Intellectual Property Rights Registration in India

Jul 2, 2025
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In today’s innovation-led economy, protecting intellectual property is vital. India offers a robust legal framework for IPR registration, helping creators, inventors, and businesses safeguard their ideas. India received 82,811 applications in FY 2022–23, a 24.6% increase over the previous year and a total of 466,580 trademark applications, reflecting growing IP awareness. Supported by initiatives like Startup India and the National IPR Policy, the system ensures legal exclusivity, commercial advantage, and innovation protection.

This guide covers the essentials of IPR registration in India, including types of IP, eligibility, documents, and the registration process.

Table of Contents

What are Intellectual Property Rights?

Intellectual Property Rights (IPR) are legal protections granted to individuals or entities over their original creations of the mind. These include inventions, literary and artistic works, symbols, names, designs, and images used in commerce. The purpose of IPR is to encourage innovation, creativity, and fair competition by rewarding creators for their original work.

IPR find their legal basis in Article 27 of the Universal Declaration of Human Rights (UDHR) and are internationally recognised through treaties such as the Paris Convention for the Protection of Industrial Property and the Berne Convention for the Protection of Literary and Artistic Works, both administered by the World Intellectual Property Organization (WIPO). In India, IPR are protected under various laws, including the Patents Act 1970, Copyright Act 1957, Trade Marks Act 1999, and Designs Act 2000.

Types of Intellectual Property Rights

India recognises several types of Intellectual Property Rights, each serving a specific purpose:

  1. Copyright: Protects original literary, dramatic, musical, and artistic works, as well as cinematograph films and sound recordings. Copyright protection is automatic upon creation and lasts for 60 years after the author's death.
  2. Patents: Grant exclusive rights to inventors for their novel, non-obvious, and industrially applicable inventions. Patents are valid for 20 years from the date of filing.
  3. Trademarks: Distinguish the goods or services of one enterprise from another. Trademarks can be words, phrases, symbols, or designs. Registration is valid for 10 years and can be renewed indefinitely.
  4. Geographical Indications: Identify goods originating from a specific geographical location, possessing qualities or reputation attributable to that origin. Examples include Darjeeling Tea and Basmati Rice. GI registrations are valid for 10 years and are renewable.
  5. Industrial Designs: Protect the ornamental or aesthetic aspects of an article. Design registration is valid for 10 years, extendable by 5 years.
  6. Plant Varieties: Safeguard the rights of plant breeders and farmers under the Protection of Plant Varieties and Farmers' Rights Act, 2001. Registration is valid for 15 years for annuals and 18 years for perennials with provisions for renewal.
  7. Trade Secrets: Protect confidential business information that provides a competitive advantage. Trade secrets are not registered but can be protected through contracts and non-disclosure agreements.

What is the need for Intellectual Property Rights?

IPR registration is crucial for several reasons:

  1. Promotes innovation by providing incentives to creators and inventors
  2. Drives economic growth by encouraging investment in research and development
  3. Protects creators' rights, ensuring they can reap the benefits of their work
  4. Supports ease of doing business by enabling technology transfer through licensing and joint ventures
  5. Fosters creativity and enables informed consumer choices by distinguishing genuine products from counterfeits

IPR Registration Eligibility Criteria in India

To be eligible for IPR registration in India, your intellectual property must meet certain criteria:

  • Copyright: The work must be original and fixed in a tangible medium of expression.
  • Patent: The invention must be novel, non-obvious, and industrially applicable.
  • Trademark: The mark must be distinctive and not confusingly similar to existing marks.
  • Design: The design must be new, original, and not previously disclosed.
  • Geographical Indication: The product must have a specific geographical origin and possess qualities or reputation attributable to that origin.
  • Plant Variety: The variety must be novel, distinct, uniform, and stable, as outlined under the Protection of Plant Varieties and Farmers’ Rights Act, 2001.

Required Documents for IPR Registration in India

The documents required for IPR registration vary depending on the type of intellectual property:

  • Copyright:
    • Application Form IV
    • Copy of the work(literary, artistic, musical, etc.)
    • Identity and address proof of the applicant
    • Power of Attorney (if applicable)
  • Patent:
    • Form 1: Application for grant of patent
    • Form 2: Complete or provisional specification
    • Form 3: Statement and undertaking under Section 8
    • Form 5: Declaration as to inventorship
    • Form 26: Power of Attorney, if applicable
    • Abstract of the invention
    • Drawings, if necessary
  • Trademark:
    • Application Form TM-A
    • Representation of the trademark(logo, word, label, etc.)
    • Affidavit claiming prior use, if applicable
    • Goods/services description
    • Power of Attorney (if applicable)
  • Design:
    • Application Form 1
    • Representation of the design
    • Power of Attorney (if applicable)
    • Priority document
  • Geographical Indication:
    • Form GI-1: Application for registration of a GI
    • Statement of case describing the GI and its uniqueness
    • Proof of origin
    • Map of the geographical area
    • List of authorised users
    • Power of Attorney, if applicable
  • Plant Variety:
    • Application Form PV-1
    • Technical Questionnaire
    • Denomination of the variety
    • Photographs/illustrations
    • Seed/propagating material
    • Power of Attorney (if applicable)

Step-by-Step Procedure for IPR Registration in India

The IPR registration process in India generally involves the following stages:

  1. Filing: The applicant submits the required application form, documents, and fees to the appropriate authority (Copyright Office, Patent Office, Trade Marks Registry, or Geographical Indications Registry).
  2. Examination: The application is examined by the concerned office for compliance with legal requirements and substantive criteria.
  3. Publication: If the application is found to be in order, it is published in the official journal for public viewing and opposition, if any.
  4. Grant: If no objections are raised or the objections are successfully overcome, the IPR is granted, and a registration certificate is issued.

Note: The specific steps may vary slightly depending on the type of IPR, but the overall process follows this general flow.

What is the fee for IPR Registration?

The fees for intellectual property registration in India vary depending on the type of IPR and the nature of the applicant (individual, small entity, or large entity). Here are some indicative fees:

IPR Type Natural Person Small Entity Others
Patent ₹1,600 ₹4,000 ₹8,000
Copyright ₹500 ₹2,000 ₹2,000
Trademark ₹4,500 ₹9,000 ₹9,000
Design ₹1,000 ₹2,000 ₹4,000
Geographical Indication ₹5,000 - -
Plant Variety ₹7,000 - -

Note that these fees are subject to change, and additional fees may apply for certain actions like expedited examination or renewal.

Benefits of IPR Registration in India

Intellectual property registration offers several benefits to creators and businesses:

  • Legal exclusivity: Prevents unauthorised use or copying of your intellectual property
  • Brand protection: Enhances brand reputation and helps differentiate your products/services in the market
  • Monetisation: Enables licensing and commercialisation of your intellectual property
  • Business value: Increases the value of your business and attracts investors
  • International expansion: Facilitates the protection of your intellectual property in other countries through international agreements

Registering your IPR in India secures your research and development investments, fostering innovation and economic growth.

Conclusion

IPR registration is a vital step in protecting your intellectual creations from misuse or infringement. It provides legal rights and recognition, encouraging innovation and creative growth. Each category of IPR—patents, trademarks, designs, copyrights, and GIs—requires specific documentation and follows a structured process. Properly filed IPR ensures exclusive rights and helps in commercialising your ideas effectively. Hence, securing IPR is essential for safeguarding and leveraging your intellectual assets in India.

Frequently Asked Questions:

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Frequently Asked Questions

How to register intellectual property rights?

IPR registration refers to the process of obtaining legal recognition and protection for your intellectual property, such as inventions, designs, trademarks, and copyrights, by filing an application with the designated government authority in India.

What is the fee for IPR registration?

The fees for IRP registration in India vary depending on the type of IPR—such as patents, trademarks, copyrights, designs, GIs, and plant varieties—and the nature of the applicant (individual, small entity, or others). For instance, patent fees range from ₹1,600 to ₹8,000, trademark fees from ₹4,500 to ₹9,000, and copyright registration starts at ₹500. Each IPR type also has a distinct fee structure and documentation requirement.

What are IPR documents?

IPR documents refer to the set of forms, specifications, representations, and supporting evidence required for intellectual property registration. These may include application forms, abstracts, drawings, affidavits, power of attorney, and copies of the work or invention, depending on the type of IPR being registered.

Mukesh Goyal

Mukesh Goyal is a startup enthusiast and problem-solver, currently leading the Rize Company Registration Charter at Razorpay, where he’s helping simplify the way early-stage founders start and scale their businesses. With a deep understanding of the regulatory and operational hurdles that startups face, Mukesh is at the forefront of building founder-first experiences within India’s growing startup ecosystem.

An alumnus of FMS Delhi, Mukesh cracked CAT 2016 with a perfect 100 percentile- a milestone that opened new doors and laid the foundation for a career rooted in impact, scale, and community.

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Related Posts

Offshore Company Registration - Process, Benefits and Requirements

Offshore Company Registration - Process, Benefits and Requirements

In today’s global economy, businesses often look beyond their home countries to expand operations, access new markets, and optimise taxes. Setting up an offshore company is one common way to achieve this.

In simple terms, an offshore company is a business entity registered in a country different from where its owners reside or conduct most of their operations. For example, a U.S. resident might register a company in India to access the Indian market or tap into the country’s tech ecosystem.

Offshore companies operate under the laws of the country where they are registered, not the country where their owners live. Many businesses choose this structure for benefits such as legal advantages, tax efficiency, easier cross-border operations, and access to international markets.

In this blog, we’ll explain offshore company registration, the legal framework in India, the process, compliance requirements, and the key benefits to help you make an informed decision.

Table of Contents

Which Acts Govern Offshore Companies in India?

If you are looking to register an offshore company in India, here are the key laws that will apply:

  • Companies Act, 2013: Governs company incorporation, management, and reporting.
  • Foreign Exchange Management Act (FEMA), 1999:  Governs foreign investment, repatriation of profits, and forex dealings.

When foreign nationals or companies set up operations in India, they must comply with these acts. 

Permissible structures for offshore companies in India include:

  • Joint Ventures (JV) with an Indian partner.
  • Wholly-owned subsidiaries (common in sectors like IT and services).
  • Branch Offices (used by foreign companies to conduct business directly in India).
  • Project Offices (for executing specific projects in India).

Requirements for Registering an Offshore Company

To legally register an offshore company in India, certain legal and structural requirements must be met:

  • Private Limited – 2 shareholders and 2 directors (at least 1 Indian director).
  • Public Limited – 7 shareholders and 3 directors (at least 1 Indian director).
  • LLP – 2 designated partners (at least 1 Indian resident).
  • Authorised capital: No minimum paid-up capital required for a Private Limited Company, but authorised capital must be declared.
  • Local presence: Offshore companies must maintain a registered office in India and appoint a local agent if required (esp. for branch or project offices).

Related Read: Find Out Which Company Type to Register for your Business

Offshore Company Registration Process

Registering an offshore company in India typically involves the following steps:

Step 1: Obtain DSC


DSC (Digital Signature Certificate): Required to digitally sign incorporation documents.

Related Read: How to apply for a Digital Signature Certificate in India

Step 2: Reserve Company Name

File SPICe+ Part A on the Ministry of Corporate Affairs (MCA) portal to reserve the desired company name. Ensure the name complies with the Companies Act, 2013 guidelines and is not identical or too similar to existing trademarks or companies.

Step 3: Prepare Documents

Draft the following key documents:

Have these documents duly signed and notarised (where required).

Step 4: File Incorporation Application

  • Complete SPICe+ Part B on the MCA portal.
  • Upload all prepared documents along with:
    • Proof of registered office address in India.
    • PAN and TAN application forms.
  • Pay the required fees.

Step 5: Verification and Approval

  • The Registrar of Companies (ROC) reviews your application and documents.
  • Upon successful verification, the ROC issues the Certificate of Incorporation (COI), officially registering your offshore company in India.

Compliances by an Offshore Company in India

Once registered, offshore companies in India must follow key compliance requirements:

  • Annual General Meetings (AGMs): Conducted as per the Companies Act.
  • Auditor appointment: Mandatory appointment of a qualified auditor.
  • Financial records: Maintain proper books of accounts and file Annual Returns (MGT-7) and Financial Statements (AOC-4).
  • Tax filings: File annual Income Tax returns under the Income Tax Act.

Mandatory Registers:

  • Register of Directors and Key Managerial Personnel
  • Register of Members (Shareholders)
  • Register of Share Transfers
  • Register of Charges
  • Register of Debenture Holders (if applicable)

Benefits of Registering an Offshore Company in India

India is becoming a popular choice for offshore company registration due to several advantages:

  • Low capital requirements: No mandatory minimum paid-up capital for Pvt Ltd companies.
  • Attractive tax regime: Corporate tax rate of ~30%, with incentives for sectors like IT/ITES.
  • Double Taxation Avoidance Treaties (DTAA): India has DTAAs with 70+ countries, helping avoid double taxation on global income.
  • Skilled workforce: India offers a large pool of English-speaking, technically skilled talent- ideal for tech, services, and product-based companies.
  • Strong infrastructure: Cities like Bengaluru, Hyderabad, Pune, and Gurugram offer world-class tech parks, incubators, and infrastructure.
  • Growing economy: India’s rapidly growing economy offers huge market potential for both B2B and B2C businesses.

Conclusion

India offers a dynamic and supportive environment for offshore company registration. It combines cost-effectiveness, a large pool of skilled talent, and a fast-growing domestic market.

In today’s connected world, businesses are no longer bound by borders. If you’re looking to expand globally, diversify your operations, or tap into India’s thriving economy, setting up an offshore company here can be a smart move. From IT services to manufacturing to eCommerce, India offers countless opportunities across industries.

Frequently Asked Questions

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Private Limited Company
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1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
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Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

One Person Company
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1,499 + Govt. Fee
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  • Freelancers, Small-scale businesses
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  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

What is offshore registration?

Offshore registration refers to the process of incorporating a company in a country other than the one where its primary operations or owners reside. It is often done to benefit from favorable tax laws, business-friendly regulations, or global expansion.

Which country is the easiest to open an offshore company?

Some of the easiest countries to open an offshore company include the British Virgin Islands (BVI), Cayman Islands, Singapore, and the UAE. These jurisdictions offer streamlined incorporation processes, low tax rates, and minimal regulatory hurdles.

What are the benefits of an offshore company?

Offshore companies offer several benefits including tax optimization, asset protection, enhanced privacy, access to international markets, and ease of global business operations.

What is the meaning of offshore company?

An offshore company is a legal business entity established in a foreign jurisdiction, typically to take advantage of local benefits such as tax efficiency, confidentiality, and ease of doing international business.

Sarthak Goyal

Sarthak Goyal is a Chartered Accountant with 10+ years of experience in business process consulting, internal audits, risk management, and Virtual CFO services. He cleared his CA at 21, began his career in a PSU, and went on to establish a successful ₹8 Cr+ e-commerce venture.

He has since advised ₹200–1000 Cr+ companies on streamlining operations, setting up audit frameworks, and financial monitoring. A community builder for finance professionals and an amateur writer, Sarthak blends deep finance expertise with an entrepreneurial spirit and a passion for continuous learning.

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Importance of Registered Office of a Company: Meaning & Key Benefits

Importance of Registered Office of a Company: Meaning & Key Benefits

One of the first legal requirements for setting up a company is declaring its registered office. This isn’t just a formality- it’s the official communication hub for the company, where all statutory notices, correspondence from government authorities, and legal documents are sent. 

The registered office reflectsa business's legal existences and plays a crucial role in compliance under the Companies Act, 2013.

This blog discusses the meaning, requirements, importance, and procedures related to a company’s registered office, including how it applies to LLPs, Private Limited Companies, and OPCs.

Table of Contents

Meaning Of Registered Office Of A Company

The registered office of a company is its principal place of business, serving as its official address for all legal and government-related correspondence. It must be a physical postal address located within the Registrar of Companies (ROC) jurisdiction where the company is registered.

It is not necessarily the same as the place where day-to-day operations are carried out (corporate office or branch office). Instead, it ensures that government authorities and stakeholders know where to contact the company for statutory purposes.

Registered Office Requirement during Company Registration

At the time of incorporation, every company must declare its registered office. For this, certain documents are required:

  • Proof of address (electricity bill, water bill, or property tax receipt, not older than 2 months)
  • No Objection Certificate (NOC) from the landlord (if the property is rented)
  • Rent/lease agreement in case of rented premises, or property ownership documents in case of owned premises

If the company does not have a permanent office at the time of registration, it can declare a temporary address. However, the final registered office must be filed with the ROC using Form INC-22 within 30 days of incorporation.

Importance Of the Registered Office Of A Company

Declaring and maintaining a registered office is a legal mandate under the Companies Act, 2013. Its importance can be summarised as follows:

  • Legal Compliance: A company must have a registered office within 30 days of incorporation.
  • Official Address for Communication: All government notices, summons, and correspondence are sent to this address.
  • Use on Official Documents: The registered office address must be printed on all letterheads, invoices, business correspondence, and official publications.
  • Jurisdictional Relevance: It determines the ROC jurisdiction under which the company falls and where records are maintained.

Without a registered office, a company cannot be considered legally compliant.

Change In The Registered Office Of A Company

Companies may shift their registered office after incorporation. The process depends on the nature of the change:

  1. Change within the same city/town/local limits: Notify the ROC by filing Form INC-22 within 15 days.
  2. Change outside local limits but within the same ROC jurisdiction: Requires passing a special resolution and filing with the ROC.
  3. Change from one ROC jurisdiction to another (state-level change): Needs approval from the Regional Director, shareholder consent via special resolution, and filing of required forms (INC-22 & MGT-7).

In every case, the company must update its address on all official documents.

Registered Office of an LLP

Like companies, Limited Liability Partnerships (LLPs) are also required to declare a registered office during incorporation. This is where all legal and government correspondence is sent. Any change must be filed with the ROC using Form 15.

Register your LLP and enjoy flexibility with limited liability protection.

Registered Office of a Private Limited Company

A Private Limited Company must declare its registered office within 30 days of incorporation and notify the ROC of any change through Form INC-22. It acts as the official point of communication and is used on all business documents.

Set up your Private Limited Company to gain credibility and attract investors.

Registered Office of a One Person Company (OPC)

For an OPC, the registered office requirement is the same as that of other companies. It must be declared during incorporation, and any changes should be reported to the ROC. Since OPCs have single ownership, the registered office is key in establishing legal identity.

Incorporate your OPC to run your business independently with limited liability.

Difference Between A Registered Office And A Corporate Office

Many businesses confuse the registered office with the corporate office, but they serve different purposes:

  • Registered Office:

    • Legal requirement under the Companies Act
    • Official address for receiving government and legal communications
    • Determines the jurisdiction of the ROC
    • Must appear on all statutory documents

  • Corporate Office:

    • Operational headquarters of the company
    • Where executives and employees manage daily business activities
    • Focuses on decision-making, sales, and operations
    • Not a legal mandate under the Companies Act

In simple terms, the registered office gives the company its legal identity, while the corporate office drives its business operations.

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Frequently Asked Questions (FAQs)

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Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

What is the purpose of a registered office for a company?

The registered office serves as the company's official communication address. It is the place where:

  • All statutory notices and government correspondence have been sent.
  • Legal documents are served.
  • Company records are maintained.

It legally establishes the company’s presence and is crucial for compliance under the Companies Act, 2013.

Can a company have multiple registered offices?

No. A company can have only one registered office at a time, which determines its legal jurisdiction.

However, it can have multiple branch offices, corporate offices, or project offices across India or abroad. These do not replace the registered office.

Does the registered office determine the jurisdiction of the Registrar of Companies (ROC)?

Yes. The location of the registered office decides the company’s jurisdiction with respect to the Registrar of Companies (ROC). The ROC handles all filings, records, and legal matters under whose jurisdiction the registered office falls.

Is the process for declaring a registered office the same for a Limited Liability Partnership (LLP)?

The process is similar but not identical. LLPs also need to declare a registered office at incorporation by providing address proof, utility bill, and an NOC from the owner.Any change in the registered office of an LLP must be reported using Form-15 with the Registrar of Companies, unlike companies, which use Form INC-22.

What happens if a company fails to notify the change in registered office address?

Failure to update the ROC about a change in registered office is a non-compliance under the Companies Act. Consequences include:

  • Monetary penalties on the company and its officers.
  • Missing important notices or legal documents can lead to legal disputes or default status.

Sarthak Goyal

Sarthak Goyal is a Chartered Accountant with 10+ years of experience in business process consulting, internal audits, risk management, and Virtual CFO services. He cleared his CA at 21, began his career in a PSU, and went on to establish a successful ₹8 Cr+ e-commerce venture.

He has since advised ₹200–1000 Cr+ companies on streamlining operations, setting up audit frameworks, and financial monitoring. A community builder for finance professionals and an amateur writer, Sarthak blends deep finance expertise with an entrepreneurial spirit and a passion for continuous learning.

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Credit Guarantee Fund for Startups | Razorpay Rize

Credit Guarantee Fund for Startups | Razorpay Rize

To improve the credit delivery system and make credit more accessible to small and medium-sized businesses, Credit Guarantee Scheme (CGS) was launched. It accelerates the access to finance for the underprivileged, making the availability of finance from conventional lenders to new-generation entrepreneurs.

Description Who is it for? Benefits
To improve the credit delivery system and make credit more accessible to small and medium-sized businesses For Micro and Small Enterprises The credit facilities are eligible to be covered both term loans and/or working capital for a collateral-free loan up to a limit of Rs. 200 lakh is available for individual MSE on payment of guarantee fee to the bank by the MSE.

A credit guarantee is provided to banks and financial institutions by CGTMSE (Trust) under this scheme so that they can, in turn, lend collateral-free credit to MSEs.

Application procedure

There are namely four types of Credit Guarantee schemes:

1. Credit Guarantee Scheme for banks

Borrowers avail of the scheme through banks.

2. Credit Guarantee Scheme for NBFCs

Borrowers avail of the scheme through eligible NBFCs.

3. Sub-debt scheme

Credit guarantee coverage for distressed MSMEs.

4. PM Svanidhi

Credit facilities for the street vendors.

Table of Contents

Eligibility

  • New and existing Micro and Small Enterprises engaged in manufacturing, service, or retail activity, excluding Educational Institutions, Agriculture, Self Help Groups (SHGs), Training Institutions, etc.
  • All service sector enterprises under the MSMED Act are eligible for coverage.
  • Must be a “First-generation” entrepreneur.

Application procedure for Startups

  • Go to https://www.cgtmse.in/Home.
  • The homepage will open.
  • Click on the “Register” option seen on the homepage.
  • Enter your details and click on “Get OTP.
  • After typing in the OTP, the registration will be completed.
  • Login” to the page again. You will have to fill in the required information such as GST details, Bank Account details, and ITR.
  • Click on “Submit” to avail the benefits under this scheme.
  • Download the financial report, calculate the guarantee, etc, if needed.

Benefits of the Scheme

  • The guarantee cover available under the scheme is to the extent of 75 percent of the sanctioned amount of the credit facility.
  • Credit or loans in the northeast region, UT of J&K, and UT of Ladakh for credit facilities up to Rs 50 lakh, are covered by an 80 percent guarantee.
  • For micro and small businesses operated or owned by women, as well as SC/ST individuals, the guarantee cover stands at 85%.
  • For up to 5 lakh micro-enterprise loans, the guarantee cover stands at 85%.
  • The credit is without any collateral or third-party guarantees.

The guarantee will commence from the e-date of payment of the guarantee fee. It will run for the agreed term credit tenure in the event of term loans / composite loans and for a period of 5 years in the case of working capital facilities only granted to borrowers or for such period as the Guarantee Trust may specify in this regard.

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Frequently Asked Questions

What types of loans are covered under the Credit Guarantee Fund?

The Credit Guarantee Fund may cover various types of loans, including term loans, working capital loans, equipment financing, and other credit facilities extended by participating lending institutions to eligible borrowers.

How does the Credit Guarantee Fund work?

Under the Credit Guarantee Fund scheme, lending institutions extend loans to eligible borrowers without requiring traditional collateral. Instead, the loans are backed by a guarantee provided by the Credit Guarantee Fund, which covers a certain percentage of the loan amount in case of default.

Are there any fees associated with accessing credit under the Credit Guarantee Fund?

Borrowers may be required to pay certain fees, such as guarantee fees or processing charges, to avail of credit under the Credit Guarantee Fund scheme. The specific fees and charges may vary depending on the terms and conditions of the scheme.

Can borrowers avail of multiple loans under the Credit Guarantee Fund scheme?

Yes, borrowers may be eligible to avail of multiple loans under the Credit Guarantee Fund scheme, subject to the approval of lending institutions and compliance with the fund's guidelines.

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