Startup India is an initiative launched by the Government of India aimed at making India a thriving startup ecosystem globally. It beckons India’s entrepreneurs, thinkers, and innovators to join hands in driving India’s economic growth.
The purpose of the scheme is to realise the vision of a self-reliant India and create large-scale employment opportunities by providing easy access to finance such as an SME loan. Let us understand the scheme in detail.
Action plan of Startup India
The officially documented action plan is divided across the following areas:
- Simplification and handholding, i.e., to simplify the initial work and regulatory burden on startups so that they can focus completely on their core business idea.
- Funding support via Startup India Scheme loans and incentives for the growth and development of innovative enterprises at the initial stages.
- Organising frequent startup fests to provide a platform for visibility and encourage collaboration between academia, industry, and investors.
Startup India Scheme benefits
- Startups get special financial benefits such as a credit guarantee fund.
- Tax benefits such as tax exemption on capital gains and exemption from income tax for three years.
- Under this scheme, startups get priority in government tenders.
- Startup India Scheme has also launched a community forum called the Startup Hub. You can ask your doubts regarding startup operations and simplify the initialization process.
- The Startup Hub and Industry-academia partnership programmes also provide excellent networking opportunities.
Additional Read: What Are the New Business Loan Schemes for SMEs in 2021?
Startup India Scheme eligibility
- Your Startup should be registered as a private limited company/partnership firm/limited liability partnership.
- Your company’s turnover should be less than INR 100 crores in any of the previous financial years.
- Your startup should be working towards innovation or improvement of existing products, services, and processes. Additionally, it should have the potential to generate employment and create wealth.
- If your company was formed by the splitting or reconstruction of an existing company, it would not be considered a “startup”
- Your company will only be considered a startup up to 10 years from the date of its incorporation.
How to register for Startup India Scheme
Simply go to the official website of Startup India or download their official mobile app and fill out a form. You will also be required to provide the following documents:
- The incorporation or registration certificate of your startup
- A document about your startup, describing how your startup is working towards innovation, development, or improvement of a product, process, or service. It should also elaborate upon its scalability in terms of employment generation or wealth creation.
- A PAN Card that is registered in the name of the entity. Although this is optional, it is recommended.
If your startup gets recognised, you would be able to instantly download a system-generated certificate of recognition. If your application gets marked as incomplete, you can edit it after logging into the portal. However, if your application gets rejected, you can submit a new application within the next three months.
Additional Read: Top Government Schemes for Startups and MSMEs in India
To sum up
If you believe in your business idea, we do too! Check out Tata Capital’s business loan offerings for startups. We offer hassle-free loan disbursal at attractive interest rates. Check your business loan eligibility.