❓ Which form of entity structure is most suitable for a startup?

The Private Limited Company format is ideal because it can incorporate venture capital funding and issue ESOPs. Banks and other financial institutions like NBFCs prefer granting loans and advances to Pvt. Ltd. companies over other forms such as partnerships and proprietorships.

❓ How can my business become eligible to get benefits under the Startup India Initiative?

• To be eligible for the Startup India Initiative, businesses need to meet the following criteria:
  • Incorporation: Must be registered as a Private Limited Company, Partnership Firm, Limited Liability Partnership (LLP), or One Person Company.
  • Age: Should not be older than 10 years from the date of incorporation.
  • Annual Turnover: Should not exceed INR 100 crore in any financial year since incorporation.
  • Innovation Focus: Should work towards innovation or improvement of existing products, services, and processes, or create new products driven by technology or intellectual property.
  • Recognition by DPIIT: Registration and approval from the Department for Promotion of Industry and Internal Trade (DPIIT) is essential for full benefits like tax exemptions.

  Registered startups can access benefits such as tax exemptions, easier compliance, funding support, and access to resources for scaling and mentorship

❓ What are the benefits under Startup India Initiative?

The scheme provides benefits such as:

• Tax benefits including relaxation in Income Tax for the first three years and exemption on Capital Gain.
• Intellectual Property rights protection with fast-track processing and an 80% rebate on Startup Patent Registration.
• Simplified processes for incorporating businesses and obtaining government registrations.
• Self-certification compliance with no inspection during the first 3 years.
• Mentorship by industry experts and ease in procuring funds.
• Academic partnerships and incubator support in Research & Analysis.
• Funding support through a ‘Fund of Funds’ with a corpus of INR 10,000 crore.

❓ I want to register my business as a Private Limited Company. What is the fastest way to get started?

The Ministry of Corporate Affairs (MCA) has initiated a fast track registration procedure called Simplified Proforma for Incorporating Company Electronically (SPICe). SPICe enables a single form application process of company registration. With the SPICe route, the company incorporation procedure can be completed within 7 working days.

❓ I need to sell my products online. How will you assist me with online payments?

We have partnered with Razorpay payment gateway we will assist you in obtaining Payment gateway

❓ I need to set up a website domain. Can you help me out?

With Godaddy as our domain hosting partners, you will be able to set up your website in no time.

❓ I need help with banking services for my business. How can ProKhata assist me?

As a startup, we understand the banking needs of entrepreneurs. We have collaborated with India’s leading banks to offer comprehensive banking solutions for your business: ICICI Bank:

• Business Networking with BizCircle
• Opportunity to connect with investors at ICICI events
• Customized solutions on current account and digital banking
• Personalized service with dedicated relationship manager
• Special deals and offers on select business services

As a ProKhata customer, our representatives will directly connect you with our partners to avail these services.

❓ What is the government fee applicable for a Plc incorporation?

For Private Limited Company (PLC) incorporation in India, the following government fees typically apply:

• DIN (Director Identification Number) for two directors: ₹1,000
• RUN (Reserve Unique Name) Form: ₹1,000
• Memorandum of Association (MoA): ₹1,000 (for authorized capital up to ₹10 lakh)
• Articles of Association (AoA): ₹1,000 (for authorized capital up to ₹10 lakh)

Please note that additional costs may include Digital Signature Certificates (DSC) and other legal fees depending on the services chosen

❓ What is the stamp duty payable for company incorporation?

The stamp duty for company incorporation in Karnataka varies by the authorized share capital amount and recently updated state regulations. Typically, the fees are as follows:

• Articles of Association (AoA): Rs. 1,000 for authorized capital up to Rs. 10 lakh.
• Memorandum of Association (MoA): Rs. 1,000 for the same capital range.
• Affidavits and notary: Stamp duty on affidavits is often nominal (e.g., Rs. 20), but exact rates depend on the document’s purpose and state-specific requirements

❓ Can an NRI also become a director in a company? And what additional documents will be required to be submitted?

Yes, an NRI or any foreign national can become a director in a private limited company. But such person can be taken as a director only when there is one director who is a Resident of India. Additional documents required:

• Copy of Passport attested by Consulate of Indian Embassy or Foreign Public Notary.
• Copy of Driving License/ Bank Statement or Electricity Bills copy or Any Property Tax Payment Receipt attested by Consulate of Indian Embassy or Foreign Public Notary.

RBI approval is required for foreign capital contribution. Additional charges will be applicable for RBI approval. Our experts will advise you on the applicable charges.

❓ I wanted to start with 4 proposed directors for my company. Will this be covered in the current package?

Under this package, we incorporate a company or LLP with a maximum of 2 directors or designated partners. If the number of directors is more than two, you will need to pay additional charges. Our experts will advise you on the same.

❓ I and my partner are both directors and shareholders in our company. We wish to bring in two additional shareholders as well. Is that covered in the package?

In the current package, we cover up to 2 digital signatures for two directors. For two additional shareholders, you need to secure two additional digital signature certificates. We offer digital signature certificates.

❓ Our company would like to bring in a foreign citizen as a director. Is this covered in your package?

To bring in an additional director, you need to secure a digital signature (DSC). Click here to purchase a digital signature – https://prokhata.com/product/digital-signature-for-foreign-citizens-and-nri/. Only the passport of the foreign director is required. In some countries, a residency certificate will be provided. These need to be submitted for the application. Any incidental charges are not covered in the package.

❓ Our company would like to bring a non-resident Indian as a director in the company. Is this included in the package?

To bring in an additional director, you need to secure two digital signatures (DSC). Click here to purchase a digital signature – https://prokhata.com/product/digital-signature-for-foreign-citizens-and-nri/. If the individual is residing outside India at the time of the application, they need to get the PAN, Aadhaar, current address (in the country of residence), and permanent address attested by the Indian embassy in that country. Any incidental charges are not covered in the package.

❓ My details on my documents have a difference. Can I still incorporate my company using them?

You will need to have exactly the same details on all your documents to incorporate your company.

❓ Why is there a delay in getting our incorporation certificate?

Due to the increasing enthusiasm among too many entrepreneurs who wish to incorporate their companies, the MCA has made stringent rules to approve the company name and issue the certificate of incorporation. Further, due to excessive demand, the PAN and TAN applications are also increasing and thus it is understood that this processing will take time too. So, we could take a range between 20-25 working days to complete the company incorporation process and receive the certificate of incorporation.