Startup India scheme is an initiative by the Government of India to “to build a strong eco-system for nurturing innovation and Startups in the country that will drive sustainable economic growth and generate large scale employment opportunities.” Its main aim is to aid the growth of start-ups across sectors and cities, including urban and rural areas.
If you are a budding entrepreneur, understanding the key details of the Startup India scheme could be of great advantage. Read on to know its action plan, benefits, eligibility and the registration process.
The Startup India programme was announced by Prime Minister Narendra Modi on the Independence Day of 2015, which became effective in January 2016. The main goal of this initiative is to boost entrepreneurship, generate employment opportunities and provide new ventures access to easy capital. Under this scheme, individuals belonging to SCs and STs and women entrepreneurs can avail of business loans between Rs.10 lakh and Rs.1 crore.
The government has laid out a comprehensive plan for the startups in India to become operational as smoothly as possible. The plan includes:
The Startup India scheme has made the application process simple by accumulating the formalities involved in one place. There is one specific department for each task, such as registration, accounting, and obtaining a patent. A policy introduced in 2015 also mandates every entity to begin its operation within 90 days of registration.
The government has offered several loans, grants and tax facilities under this scheme. All of these are aimed to make capital accumulation easier for startups. Our government has managed to gather funding of Rs.10,000 crore, which is set to be rolled out in a span of four years. As per the programme, the startups are also exempted from paying Income Tax for the first three consecutive years of their operation.
The action plan of startup India is segmented into three stages- simplification & handholding, funding support & incentives, and industry-academia partnership & incubation. These three stages are rolled out in multiple steps. They are briefly discussed below:
This includes the following facilities:
The facilities offered under this stage are as follows:
Benefits available under this section are as below:
Startups who register under Startup India Scheme enjoy several benefits. Following is the list of the eligibility criteria an entity has to satisfy in order to avail of the benefits:
Follow these steps to complete your registration:
The first step is to visit the Department for Promotion of Industry and Internal Trade or Startup India.
Scroll down and click on the ‘Registration Process’ tab. From the menu, select ‘Register at Shram Suvidha Portal and then login’
A new window will open. Enter your details such as name, mobile number, email id and verification code. Click on ‘Signup’.
you will receive an OTP. Enter it and set a new password using the link provided.
Now sign in using the credentials and create a profile of the shareholder(s) of the startup.
The primary aim of this scheme is to provide facilities and benefits to startups. There are numerous benefits from different aspects, such as tax benefits, financial support and networking opportunities. Some of them are as below:
Among the various financial and tax benefits, some are significant such as an 80% rebate on Patent cost and exemption from Income Tax for the first 3 years of operation.
Generally, the process of registration for startup companies used to be quite lengthy and time-consuming. To make this process simpler for the startups, the scheme has launched mobile apps and websites for the same in addition to arranging meetings for queries and doubts.
Additionally, startup companies are prioritised for government tenders under this scheme.
Government arranges two startup fests annually, both on national and international levels, for all shareholders from different industries to meet in one place. These provide huge networking opportunities for everyone and also a good place to exchange ideas.
Despite helping start-up companies in terms of development and expansion, here are a few challenges that this scheme is facing:
The Startup India initiative by the Government of India has helped new ventures to come up with their ideas and innovations. The Startup India programme aims to make this path smoother and boost the economy by creating employment opportunities. For entrepreneurs, this is a huge opportunity and support from the government. Register today to make your entrepreneurial dreams come true.
Ans: Only private limited companies, partnerships firms or limited liability partnership firms can apply for Startup India registration.
Ans: Here are the documents one requires for Startup India registration:
• PAN card
• Certificate of registration
• Pitch deck
• Revenue model
• IT returns for the last three financial years
Ans: No, foreign firms are not eligible to register under the Startup India scheme. However, an Indian subsidiary of a foreign company can go ahead with the registration.
Ans: Yes, GST registration is mandatory for Indian startups in many cases, such as startups under Reverse Charge Mechanism, companies that had pre-GST tax registrations and start-ups that have an annual turnover exceeding Rs.40 lakh.
Ans: No, individual entrepreneurs are not eligible for this scheme. Only startups approved by the Department for Promotion of Industry and Internal Trade can apply for this scheme.
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
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