STARTUPS INDIA Registration
Startup India campaign is based on an action plan aimed at promoting bank financing for start-upventures to boost entrepreneurship and encourage start-ups with jobs creation. The campaign was first announced by Prime Minister Narendra Modi in his 15 August 2015 address from the Red Fort.
The Government of India has announced ‘Startup India’ initiative for creating a conducive environment for startups in India. The various Ministries of the Government of India have initiated a number of activities for the purpose.
To bring uniformity in the identified enterprises, an entity shall be considered as a ‘startup’-
- Up to five years from the date of its incorporation/registration,
- If its turnover for any of the financial years has not exceeded Rupees 25 crore, and
- It is working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property;
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BENEFITS OF REGISTERING UNDER THE START UPS INDIA INITIATIVE
- Tax holiday for 3 Years: Startups will be exempted from income tax for 3 years provided get a certification from Inter-Ministerial Board (IMB).
- No time-consuming compliances: Various compliances have been simplified for startups to save time and money. Startups shall be allowed to self-certify compliance (through the Startup mobile app) with 9 labour and 3 environment laws.
- Tax saving for investors:People investing their capital gains in the venture funds setup by government will get exemption from capital gains. This will help startups to attract more investors.
- Easy exit:In case of exit, a startup can close its business within 90 days from the date of application of winding up
- Easy access to Funds:A10,000 crore rupees fund is set-up by government to provide funds to the startups as venture capital. The government is also giving guarantee to the lenders to encourage banks and other financial institutions for providing venture capital.
- Reduction in cost:The government also provides lists of facilitators of patents and trademarks. They will provide high quality Intellectual Property Right Services including fast examination of patents at lower fees. The government will bear all facilitator fees and the startup will bear only the statutory fees. They will enjoy 80%reduction in cost of filing patents.