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The Government of India has launched the Startup India Scheme in order to generate jobs and income. Startup India’s mission is to promote product and service development and innovation while also increasing jobs in India. Work simplification, financial assistance, government tenders, and networking possibilities are all advantages of the Startup India Scheme. Prime Minister Narendra Modi announced the beginning of Startup India on January 16, 2016. Let’s take a closer look at the Startup India programme and its benefits.
A startup is defined as a company based in India that was founded less than ten years ago and has an annual revenue of less than Rs. 100 crore (US$13 million).
This initiative’s action plan is divided into three sections:
1.Hand Holding and simplification
2.Support and Incentives for Funding
3.Incubation and collaboration between industry and academia.
This effort makes work easier for newcomers in order to motivate them. This includes the following government actions:
To begin, the government has established Startup India hubs where all of the necessary paperwork for formation, registration, and grievance resolution may be completed.
Second, the government has created an application and an online gateway to make registration easier from anywhere and at any time.
Finally, patent acquisition and registration are now rather quick for startups.
Financial Assistance
The government offers a variety of financial incentives to startups in order to encourage them to succeed. The government has taken the following steps:
The government has set aside Rs.10,000 crores for a four-year fund (Rs.2500 crore each year). The government invests in several businesses from this fund.
Special funds are available, and investing in them entitles you to a capital gain exemption from income tax.
For the first three years after formation, startups are free from paying income taxes.
As part of the “Make in India” strategy, the government plans to conduct a national Startup fest once a year to bring together all stakeholders in the startup ecosystem on one platform.
The Atal Innovation Mission has been launched. AIM – To promote entrepreneurship through self-employment and talent utilisation (SETU), in which inventors are encouraged and guided to become successful business owners. It also serves as a place for people to come up with new ideas.
PPP has set up an incubator. To ensure competent management of government-sponsored or funded incubators, the government will develop a policy and framework for public-private partnerships to establish incubators around the country.
-Benefits of Startup India Scheme
Financial Advantages
The majority of the startups are founded on patents. It signifies they create or supply one-of-a-kind products or services. They must pay a significant amount of money to register their patents, which is known as the Patent Cost.
The government offers an 80% discount on patent charges via this programme. Furthermore, the patent registration and related processes are expedited for them. In addition, the government pays the facilitator’s fees for obtaining the patent.
Tenders from the government
Because of the big payouts and large projects, everyone wants to get their hands on government tenders. However, obtaining government tenders is not straightforward.
Startups are given precedence in government tenders under this programme. They also don’t have to have any prior experience.
Benefits from Income Tax
Under the Income Tax section, startups get a lot of help. After the incorporation year, the government exempts them from paying income tax for the next three years.
However, they will only be able to use it after receiving a certificate from the Inter-Ministerial Board. They can also claim a capital gains tax exemption if they invest in specific funds.
Huge Networking Prospects
The ability to interact with diverse startup stakeholders at a specific location and time is referred to as networking opportunities. The government facilitates this by hosting two startup festivals each year (both at domestic as well as international levels).
Advantages of Registration
Everyone assumes that forming and registering a business is significantly more difficult than actually running one. It’s due to the lengthy registration process.
A registration application is available under the Startup India scheme. At the Startup India hub, a single meeting has been scheduled. There is also a single window for them to ask questions and solve problems.
Eligibility Criteria for Startup India Scheme
When an entity meets the following criteria, it is entitled to apply:
In India, it is established as a private limited company, partnership firm, or limited liability partnership.
It has a history of fewer than ten years, i.e. less than ten years have passed since its incorporation/registration.
Since incorporation/registration, the annual turnover has been less than INR 100 crores for all financial years.
Conclusion
The Startup India Scheme was launched by the Indian government in 2016. The development of companies, the creation of jobs, and the creation of money are the key goals of Startup India. Startup India has launched a number of initiatives aimed at fostering a thriving startup environment and changing India into a land of job creators rather than job seekers. The Department of Industrial Policy and Promotion is in charge of these programmes (DPIIT).
