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“A start-up would now require only a certificate of recognition from the Department of Industrial Policy and Promotion (DIPP) and would not be required to be examined by the inter-ministerial board, as was being done earlier. This is one rapid change that we have brought in,” said Nirmala Sitharaman, Minister of Commerce and Industry in New Delhi at the ‘Start-up India States’ Conference’ in 2016.
This has been done to improve the ease of doing business by entrepreneurs when earlier there was a complex and elaborate process of approaching the inter-ministerial board to procure the IPR benefits. After May 16, 2016, Start-Ups have been made eligible for expedited examination of Patent Applications.
This post particularly discusses the procedure of obtaining a ‘Certificate of Recognition’ from the Department of Industrial Policy and Promotion (DIPP) before and after filing the Application of Patent.
The procedure to be followed varies depending on whether a Start-Up has applied for a Patent (and the application is published) or has not applied yet.
The procedure below is only for applicants who have NOT filed the application for patent.
The Application form is available on https://www.startupindia.gov.in/content/sih/en/registration.html
Click on Startup India Services > Startup Recognition > Application.
- Fill in the required information regarding the following ;
- a. Name of the Entity;
- b. Nature of the Entity – Private Limited Company/Limited Liability Company/Registered Partnership
- c. Incorporation/Registered No.
- d. Date of Incorporation/Registration
- e. Address of Registered Office
- f. Details of an authorized representative
- g. Details of Directors/Partners
- Either of the following supporting documents is required to be filed in the Application for the Certificate.
- a. Letter of Recommendation, in a form specified by the DIPP from an incubator recognized by the Government of India; or
- b. Letter of support by any incubator which is funded, about the project, from Government of India or State Government as a part of a specified scheme to promote innovation; or
A panel of facilitators has been constituted for providing assistance and support in filing applications for Intellectual Property Rights (IPR), wherein, Department of Industrial Policy and Promotion (DIPP) would bear the facilitation cost.
- c. Letter of Recommendation, in a form specified by the DIPP from an incubator established in a post-graduate college in India; or.
- d. Letter of funding from the Government of India or any State Government as a part of specified scheme to promote innovation; or – If the Government of India or State Government has provided funds as a part of any scheme to promote innovation to the applicant, a Letter of Funding by GOI or State Government is admissible as a legit document to be submitted.
- e. Letter of funding of not less than 20 percent in equity by any Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel Network duly registered with Securities Exchange Board of India that endorses innovative nature of the business – If SEBI has funded, not less than 20% in equity by any above-mentioned Funds which endorses the innovative nature of the business of the entity to the applicant, A Letter of Funding by SEBI can be submitted.
- f. Letter of recommendation from Industry association recognized by DEPARTMENT OF INDUSTRY POLICY AND PROMOTION – A Recommendation Letter can be obtained by any Industry Association or Organisation which is recognized by DIPP.
The list of Industries/Organisations which can provide for the letter of Recommendation are available on www.startupindia.gov.in
Click on Information> List of Industry Association/Organisations for Recommendation Letter.
- Incorporation or Registration Certificate- Company/ Partnership Incorporation/LLP/ Registration Certificate is MANDATORY to be submitted.
- A Brief note or a supporting document regarding the innovativeness of the idea of the product or services offered by the entity.
- With respect to tax benefits, note that, if you opt for tax benefits, your application will go to the Inter–Ministerial Board for evaluation, which may take time. If your aim is only to obtain benefits related to IPR, you can refrain from choosing the tax benefits option.
The FORMAT for the above mentioned “Letter of Recommendation, Letter of Support from Incubator, Letter of Funding from SEBI, Recommendation letter from Industry Association/Organisation” is available on https://www.startupindia.gov.in/content/sih/en/recognition-page.html
An application for a certificate is processed within a period of 10-25 working days from the date of Application, if accepted, the certificate is available to be procured.
The points below discuss the procedure for obtaining a Certificate of Recognition for applicants who have filed for a patent and the same is published.
- Against Nature of Recommendation, Select “Patent filed and published in the Journal by the India Patent Office in areas affiliated with the nature of business being promoted”.
- Against “Supporting document based on the nature of recommendation selected above”, upload journal extract of publication of your patent application.
- Upload Incorporation/ Registration Certificate.
- Against “Brief note on the innovativeness of products /services offered by the entity”, upload a document in PDF format that provides details relating to the nature of business of your company and why products /services offered by your company is innovative.
- As mentioned above, with respect to tax benefits, note that, if you opt for tax benefits, your application will go to the Inter–Ministerial Board for evaluation, which may take time. If your aim is only to obtain benefits related to IPR, you can refrain from choosing the tax benefits option.
- Submit the application upon self-certification.
PENALTY FOR FALSE REGISTRATION:
If the application is found to be obtained, without uploading the document or uploading any other document or a forged document, the concerned applicant shall be liable to a fine which shall be fifty percent of the paid-up capital of the startup but shall not be less than Rs. 25,000/- (Rupees Twenty Five Thousand only).
About the Author: Himani Kohli, D.E.S Law College (Fergusson Capmus), Intern at Khurana and Khurana Advocates and IP Attorneys and can be reached at [email protected]