Startup India Scheme: Needs and Benefits

1. Startup India Scheme: Needs and Benefits    Innovate in India-B Santhanam must be included in Make in India and Startup India.    The Government of India launched a flagship initiative called ​"Startup India​" on January 16,               2016, to turn India into a nation of job creators rather than job seekers. The aim is to create a                   robust and inclusive ecosystem for startup innovation and entrepreneurship in India, as well             as to catalyse the startup community. The scheme's primary goal is to stimulate long-term               economic development and job creation. Before we look at the advantages of the programme,           it's important to understand who qualifies and what startup means.    What is a startup?                                                                                      The government issued a notification outlining the Startup India eligibility requirements for           taking advantage of the program's benefits.    ● As a result, the following are the company eligibility criteria:    ○ The ​business ​must be formed as a Private Limited Company (PLC) under the           Indian Companies Act, 2013, a Partnership Firm under the Partnership Act,           1932, or a Limited Liability Partnership (LLP) under the Limited Liability           Partnership Act, 2008.  ● This scheme is open to all Indian businesses that have been in operation for up to ten               years from the date of incorporation or registration.                                                                           

2. In any of the previous years since incorporation or registration, annual turnover should               not have exceeded Rs 100 crores.  A startup cannot be created by severing or reconstructing an existing business entity. A                 company that began by severing organisations would be ineligible.  This programme is for startups that are creating a new product, service, or process.               Conditions that must be met-  The startup must be responsible for driving the creation, implementation, or             commercialization of a new product, process, or service that is based on technology or           intellectual property.  The company should be able to generate a lot of jobs or make a lot of money.              ●             ●               ●             ●                 ●   Benefits of Startup India Scheme    To ​promote the growth of the Indian economy, a host of benefits are provided to startups.               The entity should be eligible and is required to be recognized by the Department for Promotion                   of Industry and Internal Trade(DPIIT) as a startup for availing-    1-Self Certification-  Startups would be able to self-certify that they are in accordance with nine labour and               environmental regulations. Under labour rules, no inspections can be performed for a duration         of three years.    This would ease the regulatory burden on startups while also lowering enforcement costs.    2-Income Tax Exemption​- For three years, a DIPP recognised startup that has been           given an Inter-ministerial board certificate is excluded from paying income tax on profits and             gains.    This will take care of the startup's working capital needs for the first few years.    3-Company winding up is easy​- A startup will leave the market within 90 days of filing             for winding up.    4-Simple process​- Starting a business now has a simple registration process. For           registration, the government has developed a mobile app and a website. The process is           completed after you fill out a form and upload the relevant documents.                                                                                                                                                                     

3. 5-IPR Security and Patent Application for Startups    The government offers high-quality intellectual property rights services, as well as a quick and         low-cost patent review.    ● Resources are available to assist startups in protecting and commercialising their           intellectual property.  ● In comparison to other businesses, startups receive an 80 percent discount on patent           filings and a 50 percent discount on trademark filings.  ● The government will pay the expenses of facilitation, while startups will be responsible             for only the legal fees.    6-Relaxation of Public Procurement Norms​- For submitting to government tenders,         startups are excluded from previous experience and turnover requirements. Departments,           ministries, and public sector undertakings (PSUs) of the Indian government have been given           permission to relax startup regulations.    7-​SIDBI funds​– The government has established a venture capital fund worth 10,000 crore           rupees. SIDBI manages this fund, which is used to support the development of creative               businesses. Banks and financial institutions are also being encouraged by the government to           increase venture capital.    8-Investors: Investors who invest their capital gains in the government-run venture fund           are eligible for capital gains exemption. This is a really appealing wa​y ​to get more investors for startups.    Conclusion-                                                                                                                                                                                                  India is booming with ​powerful startups from Zomato to Ola Cabs. The government of India             provides immense benefits to startups, from tax exemption to funding. The government offers             a host of programs and advantages to boost the startup culture so that entrepreneurs focus on                 their core business and worry less about the regulatory burden.