Start-Up India Scheme

The Startup India scheme is a government initiative to generate employment and income in India. A significant objective of Startup India is to promote the development and advancement of products or services and increase India’s employment rate and wealth.

What is Startup India?

In India, under the governance of the Prime Minister, Mr Narendra Modi, took the initiative to implement Startup India on the 16th of January, 2016. The scheme was launched to abolish government-imposed economic liberalisation, Land Authorization, Foreign Investment Plans, and Investment Clearances.

The start-up India loan gives new businesses many advantages like help with starting up, getting employment, and making money. In addition, these newly established enterprises in India will benefit from administrative and tax savings, capital gains, tax exemptions, and government investment after fulfilling specific requirements.

Meanings of Start-Up: 

The term “start-up” refers to a company still in its development. They are founded by one to three entrepreneurs who manufacture a product with high market demand. 

Because a start-up is a new firm, it must be less than five years old and have an annual turnover of less than Rs 25 crores to qualify for the start-up India initiative.

Why Did Startup India Get Started?

In India, establishing a company or other commercial entity was difficult. As a result, they compelled the prospectus promoters to move to other countries. Though limitations were reduced with the government’s liberalisation program in 1991, numerous restrictions such as Licence Raj, Land Permit, Foreign Direct investment Plans, and Investment Clearances were implemented by government regulations.

The Startup India program will reduce these restrictions and make it easier to start a business.

Best Features of the Startup India Scheme:

1. This scheme has streamlined the entire process of registering a business.
2. Self-certification will help start-ups cut down on their regulatory costs.
3. The government is likely to provide low-cost legal assistance for expedited patent evaluation.
4. To help the start-up, the government plans to set up a fund with an initial amounting to Rs. 2500 Crore. Over the next 4 years, the government aims to gain a total sum of Rs. 10,000 Crore.
5. Additionally, the government offers a credit guarantee plan.
6. The start-up enjoys a capital gain exemption.
7. It also gives tax benefits to start-ups.
8. It encourages biotechnology entrepreneurship.
9. The public procurement standards are highly flexible for entrepreneurs.
10. They also establish a panel that will provide legal counsel and assistance with issues such as patent application submission.

Action Plan for Start-ups in India:

Startup India is a government-led initiative. The primary purpose of this strategy is to establish a robust ecosystem in the country that fosters innovation and start-ups. The initiative intends to encourage stable economic growth and create massive opportunities for youth and the public and private sectors. The government encourages business owners to be innovative and use technology to grow through this start-up India loan.

This Action Plan aims to spread the Startup Movement faster. Three pillars make up the Action Plan.

• Simplifying and guiding the process
• Financial Assistance and Incentives
• Collaboration between research and industry

Types of Organisations Eligible to Apply For Startup India Registration:

1. Partnership Corporation
2. Limited Liability Partnership (LLP) Corporate entity
3. A Private Limited Company

Eligibility for Startup India Registration:

1. It must be a private limited corporation or a limited liability partnership (LLP).
2. The organisations must be approved by the DIPP (Department of Industrial Policy and Promotion.)
3. It must also have a letter of recommendation.
4. The company must come up with innovative ideas or products.
5. The business should be new or no more than five years old.
6. The company’s annual turnover should not exceed 25 crores.
7. Finally, it should not be the product of the dissolution or restructuring of an existing business.

How to Apply for the Start-up India Scheme Online?

• Go to www.startupindia.gov.in
• Enter the name of your business, its location, and the incorporation date.
• Enter your PAN number, address, zip code, and state.
• Include the authorised representative, directors’, and partners’ information.
• Upload required documentation and self-certification
• Submit the company’s certificate of incorporation and start-up India registration for approval.

The Advantages of Startup India:

1. Financial Benefits:

The government grants an 80% discount on patent costs through start-up India loans. Furthermore, getting a patent and other things like that is faster. Additionally, the government covers the facilitator’s fees for obtaining the patent.

2. Tax Benefits:

There are many tax advantages for start-ups under the Income Tax category. The government exempts them from income tax for three years following incorporation. They can also claim capital gains tax exemption if they invest in certain funds.

3. Registration Benefits:

A registration application is available as part of the Startup India scheme. A single meeting has been scheduled at the Start-up India hub. There is also a single window for questions and solutions.

4. The Government Tenders:

Under this start-up India registration, start-ups receive priority consideration for government contracts. They also do not need prior experience.

5. Great Networking Opportunities:

The term “Networking Opportunities” refers to the possibility of meeting with diverse start-up investors at a specific location and time. The Startup India program also conducts Intellectual Property programs.

Conclusion:

The government expects a good line of action to speed up the Startup India scheme. To accomplish the drive’s objective, the Indian government developed a strategy that addressed all of the specified aspects of the start-up environment.

The Startup India initiative will cover various sectors, including scientific and technological, agriculture, healthcare, and education.