Policies, Codes & Other Documents
The Government of India launches schemes from time to time for the benefit and upliftment of a particular industry or group of citizens within the country. Here is everything one needs to know about two such schemes - Stand-up India and Start-up India Schemes.
Stand-Up India scheme is a scheme initiated by the Government of India, keeping women, scheduled castes and scheduled tribes in mind. It has been launched to provide finance and business opportunities to these categories. These individuals can avail Stand-up India loans anywhere between 10 lakhs to 1 crore.
This scheme promotes the establishment of greenfield enterprises in the form of a manufacturing unit, agriculture sector or trading purpose. A greenfield enterprise refers to a first venture of the eligible person in the aforementioned sectors.
Under this scheme, the funds are transferred directly to the recipient's account. The Stand-up India loan provides 85% of the project funding; the remaining 15% must be borne by the eligible individuals. While the Stand-up India loan interest rate is kept minimal, the tenure of the loan is typically 7 years. However, an extension of 18 months may be given in some cases.
Eligibility for Stand-Up India Scheme
The Start-up India Scheme is an initiative by the Indian Government to help young entrepreneurs develop unique business ideas and help them establish or grow their business. Under this scheme, the government helps a start-up or individual by providing financing with tax exemptions. It also ensures that creating a start-up is a smooth and straightforward process. The only condition to be considered is that the business should qualify as a Start-up.
Start-up India Scheme Eligibility
Benefits provided under the Start-up India scheme:
The Government of India has launched a website and an app for registration under this scheme. Eligible applicants can simply fill out a form and upload the necessary documents to apply.
The government provides lists of facilitators for trademarks and patents. The facilitator fees are borne by the Government, while the Start-up bears the statutory fees. While filing patents, start-ups are given a reduction of 80% in the cost.
The government has set Rs 10,000 crore fund as venture capital for eligible start-ups.
Eligible Start-ups will be exempted from income tax for 3 years, provided they hold the certificate from Inter-Ministerial Board (IMB).
7 new research parks have been set up to help start-ups in the R&D sector.
People investing their capital in venture funds will get exempted from capital gains.
Eligible Start-ups have the option to choose between various venture capitalists.
The Stand-up India scheme provides business opportunities to the minority groups (scheduled castes and scheduled tribes) and women entrepreneurs. On the other hand, Start-up India provides business opportunities to companies that fall in the category of Start-up and may not generate adequate revenue.
Stand-up India scheme loan covers 85% of the project, and individuals can apply for loans between 10 lakhs to 1 crore. Whereas in the Start-up India scheme, the start-ups get various financing options to fund their company and are also exempted from tax.
The eligibility for the Stand-up India scheme is that the person applying should belong to SC/ST category or should be a woman entrepreneur. The Start Up India scheme eligibility requires the company to be recently founded with an innovative idea and the annual turnover should not be more than 100 crores.
The Government is supporting a new age of self-reliant India by promoting entrepreneurs and innovators. Tata Capital supports the government’s mission and provides a wide range of business loan offerings for start-ups and new entrepreneurs. Check your business loan eligibility and get started today!
Policies, Codes & Other Documents