Hi Everyone,
This is Ravi and today, I will let you know about the Startup India scheme. To transform India into a leading center of innovation and entrepreneurship, the Government of India introduced the Startup India Scheme on January 16, 2016. This pioneering initiative aims to energize the startup ecosystem by offering a variety of support measures that make it easier to start and run businesses in India. Through incentives such as financial support, tax exemptions, and simplified regulatory processes, the scheme aims to nurture innovation, stimulate economic growth, and create numerous employment opportunities. This tutorial explores the key features and advantages of the Startup India Scheme, providing a detailed guide for aspiring entrepreneurs who wish to benefit from this initiative.
What is the Startup India Scheme?
The Startup India Scheme is a major initiative by the Government of India, launched on January 16, 2016, to promote entrepreneurship, drive sustainable economic growth, and generate large-scale employment opportunities. This scheme aims to create a robust ecosystem that nurtures startups and helps them grow.
Here’s a comprehensive guide to understanding the key features and benefits of the Startup India Scheme.
- Simplification and Handholding
Objective: Streamline the process for starting and running a startup in India.
a. Simplified Startup Registration: The scheme provides an easy and quick online registration process for startups through the Startup India portal and mobile app.
b. Legal Support and Fast-Tracking of Intellectual Property: Startups receive legal support to protect their intellectual property and benefit from expedited examination of patent applications at reduced costs.
c. Simplified Exit Process: In case a startup needs to shut down, the scheme offers a straightforward and fast-track closure mechanism, allowing entrepreneurs to move on to new ventures without prolonged delays.
- Funding Support and Incentives
Objective: Ensure startups have access to necessary funding.
a. Fund of Funds for Startups (FFS): This initiative involves a corpus of INR 10,000 crores managed by the Small Industries Development Bank of India (SIDBI). It provides equity funding support to startups through various venture capital funds.
b. Credit Guarantee Scheme: This scheme offers credit guarantees to banks and other financial institutions providing loans to startups, enhancing their access to financial resources.
- Industry-Academia Partnership and Incubation
Objective: Foster collaboration between educational institutions and the industry to support innovation and entrepreneurship.
a. Startup Hubs: These hubs provide mentorship, guidance, and support to startups, facilitating their growth.
b. Research Parks and Incubators: The scheme promotes the establishment of research parks and incubators at national institutes to support innovative startups with resources and infrastructure.
c. Atal Innovation Mission (AIM): AIM focuses on promoting a culture of innovation and entrepreneurship by establishing new incubation centers and supporting existing ones.
- Tax Exemptions and Benefits
Objective: Reduce the financial burden on startups and encourage reinvestment.
a. Income Tax Exemption: Eligible startups can benefit from a three-year income tax holiday within their first ten years of incorporation.
b. Exemption from Capital Gains Tax: Startups are exempt from capital gains tax if the gains are invested in government-notified funds or startups.
- Innovation and Entrepreneurship Promotion
Objective: Encourage innovative solutions to societal challenges and support entrepreneurial development.
a. Competitions and Challenges: The government organizes grand challenges and hackathons to stimulate innovative thinking and problem-solving.
b. Entrepreneurship Development Programs: Various training programs are offered to build entrepreneurial skills among students and aspiring entrepreneurs.
- Public Procurement and Government Support
Objective: Facilitate startups’ participation in government procurement processes.
a. Relaxed Procurement Norms: Startups can participate in government tenders without the requirement for prior experience or a certain turnover threshold, making it easier for new businesses to compete for government contracts.
Conclusion
The Startup India Scheme is designed to provide a nurturing environment for startups, helping them overcome initial hurdles and achieve sustainable growth. With benefits like simplified registration, funding support, industry-academia collaboration, tax incentives, and government procurement facilitation, the scheme aims to position India as a leading global startup hub.
Thanks,