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The mission of the government of India’s flagship programme, Startup India, is to foster a culture of entrepreneurship and innovation in India by creating a robust environment that welcomes participation from a diverse range of people. Since the 16th of January, 2016, when the initiative was first introduced, Startup India has introduced a number of programmes with the intention of assisting business owners and changing India into a nation of people who create jobs rather than a nation of people who search for jobs.
What is Startup India Scheme
The “Startup India” project, which aims to foster an atmosphere that is beneficial to the establishment of new businesses in India, was recently made public by the government of India. A number of initiatives geared toward achieving this goal have been kicked off by different ministries within the Indian government. The Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry of the Government of India has issued a description for an organisation that is to be regarded to be a Startup in terms of bringing consistency in the recognised companies. This was done in order to bring about the goal of bringing about conformity in the recognised businesses.
The following characteristics identify an organisation as a startup:
Up to a duration of 10 years from the deadline of inclusion or register, if it has been integrated in India as a private limited (as described in the Companies Act, 2013) or enrolled as a partnership (filed under section 59 of the Partnership Act, 1932) or a limited liability partnership (under Limited Liability Partnership Act, 2008) in India.
The entity has not achieved a revenue of more than one hundred crore Indian rupees in any of the fiscal years that have passed since its establishment or registration.
If an entity is making efforts toward creation, growth, or improving the quality of products, procedures, or operations; if that is a sustainable business strategy with a great potential for employment creation or wealth creation; or if it meets both of these criteria, then it is a viable proposition. It should be noted, however, that an organisation that comes into existence as a result of the division or rebuilding of an existing corporation will not be regarded as a “startup.”
“Registration for Startup India”
If a startup company meets all of the requirements listed below, the Government of India will allow that company to participate in the Startup India Scheme and provide it with the following benefits.
To legally operate, a business entity needs to be registered as either a Private Limited Company, a Limited Liability Partnership Firm (LLP), or a Partnership Firm.
After the date of the business’s incorporation, the existence period that the company must adhere to cannot be more than ten years.
It is required that the company’s yearly turnover not exceed one hundred crores of rupees in any of the financial years since its inception.
It was not appropriate to create the corporation by dismantling and reassembling an enterprise that was already in operation.
The startup company needs to be working toward the creation, growth, or upgrading of products and systems or services, and it needs to have an expandable business strategy with a strong potential for wealth creation and job opportunity.
“Startup India Benefits”
1.Self-audit
Startups can self-certify compliance with 9 Labour Laws & 3 Environment Laws using the Startup mobile app to avoid inspections on business registration, building & constructions employees, workers’ provident funds, insurance, and more.
2. Startup India Hub
By building a digital platform, the government helps the startup ecosystem connect, interact, and obtain finance.
3. Straightforward
A smartphone app and website make startup registration easier. Any company interested in Startup India can complete out the website’s form and upload the required documentation. Completely online.
4.Patents
This approach promotes IPR adoption by startup offices to budding entrepreneurs. This protects the entrepreneur because the desired idea is already registered in a single name.
5. Rs10 billion startup fund
The Life Insurance Corporation of India helps startup India build this corpus. This aids startups and entrepreneurs by providing up to Rs.10,000 crore, based on the startup’s category and growth.
6.Credit Guarantee Trust
The National Credit Guarantee Trust Company has a budget of Rs.500 crore each year for the next four years to issue credit guarantees to entrepreneurs.
7.No CGT
Capital gains tax are excluded if invested in a government-approved fund. This gives a firm an advantage over collecting maximum investment from investors without paying tax owing to value addition.
Conclusion
Entrepreneurs with the goal of introducing innovation to a particular industry’s products or services are the driving force behind the creation of new businesses known as start-ups. Because of their inexperience in the market, start-up companies are susceptible to intense competition and frequently fail before turning into scalable businesses. In order for these kinds of businesses to flourish in the market, they need to be safeguarded and given support. Their expertise as well as intangible assets are to be cultivated through the provision of various incentives, such as an environment that is conducive to their development and resources of monetary value.
