How Can A Startup Avail The Benefits Under SIPP?

The Scheme for Facilitating Start-ups Intellectual Property Protection (SIPP) endows start-ups with a lot of benefits. To begin with, the SIPP has recognized facilitators who are to assist start-ups in gaining intellectual property protection. The cost of the Facilitators will be borne by the Government. In a notice dated 08.06.2016 the Government issued guidelines to the start-ups with regard to the way in which they can choose a facilitator. For more information on how to choose a facilitator and the benefits of SIPP please refer to our earlier blog post.

The most important requirement to avail the benefit of SIPP is to first gain recognition as a start-up.

How to register as a Startup?

First step

Determine if your entity meets the criteria set out for being recognized as a startup. The following entities can claim recognition as a start-up:

• An entity registered under the Companies Act, 2013.
• An entity registered under Section 59 of the Partnership Act, 1932.
• An entity registered under the Limited Liability Partnership Act, 2002

(Please note that a public limited company does not qualify as a start-up)

Second step

Determine if your entity meets the following requirements-

• Has a turnover of lesser than 25 crores in the last 5 financial years.
• Is working towards innovation, development, deployment, and commercialization of new products, processes or services driven by technology or intellectual property.
• Lastly, a legal entity will be identified as a startup only until 5 years from the date of incorporation.

Third step

Procure any of the following documents:

1. A recommendation in a format specified by DIPP from an incubator established in a post-graduate college in the country; or
2. A letter of support from any central or state government-funded incubator to promote innovation; or
3. A recommendation in a format specified by DIPP (with regard to innovative nature of business) from any incubator recognized by the Central Government; or
4. A letter of funding of not less than 20 percent in equity by any incubation or angel fund/PE fund/accelerator or angel network duly registered with Securities and Exchange Board of India that endorses its innovative nature of business; or
5. A letter of funding by the Central or State government as part of any scheme to promote innovation; or
6. A patent filed and published in the Journal by the Indian Patent Office in areas affiliated with the nature of the business being promoted.

After procuring the required above documents, you can claim benefits under the SIPP Scheme for filing patents, trademarks, designs of your start-up, and you can easily approach Intepat for pro-bono services.

Further, you may also interested to read Intellectual Property Scheme for Startups.

In addition to the SIPP scheme, you may also consider filing an application for start-up recognition here: https://www.startupindia.gov.in/content/sih/en/startup-scheme.html to obtain a certificate from the Inter-Ministerial Board of Certification for Tax benefits.