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Startup

Our pride is our endless range of service offerings. Every being and every business will find a solution at Mukunda Shiva and Associates.

The Recipe to Success

Over the last 20 years, we've helped several different entities from superstar startups, enormous corporates and countless individuals Our 10,000+ clients have had all sorts of service requirements which we were able to deliver thanks to our team of 80 business professionals. That makes Mukunda Shiva and Associates a robust and accessible business consultation firm which is guaranteed to deliver your every need.

Eligibility as Startup:

  1. Engaged in innovation, development or improvement of products or processes or services or a scalable business model with a high potential of employment generation or wealth creation.
  2. It is incorporated on or after the 1st day of April, 2016 but before the 1st day of April, 2023
  3. The total turnover of its business does not exceed one hundred crore rupees in the previous year relevant to the assessment year
  4. It holds a certificate of eligible business from the Inter-Ministerial Board of Certification as notified in the Official Gazette by the Central Government.
  5. Has not yet completed a period of 10 years from the date of incorporation/registration.
  6. Is a private limited company or registered as a partnership firm or a limited liability partnership.
  7. It is not formed by splitting up or reconstructing a business already in existence.

Restrictions and prohibition on Startup:

  1. Any startup becoming holding/subsidiary of any company after recognition will be derecognized. Any entity formed by Joint Venture will not be recognized.
  2. Shareholding by Indian promoters in the startup should be at least 51%, as per Companies Act, 2013 and SEBI (ICDR) Regulations, 2018.
  3. Incorporating additional entities: Incorporating additional entities having similar address with same production line/services and at least one common director/ designated partner/partner will not be recognized as startup.
  4. Common directorship/partnership: Recognition of an entity having common director/designated partner/ partner with any other entity shall be allowed to the extent permissible under the provisions of the Companies Act, 2013. Related party transaction shall not be allowed except transactions on arm’s length basis.
  5. Regulatory Areas: Entities operating in domains specifically prohibited by law shall not be recognized.
  6. Sole Proprietorship: A sole proprietorship is not eligible to apply for recognition. If a sole proprietorship changes its type of entity into a type permissible for recognition, then the recognition will be granted from date of commencement of business of the sole proprietorship.

Eligibility as Startup:

3 years tax holiday in a block of seven years (80 IAC Exemption)

  1. Any profits and gains derived from eligible business, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction of an amount equal to one hundred per cent of the profits and gains derived from such business for three consecutive assessment years
  2. The assessee, be claimed by him for any three consecutive assessment years out of ten years beginning from the year in which the eligible start-up is incorporated.
  3. Tax exemption to Individual/HUF on investment of long-term capital gain in equity shares of Eligible Startups u/s 54GB. The existing provisions u/s 54GB allow the exemption from tax on long-term capital gains on the sale of a residential property if an individual or HUF sells a residential property and invests the capital gains to subscribe the 50% or more equity shares of the eligible startups, then tax on long-term capital will be exempt provided that such shares are not sold or transferred within 5 years from the date of its acquisition.
  4. Self-Certification Under Employment and Labour Laws: Startups can self-certify under labour laws and environment laws so that their compliance costs are reduced. Self-certification is provided to reduce regulatory burden, thereby allowing them to focus on their core business. Startups are allowed to self-certify their compliances under six labour laws and three environment laws for a period of 3 to 5 years from the date of incorporation.
  5. Easy exit In case of exit – A startup can close its business within 90 days from the date of application of winding up.

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