Startups are very popular in India. Looking at the trend our government has started a startup India program.
Our prime ministers Shree Narendra Modi says ‘’I see startups, technology, and innovation as exciting and effective instruments for India’s transformation’’
So to support startup ventures government of India have started a startup India program to encourage entrepreneurs establishing startups. It aims to support and nourish entrepreneurs across the country. Its motive is to promote the growth of startup ventures by providing them with financial aids. This not only encourages innovation but also lead to job creation. Our Prime Minister, Narendra Modi first announced this campaign during his 15 August 2015 address from the Red Fort in New Delhi. It is based on three pillars:
- Simplification and Handholding.
- Funding Support and Incentives.
- Industry-Academia Partnership and Incubation.
Till date 15,472 startups have been recognized under the Startup India Program across 479 districts, covering all 29 States and 6 UTs. Also, 13,176 recognized startups have created 1, 48,897 jobs
Related: 6 mistakes that startup should avoid
Let us see some more benefits-
Easy to get registered
The process of getting registered is simple and online. All you need to do is log in to the official website or download the app. Then fill up the form on startup gov with details of your startup and upload required documents.
Under this program, all startups have been exempted from tax for three years.
The Startup under this is eligible for getting 100% tax rebate on profit for a period of three years. Thus, this helps the startup to meet their working capital requirements in initial years.
To reduce regulatory liabilities, startups are allowed to self-certify compliance with nine labor and environment laws. No inspection is conducted for a period of three years for labor laws.
A fund of 10000 crore rupees is set up by the government of India to provide funds to the startups as venture capital. It Guarantees funds through National Credit Guarantee Trust Company or SIDBI over 4 years
Easy winding up of company
Startups under this program can wind up business within 90 days of making an application for the same. Once they have notified as ‘Fast Track’ they can close in 90 days. As in the case of insolvency and bankruptcy, it ensures an exit window.
Provide L&D program by the upgrade
The government of India has initiative startup India Learning Program which is a free online Entrepreneurship program by Startup India. The aim behind this is to help entrepreneurs get their ideas. They help ventures to reach the next level through structured learning.
It provides legal support and fast-tracking patent examination at a lower cost. The startups enjoy 80% reduction in the cost of filling patent. This applies when a startup applies for a patent, the government will come to its aid.
Liability to choose the investor
Investors play a huge role in startups. The startups under this program can choose their own investors.
Easier public procurement norms
Startup ventures incorporated under this scheme have an exemption on EMD and minimum requirements. You are also listed as a buyer under the scheme.
The aim behind starting this program is also to promote India as a hub of startup and also to encourage Indian entrepreneurs in the country. This will further promote the Indian economy