Launched on January 16, 2016, Start-up India is a federal initiative to support entrepreneurs. It creates a vibrant start-up environment and shifts India towards job creation rather than looking for them. Hence, The objectives of the Initial India mission to create a strong ecosystem to promote innovation and start-ups in the country are very clear.
The aim is to promote sustainable economic growth, create large-scale jobs and empower start-ups to grow through innovation and design. So, let’s start with the most basic and make a way for what this project offers you
WHAT IS A START-UP?
According to the announcement of the Department of Industry and Domestic Trade Promotion on February 19, 2019. The definition of a start-up is in effect once every 10 years from the date of registration of a company or its.
It has a revenue of not more than Rs.100 crores in any financial year since it was merged or registered.
It works towards the invention, development, or growth of products or services, or processes. Moreover, the company has a scalable business model with high potential for job creation or wealth creation.
Also, a company created by disassembling or rebuilding an existing business unit is not considered a startup. Further, after the completion of 10 years from the date of incorporation or registration of a business entity, any of its turnover in the previous financial years will be Rs. 100 crores.
START-UP INDIA SCHEME BENEFITS
Initially, a company recognized by DPIIT can avail several benefits offered under the Start-up India scheme:
Self-certification under Labor and Environmental Acts
Start-up India Mission, start-ups are allowed to self-certify their compliance under six labor laws. And also three environmental laws from the date of incorporation for five years. This advantage is provided to reduce the regulatory burden for start-ups. So that they can aim at their core business and get compliance costs low.
Tax removal for three years
Profits earned by accredited start-ups are eligible for three consecutive years of income tax exemption, subject to inter-ministerial board certification. Hence, these tax incentives for start-ups in India are provided to facilitate business growth and meet working capital requirements in the early years.
Tax removal on investment
This is an important tax benefit for start-ups in India if the Start-up India Mission project receives consideration from the issuance of shares. So, It exceeds the face value of such shares if there is a Cabinet Board certification between the start-ups, Rs. 10 crores derived from such shares exceeding the fair market value of such shares is tax-deductible.
Easy winding up of Company
The notable name of start-ups is fast track companies, which can hurt other companies within 180 days to 90 days. This task simplifies the process to liquidate the assets and make payments to the creditors and appoint bankruptcy specialists. Moreover, It has done this within six months of applying for such leave.
Start-up Patent right
Most start-ups have their base based on innovation, and their intellectual assets are very important. The benefit of the Start-up India Mission is that it offers high-quality intellectual property services and resources to help start-ups secure and commercialize their IPRs.
IMPACT: These include expeditious monitoring of start-up patent applications, 80% discount on patent filing compared to other companies, 50% discount on the filing of trademarks compared to other companies, and a panel of facilities to assist in IP filing, Government support to accept utilities and facility costs.
Relaxation in Public Procurement Norms
Public procurement, governments, and state-owned enterprises purchase goods and services from the private sector. Now, according to the Start-up India Mission, all Indian government departments, ministries, and public sector undertakings have empowered to facilitate public procurement regulations to offer an opportunity for start-ups and meet quality and technical specifications.
IMPACT: This allows a startup to obtain exemptions from interesting deposits, pre-sales, and experience requirements in the case of government tenders. This purpose can be listed as vendors on the Government of India’s largest e-purchasing portal, which is Government – Market (GM).
SIDBI FUND OF FUNDS:
SIDBI or the Small Industries Development Bank of India, a development financial institution managed by the government of India has fixed a corpus fund of Rs. 10,000 crore.
SIDBI or the Small Industries Development Bank of India has set aside a corpus fund of Rs. 10,000 crores. The government of India manages the growth financial institution for several needs.
SIDBI controls this fund and aims to provide equity funding support for the growth and development of innovative companies. The nature of such a corpus is the funding of funds, i.e. the government contributes to the capital of SEBI registered funds, which invests more in the initial stages.
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Hence, the Central Government inaugurates the Start-up India scheme and dedicated solely to the promotion of employment and entrepreneurship as the Government seeks to provide multiple tax incentives, facilitate compliance, create rapid IPR monitoring, and provide other benefits to support entrepreneurs. Can focus on their core business and have no regulatory burden.