India’s startup ecosystem has seen an exponential rise since the startup culture first took over the country. The country is reported to have been teeming with close to 19,000 technology-enabled startups in the year 2016. Clearly, this number is expected to multiply by manyfold in the coming years. However, most of them fail and shut shop due to operational and financial difficulties. To help address this problem, the Government of India under the leadership of PM Narendra Modi launched the Startup India program on 16 January 2016. The program was launched with a view to promote the growth of startups in India, encourage entrepreneurship and create more jobs, thereby, contributing to the development of the Indian economy.
Incorporating your company is one of the first steps of making your business a recognised legal entity. Not only are the owners protected from personal liability for company debts or obligations, but this also improves the credibility of your company. Earlier, the entire process of incorporation took anywhere between a few weeks to over a month and this has now been reduced to under a day owing to the efforts of the Government of India. The advantages are many and it’s probably high time you as a business owner incorporate your company to avail the benefits.
The MSME industry in India contributes to almost 40% of the gross industrial value. As a result of this, it has an extended support system from the central and state governments these days. In an effort to further simplify the processes within the industry, the Udyog Aadhaar registration was introduced. The Udyog Aadhaar (UA) is nothing but an ID for your business much like the Aadhaar cards we have for ourselves. It’s a 12-digit number that helps the government identify your company and gives you a slew of benefits under the MSMED Act of 2006.