firms that are concentrated on particular manufacturing sectors. Under the direction of Sanjay Sudhakaran, Managing Director, Johnson Controls-Hitachi Air Conditioning India Limited, India & South Asia Region, and Sumeet Jarangal, Director, DPIIT, Ministry of Commerce and Industry, the Memorandum of Understanding was formalised. The joint secretary of the DPIIT, Sanjiv, was also present during the signing-off ceremony.
According to Director of DPIIT, Ministry of Commerce and Industry Sumeet Jarangal, India is moving closer to a Viksit Bharat as a result of the Prime Minister’s “design in India, design for the world” philosophy. With several programmes like the Make in India and Production-Linked Incentive Scheme, he continued, the Indian government is dedicated to growing the manufacturing sector. He underlined that developing an ecosystem of startups and an innovation pipeline are critical components of strengthening India’s manufacturing sector.
He expressed optimism that the collaboration with Johnson Controls-Hitachi Air Conditioning India Ltd. will give the nation’s youthful innovators and entrepreneurs the much-needed support and direction.
Providing Mentorship and Guidance
The manufacturing entrepreneurs will receive mentorship and coaching on a range of crucial topics, from concept-to-prototype development, project viability evaluation, and go-to-market strategies, from the Johnson Controls-Hitachi Air Conditioning India Limited incubator. In order to enable the commercialisation of unique items, the organisation will also assist clients in managing future financial demands in addition to other essential services like legal and intellectual property filing.
The Government of India and DPIIT deserve praise for their innovative idea and for offering this special platform that links entrepreneurs with the industry, opined Sanjay Sudhakaran, Managing Director of Johnson Controls-Hitachi Air Conditioning India Limited in the India & South Asia Region. He stated that it’s time for India to achieve a similar level of success in the manufacturing sector, having already demonstrated its inventiveness and entrepreneurial skill in the IT sector with many unicorns. He added that Johnson Controls-Hitachi Air Conditioning India Limited has made significant investments in India to build top-notch R&D and production capabilities.
The Gujarat Connection
The Johnson Controls-Hitachi Air Conditioning India Limited is supported by Japanese innovation, technology, and industry-leading experience. He underlined that the Global Development Centre and the production site in Kadi, Gujarat—one of the biggest air conditioner manufacturing facilities in India—are dedicated to providing Indian consumers with cutting-edge, high-end, and feature-rich air conditioning products.
The company is thrilled to work with DPIIT to establish a cutting-edge incubator at its Kadi, Gujarat, location, according to Sanjay Sudhakaran. This strategic partnership between Johnson Controls-Hitachi Air Conditioning India Ltd. and DPIIT demonstrates the company’s commitment to innovation in the manufacturing sector and is in line with the Indian government’s goal of promoting industrial growth and technical advancement. Manufacturing-focused businesses would receive the critical support and mentoring needed to realise their ideas through this incubator.
The Department for Promotion of Industry and Internal Trade (DPIIT), which is part of the Ministry of Commerce and Industry, is planning to establish a revolutionary digital platform to enhance India’s startup ecosystem. The Bharat Startup Knowledge Access Registry (BHASKAR) initiative is a platform that is designed to centralize, streamline, and enhance collaboration among key stakeholders within the entrepreneurial ecosystem. These stakeholders include startups, investors, mentors, service providers, and government bodies. The BHASKAR initiative is part of the Startup India program.
The Government of India has a mission to convert India into a global leader in innovation and entrepreneurship. This effort matches that ambition, and it reinforces the country’s commitment to the startup movement.
Calling this initiative a master stroke, Shreya Sharma, Founder, Rest The Case stated, “The launch of BHASKAR is a very innovative step to fuel the Startup Ecosystem further. As of now, India globally ranks as the 3rd largest ecosystem for startups. The sector has seen significant growth since COVID-19, and the wind hasn’t dropped yet!”
“India is home to almost 100+ unicorns, which in itself is proof of the rising popularity of Startups! However, red-tapism remains a challenge, and along with that, the easy-to-business also needs improvement. With the launch of BHASKAR, there is a chance for entrepreneurs to find easy guidance on a single platform. They will no longer have to go through the painstaking process of ‘trying to find the right thing’. The launch of such a platform, backed by the Government, is a promise that I feel all startups and budding entrepreneurs can look up to for growth and innovation” she added.
Similar thoughts were shared by Tanay Sharma, COO & Co- Founder CITTA, “I see the launch of the BHASKAR platform by DPIIT as a game-changer for the Indian startup ecosystem, especially in B2C sectors like ours. The beauty and wellness industry, particularly in baby care, requires constant innovation, research, and consumer-centric solutions. BHASKAR, with its focus on fostering collaboration, access to mentorship, and streamlined processes for startups, aligns perfectly with our growth objectives.”
“In the long term, BHASKAR is poised to empower startups by providing access to critical resources, mentorship, and funding, enabling us to scale faster and more efficiently. We are excited about the opportunities this platform creates, allowing us to grow while staying true to our core values of delivering safe, pure, and trusted solutions to our consumers,” he opined further.
Boosting Creativity with a Centralised Hub
India has swiftly become one of the most dynamic startup centres in the world. It is home to more than 1,46,000 companies that have been recognised by the DPIIT institution. Through the provision of an all-encompassing, one-stop digital platform that addresses the issues that are encountered by both investors and entrepreneurs, BHASKAR intends to capitalise on this potential. Through its role as a centralised register, BHASKAR will make it possible to gain unhindered access to a vast assortment of resources, tools, and information that will assist in fostering the entrepreneurial journey from the stage of ideation to the stage of execution.
Within the context of the startup ecosystem, BHASKAR is intended to cultivate an atmosphere that is conducive to the development of growth, networking, and collaboration. The platform will make it easier for stakeholders to connect with one another, improve search ability, and make it possible to uncover relevant opportunities and collaborations in a more efficient manner. This will be accomplished by offering personalised BHASKAR IDs to participants.
Product Highlights of BHASKAR
The creation of the largest digital register in the world for stakeholders within the startup ecosystem is the primary objective of the BHASKAR project. Several major elements will be offered by the platform in order to accomplish this goal.
The BHASKAR platform would facilitate smooth engagement between entrepreneurs, investors, mentors, and other stakeholders, hence facilitating networking and collaboration. This will allow for seamless interaction across different industries.
By unifying resources, the platform will give entrepreneurs with quick access to crucial tools and expertise, hence enabling faster decision-making and more efficient scaling. This will be accomplished by providing centralised access to resources.
The process of creating personalised identification will involve assigning a one-of-a-kind BHASKAR ID to each and every stakeholder. This will ensure that interactions and experiences throughout the platform are personalised and suited to the individual.
Users are able to readily identify relevant resources, collaborators, and opportunities by utilising strong search options, which ensures that decisions and actions are made more quickly.
BHASKAR will act as a vehicle for boosting India’s global reputation as a powerhouse for innovation, thereby making cross-border partnerships more accessible to both investors and startups. This will further India’s efforts to support its global brand.
Promoting the Growth of India’s Startup Community
In the continued efforts of the government to encourage innovation, business ownership, and the creation of new jobs, the introduction of BHASKAR represents a significant step forward. In order to facilitate collaboration, the sharing of ideas, and the acceleration of growth, it will function as a central hub where government organisations, investors, service providers, and startups can all come together.
Through the facilitation of easy access to knowledge and resources, BHASKAR will assist in unlocking the full potential of India’s startup ecosystem, hence boosting the country’s rise as a global leader in the field of entrepreneurship. The platform will play a crucial role in the development of an economy that is more economically robust, inclusive, and innovation-driven, thereby setting the groundwork for a successful future. The Government of India extends an invitation to all relevant parties to participate in this endeavour that would bring about transformation.
With the increased count of startups in India, the Government has put forward a flagship program to empower the startups, which is known as Startup India Scheme, which launched in 2016. As a developing nation, it’s crucial to expand the economy whose best possible method is to fund startups.
Moreover, it benefits the employment rate with innovation in products and services. The government of India has introduced several beneficiary programs for startups, among which this scheme gives DPIIT recognition to the startups. Here arises a question, what exactly is DPIIT?
Basically, DPIIT stands for the Department for Promotion of Industry and Internal Trade. Those startups which get recognition under DPIIT gain many benefits, such as access to a host of tax benefits, IPR fast-tracking, easier compliance, and many more.
The main objective of this Startup India initiative is to reduce the regulatory burden on the startups and to help them expand their core business with low-cost compliance. DPIIT works as the monitoring agency and the Small Industries Development Bank of India (Sidbi), the principal operating agency for funding startups.
This scheme has indeed helped the nation to increase its employment rate. According to the report of March 2020 given by the Commerce and Industry Minister, Goyal Goyal, states that a total of 3,37,335 employment (sic) has been reported by 27,137 DPIIT-recognized startups.
This statistic clearly shows that the DPIIT scheme has benefited the nation. Now, let’s move to the main content of this article which is how to gain the DPIIT Certificate of Recognition for Startups. Let’s begin!
This Startup India Initiative is mainly created to reduce the regulatory burden on startups. Therefore, it comes with several benefits through which the Government of India supports the current entrepreneurial ecosystem of the country. These benefits are:
Exemption of Income Tax Act, 1961 under,
Section 56(2)(vii)(b): This section talks about the tax that imposes on those companies which receive consideration for share issues exceeding fair market value. Now, the DPIIT registration helps startups to get exemptions under this section. The utmost benefit of this exemption is seen at the stage of the angle/VC round.
Section 80-IAC: Under this section, DPIIT-registered startups are benefited by muting the income tax payment for three consecutive years out of the first ten years of the company’s incorporation date.
Section 54(GB): This section discusses the tax imposed on long-term capital profit received on the sale of any residential property. And if the government capital profit is invested in the DPIIT registered startup, then the startup gains exemption from this tax payment.
Self-certification under labor law and environmental laws
Typically, all private companies are bound by labor and environmental laws for conducting inspections of the company’s establishment, safety norms, maintenance, and beneficial employee norms.
However, those startups registered under DPIIT can self-certify for five years (counting from the incorporation date) themselves under six labor and three environmental laws.
The exemption of six labor laws are:
The Building and Other Construction Workers (Regulation and Employment and Conditions of Service Act, 1996)
The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1996
The Payment of Gratuity Act, 1972
The Contract Labour (Regulation and Abolition) Act, 1970
The Employees Provident Funds and Miscellaneous Act, 1952
The Employees State Insurance Act, 1948
The Exemption of three environmental laws are:
The Water (Prevention & Control of Pollution) Act, 1974
The Water (Prevention & Control of Pollution) Cess (Amendment) Act, 2003
The Air (Prevention & Control of Pollution) Act, 1981
Intellectual Property Registration
The cost of a trademark registry in India for a trademark in one class is around Rs 9,000. But for DPIIT registered startups, they cost nearly half. The same goes for patent applications as well.
Public Procurement Norms Relaxation
Those within the industry know what Public Procurement refers to. It’s the process through which state-owned businesses and the government purchase goods and services from the Private sector.
These contracts are usually marked with high eligibility requirements, but for the DPIIT-registered startups, the contract offer is relatively low.
Eligibility Criteria
Eligibility Criteria
Of course, for DPIIT registration, there are some eligibility criteria. Startups fulfilling the criteria will only get the approval and the one that does not fall perfectly under its eligibility criteria will not receive any exemption. The eligibility criteria are shared below.
Company Age
Startups whose existence and operational periods do not exceed ten years, counting from their incorporation date, can apply.
Annual Turnover
Startups with an annual turnover of Rs. One hundred crores for any financial year can apply.
Company Type
Startups that are incorporated as Private Limited companies or registered partnership firms, or limited liability partnerships can apply.
Innovative & Scalable
Startups that work towards product or service improvement and development along with a scalable business model of high potential can apply.
Original entity
Startups with original entities not reconstructed from a pre-existing business can apply.
Startups must submit a list of essential documents for registration under the DPIIT scheme. These documents are:
The Incorporation or Registration of entity Certificate
On receiving funding, Startups need to submit Proof of Funding (a support letter from the state or central government authorities or duly recognized incubator, and the angel funds or incubation fund needs to be 20% or above) to receive the DPIIT certificate.
Documents of award or any recognition received by the company.
Brief description of the nature of the business, including details of how the company is working towards innovation, scalability in terms of employment count, and product or service development.
Document of Patent (published in Patent journals by the company).
And if the ministry found any of the documents mentioned above forged, the applicant is liable for the penalty of 50% of the company’s paid-up capital and Rs. 25000.
Applicable Fees for DPIIT Registration
There are no application fees for the startups to pay for registering with the Ministry of Commerce and Industry to receive the DPIIT Recognition certificate for the startup.
Steps of DPIIT Registration
Business Incorporation
The first and foremost step for DPIIT Registration is to incorporate your business as a limited liability partnership or private limited firm.
Register on Startup India Portal
Startup India Registration Form
You need to register your startup on the official Startup India Portal. Fill out the details, like the contact info of your startup, along with the name. After successfully registering, you will get the login credentials on your provided email address.
Startup India Portal Login
As you have the login credentials, log in to the Startup India Portal. There you will receive an application that must be filled out and submitted. Then only your startup will be registered.
DIPP Recognition and Registration
After submitting the startup registration form application, you will receive a form for DIPP recognition. Please fill out the form and select the tax exemption that you need, and submit the form by attaching the required documents with it.
Certification of Recognition
A Sample Certificate of Recognition
After submitting the application for DIPP recognition to DPIIT, which shall issue the Certification of Recognition to your startup.
The DPIIT certificate is an essential document for startups to gain several benefits from the government. To avail of the certificate, one needs to register their startup companies under the Department of Promotion of Industry and Internal Trade under the sub-category of the Startup India initiative.
The complete guide for the registration as well as the benefits of the DPIIT certificate, eligibility criteria, documents required, etc is shared above.
FAQs
How do I get DPIIT recognition for a startup?
To get DPIIT recognition for a startup, one needs to log in to the page and look for the option of getting DIPP Certified to select register here under the category of Recognition and Tax Exemption.
After clicking on the register here, one needs to fill out the form by submitting all the necessary information and documents required. After submitting, the form will then be processed and if found satisfactory, the startup will get a recognition certificate.
What are the documents required for startup India Registration?
Some of the essential documents required for startup registration are trademarks, articles of association or incorporation, a non-disclosure agreement, intellectual property assignment agreements, a founders agreement, terms and conditions, etc.
Who is eligible for DPIIT?
The basic eligibility criteria for any startup to be registered as DPIIT is to have an annual turnover of about Rs. 100 crores for any fiscal year from its federation.
Is DPIIT registration mandatory?
Startup India Registration with DPIIT is mandatory for startups to get the benefits from the recognition certificate like tax exemption, reduced compliances, etc.
Bhoraniya Huda Hifzur Rehman
