List of benefits announced for start up by prime minister Narendra Modi
Start up India and Stand up india is the terms used by our honourable prime minister mr. Narendra modi while announcing benefits to the start ups in India. On 16th jan,2016 Room was full with energy and passion giving push to the start up in India and spreading energy across india through live webcast of the event.
PM announced following benefits for start ups keeping in mind support required by the start ups and job creation by the start ups
- Self certification compliance is sufficient and to gain importance
- NO inspection by government for three years to allow start up with smooth path of growth
- Dedicated app and website by GOI for start ups, Hub to be created through single point of contact
- E registrations with small and easy forms
- Exit strategy for start ups with bankruptcy provisions
- IPR, Patent registration fees savings upto 80% (This is very good step as mainly IT start up has with them is IPR as asset, which needs to be secured)
- Support for getting IPR registered asap
- Start up registering on or after 1st april,2016 will not attract tax for three years
- Government procurement which has main criterion of experience and turnover for any bidding to be relaxed for start ups
- INR 10,000 crore fund of funds for start ups
- Innovation programme to start many schools and Incubation centres targeting 10 lakh children
- Relaxation for start up on capital gain for investing in their start up and also benefits for venture capital investment
Clarifications on eligibility and applicability with effect from announcement expected soon from official departments of government of India.
With this school of thought start up are getting direct supportive hand from Prime Minister Narendra modi. Some of the start up founder’s practo.com, OYO rooms, Paperboat FMCG players also appreciated governments support for the start-ups.
It clearly showing the signs that upcoming budget theme to be announced in Feb-2016 would be start up and small and medium enterprises businesses. #startupindia #standupindia
Draft Conditions for taking benefits of Startup Scheme:
1. It must be an entity registered/incorporated as a:
a. Private Limited Company under the Companies Act, 2013; or
b. Registered Partnership firm under the Indian Partnership Act, 1932; or
c. Limited Liability Partnership under the Limited Liability Partnership Act, 2008.
2. Five years must not had elapsed from the date of incorporation/registration.
3. Annual turnover (as defined in the Companies Act, 2013) in any preceding financial year must not exceed Rs. 25 crores.
4. Startup must be working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
5. The Startup must aim to develop and commercialise:
a) a new product or service or process; or
b) a significantly improved existing product or service or process, that will create or add value for customers or workflow.
6. The Startup must not merely be engaged in:
a. developing products or services or processes which do not have potential for commercialization; or
b. undifferentiated products or services or processes; or
c. products or services or processes with no or limited incremental value for customers or workflow
7. The Startup must not be formed by splitting up, or reconstruction, of a business already in existence.
8. The Startup has obtained certification from the Inter-Ministerial Board, setup by DIPP to validate the innovative nature of the business and
a. be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator established in a post-graduate college in India; or
b. be supported by an incubator which is funded (in relation to the project) from GoI as part of any specified scheme to promote innovation; or
c. be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator recognized by GoI; or
d. be funded by an Incubation Fund/Angel Fund/ Private Equity Fund/ Accelerator/Angel Network duly registered with SEBI* that endorses innovative nature of the business; or
e. be funded by GoI as part of any specified scheme to promote innovation; or
f. have a patent granted by the Indian Patent and Trademark Office in areas affiliated with the nature of business being promoted.
* DIPP may publish a ‘negative’ list of funds which are not eligible for this initiative.