Start up india scheme has been launched by Modi government to encourage entrepreneurs. In this article, You can know about three important points about the scheme. Objective of scheme, eligibility of scheme and Benefits of scheme.
Start up India : New Initiative by Modi Government
Objective of start up India:
We are living in society where secure job is everything. People like safety and job is the option. But opposite to it, many person has entrepreneur KIDA. They want to do something different and build their businesses. Start up India is mean to help new start ups and entrepreneurs.
Who is eligible as start up ?
- Private limited company, LLP , Partnership firm
- The start up should not be older than 5 years
- Turnover should be less than 25 Crores
- Start up should develop innovative product which add value to life of customer.
- It has certificate from DIPP.
All the above conditions should be mandatory be satisfied. From following condition, any 1 should be satisfied.
- Has patent granted for business.
- Has recommended letter from incubator from post graduate Indian collage.
- Has validation letter from incubator funded by government of India.
- Has validation letter from incubator recognized by government of India
- Funded by incubation fund/ angel fund/ PE fund/ Angel network.
So if your business fulfill above 5 + 1 conditions , you are eligible for Start up India scheme.
Benefits of start up India:
- Self certification: Getting documents certified for various laws is big headache for anyone. There is relaxation given to start up in this matter and self certification is valid for PF, gratuity, air pollution control.
- Simple process for business start up : Start up will be formed by filling simple form through online portal and mobile application ( App).
- Start up India hub: This hub will be portal for the system and platform for knowledge exchange and access to funding.
- Protection of patent : Government will take steps for protection of patent and intellectual property right.
- Credit guarantee fund : Rs. 500 crores will be allocated per year for the next year for start up.
- Capital gain tax exemption When incubator invest funds in start up.
- Capital gain Tax exemption for investment in funds of funds recognized by the government.
- Income tax exemption for first three years.
- 35 new incubators and 31 innovation centers at national institutions.
- Atal innovation mission : It is decided to launch atal innovation mission to encourage young talent.
- 7 new research park : It is declared to set 7 new research parks with investment of Rs. 100 crores each.
- Faster closure of business – Exist of startup : Winding up of business will be allowed when having debt or certain criteria within 90 days from application filling for winding up.
- 80% rebate on filling patent application by start up.
- Panel for assistant in patent application and trademark application filling.
- Promotion of entrepreneurship in biotechnology.
- For labour laws, no inspection for first 3 years !!
- No need of prior experience in tendering : Prior experience condition is big problem in getting tender for startup. There is removal of prior experience criteria in manufacturing section for government tendering and public procurement.
Difficulties in implementation:
- Major difficulty in this scheme is that the scheme is dependent on certification from government department. We all are aware about difficulties in dealing with department.
- This scheme is for innovative products and services and what is new innovation is also dependent on view of certifying authority. So there may be difficulty to conclude your business as eligible for start up India scheme.
Overall start up India is new hope for youngster of India. Though Having some road blocks, It will definitely bring Indian Young talent in front of world. The need is only honest officials and right utilization of funds.