Start-Up India in brief
Prime Minister Narendra Modi Boosts up the Startup India Campaign by providing following incentives for the startups:
1. Meaning of Start up
a. Start Up is an entity incorporated or registered in India less than 5 years ago, with an annual turnover upto Rs. 25 Crores in any preceding financial year.
b. The entity has to work towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
2. Tax Incentives for Start Ups
a. Entities incorporated between April 2016 and March 2019 will be given Income tax holiday for a period of three years. This will encourage young entrepreneurs to begin their journey in business.
b. 10000 Crores fund will be given for these start-ups. These funds will participate in SEBI registered venture funds and will come indirectly.
c. Capital gain tax will also be exempted if they invest in the funds recognized by the government. Main objective is to promote investments by mobilizing capital arising from sale of capital assets.
d. 2500 Cr. Credit Guarantee fund (Rs. 500 Cr. per year for 5 years) will also be given through the channels of Venture Debt from formal banking system.
e. Start Up India Hub will be formed to facilitate single point of contact.
f. Tax rules will be simplified for investments above fair value.
3. RED TAPISM WILL BE DONE AWAY….
a. All the compliances will be self-certified. Compliance costs will be reduced and regulations will be simple for a layman to follow.
b. Mobile App for one day start up. This app will help in formation of an entity within 24 hours of applying. It will be a great move if a company is formed in a day in a simplified way.
4. Instead of complicated 20 number of pages, there will be only one page form for registration that can be easily filled up. App will facilitate interaction with government and regulatory agencies for all business needs and information exchange among various stakeholders.
a. Patents pendency to be brought down to US levels in 18 months. Costs of patent registration will be much lower for start ups. Processing for patents approval will speed up with fee cut of almost 80%. Similarly, trademark pendency will be brought to zero in about a year.
b. No inspection for initial three years. That means start ups will be allowed to self certify through a start up mobile app with 9 labor and environment laws.
c. Norms for public procurement will also be relaxed for start ups.
d. Not only Entry, but Exit too will be easy. Easier Bankruptcy Code to be in place.
Feel free to get in touch for details
Email: nitesh@scinnovation.in more
1. Meaning of Start up
a. Start Up is an entity incorporated or registered in India less than 5 years ago, with an annual turnover upto Rs. 25 Crores in any preceding financial year.
b. The entity has to work towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
2. Tax Incentives for Start Ups
a. Entities incorporated between April 2016 and March 2019 will be given Income tax holiday for a period of three years. This will encourage young entrepreneurs to begin their journey in business.
b. 10000 Crores fund will be given for these start-ups. These funds will participate in SEBI registered venture funds and will come indirectly.
c. Capital gain tax will also be exempted if they invest in the funds recognized by the government. Main objective is to promote investments by mobilizing capital arising from sale of capital assets.
d. 2500 Cr. Credit Guarantee fund (Rs. 500 Cr. per year for 5 years) will also be given through the channels of Venture Debt from formal banking system.
e. Start Up India Hub will be formed to facilitate single point of contact.
f. Tax rules will be simplified for investments above fair value.
3. RED TAPISM WILL BE DONE AWAY….
a. All the compliances will be self-certified. Compliance costs will be reduced and regulations will be simple for a layman to follow.
b. Mobile App for one day start up. This app will help in formation of an entity within 24 hours of applying. It will be a great move if a company is formed in a day in a simplified way.
4. Instead of complicated 20 number of pages, there will be only one page form for registration that can be easily filled up. App will facilitate interaction with government and regulatory agencies for all business needs and information exchange among various stakeholders.
a. Patents pendency to be brought down to US levels in 18 months. Costs of patent registration will be much lower for start ups. Processing for patents approval will speed up with fee cut of almost 80%. Similarly, trademark pendency will be brought to zero in about a year.
b. No inspection for initial three years. That means start ups will be allowed to self certify through a start up mobile app with 9 labor and environment laws.
c. Norms for public procurement will also be relaxed for start ups.
d. Not only Entry, but Exit too will be easy. Easier Bankruptcy Code to be in place.
Feel free to get in touch for details
Email: nitesh@scinnovation.in more
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View all 29 comments Below 29 comments
Until and unless Ministry of MSME and DTICs are not taken into confidence, it will be a FAILURE more
Jan 27
Thanks Nitesh for putting up the facts and figures in a consolidated article but is there any registration process for getting the entity in Start-up program ? more
Jan 27
Sir, if the START UP should be 5 yrs & last yrs TO should be 25 CR, then it contradicts Mr. Modi's speech. 1. START up & 5 yr OLD how can it be 2. TO & experience was not required , as new entrants are always faced with this dilema. I mean a entrepreneur without TO, or 5 yrs cannot INNOVATE ? I think there is some confusion. more
Jan 26
