Now Start Your Startup with Govt Sops

Now Start Your Startup with Govt Sops

 

Entrepreneurship now is a buzzword in India, with the government simplifying procedures and unleashing scores of incentives to build an enabling startup ecosystem in the country. The Government of India, on January 16, organised perhaps the largest startup conference for entrepreneurs in Delhi and unveiled a comprehensive Action Plan for ‘Start Up India’ programme. Here’s how it benefits you:
 
1. The government will set up a fund with an initial corpus of Rs 2,500 crore and a total corpus of Rs 10,000 crore over a period of four years. The fund will participate in the capital of SEBI registered venture funds, and invest in sectors such as manufacturing, agriculture, health, and education.
 
2. Startups will be provided a tax holiday of three years, ensuring that innovators won't lose the benefit even if they make a profit later.
 
3. The Startup India Hub will be established to serve as a single point of contact for startup ecosystem players.
 
4. Credit guarantee mechanisms to be set up to help startups meet their fund requirements, with an annual corpus of Rs 500 crore for the next four years.
 
5. For public procurement, new startups will be exempted from the criteria of prior experience/turnover.
 
6. In order to facilitate the exit of startups, the government has come up with Bankruptcy Bill, 2015, which has provisions for voluntary closure of businesses. The startups can wind up within a period of 90 days after making
 
an application in this regard.
 
7. The government will launch a mobile app and an online portal on April 1, where one can launch his/her enterprise by just filling up a short form.
 
8. Startups will have the privilege of self-certify compliance with labour and environment laws. In case of labour laws, no inspection will be conducted for three years.
 
9.  Startups shall be provided 80 per cent rebate in filing patents vis-a-vis other companies. Government to create a fast-track mechanism to dispose of startup patent applications at the earliest possible. These steps by the government are meant to facilitate innovation and creativity in the country.  
 
10. Investments made by incubators above fair market value (FMV) shall also be exempted. This is in accordance with the exemption provided to venture capital funds to invest in startups above FMV.
 
11.  Startup Fest should be organized on a regular basis. It should act as a collaboration platform to showcase innovation.
 
12. Atal Innovation Mission will help build sector specific incubators; establish 500 incurring labs; facilitate pre-incubation training to potential entrepreneurs; strengthen existing incubators; and seed fund high growth startups.
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