The Prime Minister of India, Shri Narendra Modi had this year in his Independence Day speech announced the “Start-up India” initiative. This initiative aims at fostering entrepreneurship and promoting innovation by creating an ecosystem that is conducive for growth of Start-ups.
A startup is an entity, private, partnership or limited liability partnership (LLP) firm that is headquartered in India, which was opened less than five years ago and have an annual turnover less than Rs25 crore including new startups.
To be eligible for considering as startup, the entity should not be formed by splitting up or reconstruction and its turnover should not have crossed Rs25 crore during its existence
First Sight of Startup India
1. Self-Certification based compliance
The Startup plan 2016 is based on Self-Certification compliance & proposes to remove compliances with labour laws (like payment of gratuity, contract labour, employees provident fund, water and air pollution acts) and no inspection will be conducted by government officials for a period of 3 years, thereby reducing regulatory burden. This is a great step towards making the things simpler and can focus on innovation devoting lesser time to regulatory norms.
2. Startup India Hub
A single point of contact for the entire startup ecosystem. Startup Hub will be setup and will act to guide and support for startups and to enable knowledge exchange through their entire journey. There will be Hand holding facility to solve issues of startups and to advise them. In addition, there will be single window clearance for clearances, approvals, and registrations.
3. Intellectual property right scheme to facilitate patent registration
Providing Panel of facilitators to provide legal support to startups in filing applications for patents, trademarks & designs under relevant acts. Entire fees of facilitators shall be bear by Government for any number of applications that a startup may file. This action would enable entrepreneurs for hassle free startups and will provide confidence of not losing ideas to any other.
5. Rebate on filing of patent applications
80% rebate in fees on filing of patent application for startups to reduce costs in their crucial formative years. Structure like Chamber of commerce to be formed for legal support.
6. Relaxed norms of public procurement for Startups
Startups to get equal platform vis-à-vis the experienced businesses in public procurement. For this, Manufacturing sector shall be exempted from the criteria of prior experience or turnover without any relaxation in quality or technical parameters.
7. Faster exits for startups
Provision for fast-tracking closure of businesses have been included in The Insolvency and Bankruptcy Bill, 2015 to make it easier for startups to exit. Startups with simple debt structures may be wound up with in 90days from making application for winding up on a fast-track basis.
8. Funding support with a Corpus of Rs. 10,000 crores
For development and growth of innovation driven enterprises, Government will set up a fund with an initial corpus of Rs. 2500/- and a total corpus of Rs. 10,000/- crores in next 4 years.
9. Credit guarantee funds of Rs 500 crores
To inspire entrepreneurship through credit to innovators across all the sections of society, credit guarantee mechanism through NCGTC (National Credit Guarantee Trust Company)/SIDBI shall be rolled out with a budgetary corpus of Rs. 500 crores for the next four years.
10. Capital gains tax exemptions
If capital gains are invested in Funds of funds recognised by the government, Capital gains tax exemptions shall be there. And in addition to this, existing capital gain tax exemption for investment in newly formed manufacturing MSMEs by individuals shall be extended to all Startups.
11. Income tax exemption for 3 years for Startups
Startups setup after 01 April 2016 shall be exempted from income tax for a period of 3 years for promoting the growth of startups.
They help you to get Recommendation (with regard to innovation nature of business), in a format specified by Department of Industrial Policy and Promotion, from any incubator established in post-graduate college in India;
They can help you to get Letter of support by any Incubator which is funded (in relation to the project) from Government of India or any State Government as part of any specified scheme to promote innovation;
They are also helping to get recommendation (with regard to innovative nature of business ), in a format specified by Department of Industrial Policy and Promotion, from any Incubator recognized by Government of India;
Startup India Learning Program is a free online Entrepreneurship program by Startup India, a GOI initiative. Invest India in collaboration with UpGrad has developed this program. The aim is to help entrepreneurs get their ideas and ventures to the next level through structured learning. The program covers lessons on key areas of starting up by 40+ top founders of India in an extensive 4-Week Program.