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India is an emerging economy with a thriving startup ecosystem. The Startup India Scheme was introduced by the Government of India on January 16, 2016, to capitalise on this positive sentiment and to further boost the country’s evolving startup culture. This article will discuss this scheme in detail.
The primary objectives of this initiative are to reduce the fiscal burden of startups, maximise profits, generate employment, and instil an innovative spirit in the educated youth of India. The scheme has introduced various programmes for developing an entrepreneurial ecosystem and encouraging job creation across the country. These programmes are spearheaded by the Department of Industrial Policy and Promotion (DPIIT). The benefits of Startup India scheme are expected to extend beyond the major cities to even small towns and thus, empower the youth in their entrepreneurial journey.
The Startup India scheme aims to
This scheme aims to unify all relevant bureaucratic processes for the seamless setting up of new startups. As part of the Startup India benefits, the government has established various specialised cells. These cells help young entrepreneurs with startup registration, acquiring patents, and other related processes relevant to starting and managing a startup. The government has also launched a policy to enable new startups to start their operations within 90 days of registration under the Startup India registration process upon payment of the Startup India registration fee.
In order to support new startups financially, the scheme offers various grants, loans, and tax benefits. These initiatives will help new startups bring in adequate capital to ensure smooth business operations. For this purpose, the government has established a Rs. 10,000 crore fund that will help new startups over a 4-year period. So, new and upcoming startups stand to benefit from grants to the tune of Rs. 2500 crores every year from the government.
Only the below-mentioned business types can be registered as a startup under this scheme:
Post getting recognised as a startup, tax exemption is available under Section 80IAC of the Income Act 1961. This tax exemption is available for any three consecutive fiscal years out of the first ten years from the date of incorporation.
A startup registered under this scheme enjoys the following Startup India benefits:
A majority of startups in India are patent-based as they provide unique goods/services. Patents are, therefore, a necessity for many startups to begin their startup journey legitimately. Through this scheme, startups can easily procure a patent for a new product/service. Startup India benefits provide rebates of up to 80 percent of the patent cost. Patient facilitation is also free under this scheme.
Startup India tax benefits include various tax concessions that are made available for new startups. For instance, new startups are exempted from paying income tax for any three consecutive years within the first ten years after incorporation.
The Startup India Registration process is very simple. The government has provided various hubs for guiding entrepreneurs through the entire registration process and for addressing queries. Now, a startup can even undertake Startup India Registration online, making the registration hassle-free.
Obtaining a government contract involves following tedious procedures and norms. However, startups registered under this scheme are given first preference for government contracts/tenders, making it easier to secure these contracts.
Startups registered under the scheme are allowed to self-certify. They are allowed to self-certify for six employment laws and three laws related to environmental legislation. This benefit is available for five years.
The scheme hosts two startup carnivals annually. This helps entrepreneurs network with global stakeholders and build a strong network that will give them long-term benefits.
The Startup India registration fee (including professional charges) is fixed at Rs. 7,499. The whole registration process is completed in approximately 15-20 working days.
Follow the below steps for Startup India registration online:
The Startup India initiative was introduced to create a uniform framework for the entire startup ecosystem in India. This scheme is aimed at facilitating and encouraging entrepreneurship across every nook and corner of the country. For this, an easy Startup India registrationprocess has been created for all startups. For more details on the scheme, get in touch with experts at Tata Capital.
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