Startups are trending in India. The government started promoting startup India under the leadership of PM Narendra Modi. Startup India goal is to build a strong ecosystem that can contribute to the growth of startups in India.
To fasten the growth and help the Indian economy, many benefits are provided to entrepreneurs for building their startups. The startups linked through the Startup India initiative are provided various benefits for establishing their own business in India.
Eligibility for Startups
According to the Startup India initiative, the followings points must be covered to be eligible for Startup :
- Registered in India for a maximum of up to 10 years from its date of registration.
- Must be a private limited company or registered as a partnership firm or a limited liability partnership.
- Annual turnover not exceeding Rs. 100 crore from the year of incorporation/registration.
- Their idea must be towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.
Benefits under Startup India Initiative
The process for registration for the startups can be done through the mobile app or a website launched by the Indian government. Anyone willing to register can fill up a simple form on the website and upload the required documents. The entire process is completely online and hassle-free.
Minimal in cost
Under this initiative government will provide lists of facilitators of patents and trademarks. They will offer high-quality intellectual property rights services including fast examination of patents at lower fees.
Easy access to Funds
A 10,000 crore rupees fund is fixed by the government to offer funds to the startups. To provide venture capital the government is providing a guarantee to the lenders to encourage banks and other financial institutions.
Startups will be excluded from income tax for 3 years offered. They get a certification from Inter-Ministerial Board (IMB) for the proof.
Apply for tenders
Startups will also be eligible to apply for government tenders. They are excluded from the “prior experience/turnover” criteria applicable for normal companies replying to government tenders.
R & D facilities
Seven new Research Parks will be set up to offer facilities to startups in the R&D sector.
No time-consuming compliances
Various compliances have been initiated for startups to save time and money. Startups shall be allowed to self-certify compliance via the mobile app with 9 labour and 3 environment laws.
Tax saving for investors
People who are investing their capital gains in venture funds will get exemption from capital gains. This will help startups to attract more investors and grow their annual turnover.
Freedom to choose an investor
The startups will also have an option to choose between the VCs, which provide them with the liberty to choose their investors.
A startup can close its business within 90 days from the date of application winding up.
Meeting with other entrepreneurs
The government initiated to conduct 2 startup meets annually both nationally and internationally to allow the various stakeholders of a startup to meet. This will provide huge networking opportunities and a chance to explore the other markets strategy.
Startups are being highly promoted and supported by the government. The benefits provided by the government for the startups are immense, which encourages and motivated people to start setting up their startups.