1. Register under the start up India scheme with Startway Business Solutions and get a Startup India certificate in just 2 to 5 working days.
2. Submit just 3 – 5 documents and start the whole process within seconds online now.
What is Startup India Scheme
The Startup India scheme, launched by the Government of India in 2016, is a transformative initiative aimed at fostering innovation, entrepreneurship, and economic growth. This comprehensive program encourages the creation and sustenance of startups by providing a conducive ecosystem and numerous benefits. Eligible startups receive recognition from the Department for Promotion of Industry and Internal Trade (DPIIT), paving the way for various advantages such as tax exemptions, funding support through a Fund of Funds managed by SIDBI, and simplification of regulatory compliance. By promoting a culture of innovation and easing the hurdles faced by startups, the scheme aims to propel India towards becoming a global hub for cutting-edge technologies and creative enterprises. With a focus on job creation and wealth generation, Startup India plays a pivotal role in shaping the future landscape of the Indian economy.
1. Income Tax Benefits
Startups are now exempt from income tax for a period of three years from the date of incorporation. , as long as they are certified as such by the Inter ministerial Certification Committee. Further, upon receipt of recognition from the Department for Promotion of Industry and Internal Trade (DPIIT) and if the total amount of paid-up share capital and share premium of the startup after the proposed issue of shares(if any) does not exceed ₹25 Crore, the startup will also be exempt from capital gains tax under Section 56 of the Income Tax Act, 1961-2014.
2. Financial Benefits
Startups receive a discount of 80% on intellectual property rights (IPR) costs for patents and 50% for trademarks, and receive active support from government-provided intermediaries who help protect and commercialize intellectual property rights. The examination and disposal of property rights applications will also be accelerated. The government also covers the fees of the moderators.
3.Registration Benefits
Registration of startups in India remains extremely complex as incorporation and registration are considered more difficult than actually running a business due to extensive requirements. As part of the plan, a portal will be provided to create networking opportunities and support for startups. The government has provided a problem-solving window under this plan., Financing Benefits
Certain states provide seed funding for startups certified under the plan. Know the status and current requirements.
4.Startup India Scheme: Regulatory Benefits
Under this scheme, startups can self-certify compliance with six labor laws and three environmental laws through a simple online process. With regard to labor law, no inspections will be carried out for a period of 5 years unless there is a credible and verifiable complaint of a violation, submitted in writing and approved by an official of at least a higher level than the inspecting person officials have.
In the case of environmental laws, start-ups falling in the “white category” (as defined by the Central Environmental Protection Agency) would be able to self-certify their compliance and in such cases only random checks would be carried out
5. Benefits of Public Procurement
Once your startup is certified by the Inter ministerial Certification Board and obtained a Department of Industrial Policy and Promotion(DIPP)number, you can appear as a seller on the Indian government website. Procurement Portal (Government e-Marketplace)and have inside information on all ministries ,departments and public sector undertakings of the Government of India, provided they are able to meet technical and quality requirements. Startups certified under the Startup India program are also eligible for security deposit waivers in their offering as well as prior billing and experience requirements.
Eligibility
Entity Type:
- The startup should be a private limited company, registered partnership firm, or a limited liability partnership (LLP).
- It should be in the early stage of development or in the process of building a scalable business model with a high potential for employment or wealth creation.
Age of the Startup:
- The startup should be incorporated in India and should not be more than 10 years old from the date of its incorporation.
- For biotechnology startups, the age limit is extended to 15 years.
Annual Turnover:
- The turnover of the startup should not exceed INR 100 crores (approximately $13 million) in any of the previous financial years.
Innovation and Development:
- The startup should be working towards innovation, development, deployment, or commercialization of new products, processes, or services driven by technology or intellectual property.
Recommendation/Patent:
- The startup should have obtained a recommendation letter from an incubator funded by the Government of India or be supported by an incubator recognized by the government.
- In the absence of an incubator, the startup should have filed a patent application with the Indian Patent and Trademark Office in areas affiliated with the nature of the business.
Startup India Scheme is an initiative launched by the Government of India to promote and support startups in the country. The scheme was launched on January 16, 2016, by Prime Minister Narendra Modi. The main objectives of the Startup India Scheme include fostering entrepreneurship, promoting innovation, and creating a conducive environment for startups to thrive.
Key features and components of the Startup India Scheme include:
- Recognition as a Startup: Startups meeting the defined criteria can obtain recognition from the Department for Promotion of Industry and Internal Trade (DPIIT). This recognition brings various benefits, such as eligibility for various schemes and exemptions.
- Tax Benefits: Startups are eligible for income tax exemptions for three consecutive assessment years out of their first ten years since incorporation. Additionally, there are exemptions on capital gains if the money is invested in specified funds.
- Funding Support: The government has set up a Fund of Funds with an initial corpus to provide financial support for startups. This fund is managed by SIDBI (Small Industries Development Bank of India).
- Simplification of Compliance: The government has introduced measures to simplify the regulatory environment for startups. This includes self-certification and compliance under various labor and environmental laws.
- Innovation and Research Support: The scheme encourages startups to engage in innovation and research and development activities. There are initiatives to promote collaboration between academia and startups.
- Networking Opportunities: Startups are provided with opportunities to connect with investors, mentors, and industry experts through various networking events and platforms.