We’ll look briefly at the startup program in India in this section. We’ll also look at how this helps startups achieve their potential and beyond.
What is a startup?
Legally speaking, the word startup refers to companies founded within the last seven years. The startup mark can be applied to a business for biotech companies until ten years from now.
Conditions have been declared by the Department of Industrial Policy and Promotion that a business that is to be recognized as a startup must fulfill:
- The revenue of the company in each of the previous financial years do not exceed 25 Crores.
- The company is located in India
- The business was recognized to work towards economic, technological, and intellectual property innovation, production, delivery, and commercialization of products and services.
Some of the startups registered under Startup India
Action plan of Startup India
The Modi government stresses the achievement of economic goals as one of the administration ‘s key fields. Improvement governance aims to promote job creation, foreign investment, skills development, and entrepreneurship.
The Startup India Action Plan has been launched to accomplish all these objectives under one comprehensive policy framework for the entire world. Under the policy provisions, startups are entitled to several benefits, some of which are regulatory and tax benefits, excluding capital gains, and government support for startup funding.
Benefits of Startup India:
Unbelievable results for India’s business sector have been achieved by induction schemes and programs by the Indian Government, along with the Industrial Policy and Promotion Department. With more than 19,000 startups operating across the country, eight are valued at $1 million or more (Unicorn Club).
To assure that the growing number of startups in India have the right tools for growth, the Startup India initiative was launched. Such schemes will also help new startups filing now or in their early stages. Here are some of the advantages of the Startup India initiative.
- Financial Benefits – As mentioned earlier, startups tend to receive an 80 percent rebate on government patent fees.
- Registration Benefits – On 1 April 2016, the State launched a mobile application to open a portal to allow businesses to register within a day.
- Income Tax Benefits – According to startup India, startup companies are eligible for the first three years of exemption from income tax in general. However, a startup needs to receive a certificate from an Inter-Ministerial Board formed for the same reason to gain an income tax exemption.
- Startups in the automotive sector are exempt from ‘prior experience’ or turnover requirements. Nevertheless, the quality requirements and technological criteria of public procurement are not relaxed.
- SIDBI offers four years of guaranteed funds.
- During the first three years of incorporation, labor law inspections will not be performed.
- Compliance with environmental law after self-certification is only mandatory.
To foster the success of startup culture and equip these companies with the necessary resources and installations, Startup India has proved to be a miracle worker.