Startup India Scheme is a flagship program by the Government of India, launched in 2016. The goal is to boost the startup ecosystem in India.
Under the Startup India Scheme, the government aims to promote faster growth by reducing barriers. The key focus points for the Startup India is to ease the incorporation process, increase incentives, funding support and develop incubation & accelerator centres. The Startup India scheme insists on design and innovation. The Startup India initiate is believed to change the job-seeking scenario to the job creation scenario.
To support and accelerate startups in India, many programs have been introduced. The government has started with a 19 point action plan, under the Startup India Scheme.
Who is a startup?
A ‘Startup’ under the Startup India Scheme should fulfil the following conditions:
- The incorporation date should be less than 10 years
- Turnover should not be more than INR 100 crore in any financial year
- The funding raised by the startup should be less than INR 25 crore
What are the benefits of Startup India?
The Government of India provides incentives and benefits to registered startups under the Startup India scheme. Advantages available under the scheme are as follows:
- Tax Benefit
- A startup can claim tax benefits for 3 consecutive years, in the first 10 years from Incorporation or registration
- A startup can apply for tax exemption from section 56 or Angel Tax. After getting DPIIT recognition startup.
- Exemption from Capital gains, if a startup invests in funds Specified by the Government of India. After the asset transfer, the investment should be made within 6 months.
- Patent Registration
- Fast-track application, examination and disposal of patents
- After filing a patent an 80% rebate on fees is available to Startups
- Funding:
- A 10,000 crore fund is set up under Startup India. It will give startups better access to fundraising.
- Government Tender
- When applying for tenders by a government entity or PSU, there is a mandate of ‘Prior experience/Turnover’.
Startups in the manufacturing sector are exempt from this requirement of ‘prior experience/ turnover’. It is an advantage for the startups to get public tenders.
- When applying for tenders by a government entity or PSU, there is a mandate of ‘Prior experience/Turnover’.
- Startup India Hub:
- It is a single place where you can contact for all the knowledge and queries for a startup. Startup India Hub will provide access to
- Investors
- Mentors
- Incubators
- Accelerators
- Research & Development institutions
- It is a single place where you can contact for all the knowledge and queries for a startup. Startup India Hub will provide access to
- Easy compliance:
- The compliance required under the scheme is easy and convenient. Startups can use the Startup India mobile app or website for the same.
- The startups under the scheme can self-certify themselves with certain labour and environmental law. Under self-certification, there will be no labour law inspection for 3 years.
- Easy exit:
- A startup can shut down its business in 90 days after they apply for winding up. They can apply for shutting down the business under the IBC (Insolvency and Bankruptcy Code).
FAQs
Any entity having atleast one registered office in India is welcome to register on the hub as location preferences, for the time being are only created for Indian states.
An entity would cease to be a ‘startup’ upon expiry of:
1. Up to 7 years from the date of its incorporation/ registration; however, in the case of Startups in the biotechnology sector, the period shall be up to 10 years from the date of its Incorporation/ registration;
OR
2. If its turnover for any of the financial years has exceeded INR 100 crore.
An entity incorporated as a Private Limited Company, Partnership Firm or a Limited Liability Partnership can register themselves under the startup India scheme. The annual turnover of these business entities should not exceed 100 crores, and they should have been in existence for up to ten years from the date of its incorporation/ registration. Such an entity should be working towards innovation, development or improvement of products or services or processes.
Hey @Sofiyah_Valiante ,
The following listed are the benefits of Udyam Aadhar Registration:
Hope this helps!