STARTUP INDIA - WHAT IS IT?
STARTUP INDIA is program initiated by Indian government. In 2015, it was bought into action. Surprisingly, the key highlight of this program is that it is the first time in India that startups are being recognized. Also, this program is introduced to bring INVESTORS, INCUBATORS, STAKEHOLDERS and STARTUPS at same-platform in a highly dynamic environment. There they can interact, share knowledge and form successful partnerships.
WHAT IS A STARTUP ACCORDING TO THIS PROGRAM?
Under this program, the definition of startup business has been fixed. Thus, the government can focus only on seriously working businesses. And which may also promote national issues such as employment, environmental, etc.
therefore, the key points of eligibility to this program are:-
1. In this program, the only companies that can be promoted are Corporation and LLC (limited liable company). Henceforth the business entities which will not be promoted are Sole Proprietorship and Partnership.
NOTE:- Under the Startup India initiative, One Person Companies (OPC) are eligible to avail benefits.
2. For more than 10 years, the firm or company or LLP should not be incorporated or registered. Also, if the date of registration of the company has exceeded more than 10 years then the startup will not be promoted under this program.
3. From the date of registration of the startup, the annual turnover shouldn’t have exceeded 100 crores INR.
4. By splitting up or by reconstructing a business, already in existence, the business entity shouldn’t be formed.
5. The product or service for which the entity is working should be innovative, leaning towards the development or improvement of products or services or processes.
NOTE: If your product or service is not innovative then it must ensure its large scalability with high potential of employment generation or wealth creation.
BENEFITS YOU GET UNDER STARTUP INDIA PROGRAM
You get numerous benefits being a startup, once register under this program & get register under DPIIT (Department for Promotion of Industry and Internal Trade).
NOTE : To get benefits through this program register yourself at Startup India website. And then apply for DPIIT recognition from the same.
To register yourself visit Startup India’s Official website :
Below listed are some of the major benefits you get through this program after you have completed the registration process.
1. Self certification :
The first benefit is that you get to self-certify yourself for 9 labor laws and Environment laws.
2. No inspection :
After self-certifying yourself for 9 labor laws, labor inspectors can not visit for a period of 3 years until/unless a serious complaint seems to be filed against the business or company.
3. Tax exemption up-to 3 years :
Yes, you read it right. For up-to 3 years, Income tax will be levied off. To avail, the inter-ministerial board by the government should approve the claim.
NOTE:-The companies and Startups registered after 1st April 2016 can apply for same.
4. Major refunds :
If you want the product to get patent, then you will get 80% rebate in the Patent Application fee. And if also want to get Trademark registered then you get 50% for the same under this program.
5. Public Procurement Policy :
Public procurement refers to the process by which governments and state-owned enterprises purchase goods and services from the private sector. So, startups are free to fill tenders rolled by PSU’s and government.
NOTE: To get the above-mentioned benefit, after registering at Startup India, register the Startup business or company at GeM (Government e-Marketplace) Portal.
6. MENTORS :
Along with Free online courses, Partnered service, Trustworthy Market research reports, Ready-made templates you get to receive guidance from experienced and Professional Mentors from Indian Business Landscape.
7. FUNDS OF FUNDS :
Government has created funds of funds worth 10K crore (10,000 crore INR) in which the Venture capitalists will invest in your industry or Startup.
If you still have any doubts or queries, feel free to write them in the comment section.