Prime Minister Narendra Modi announced a Rs. 1,000 Crore seed fund for India Startups, to allow initial funding for startups. "This is going to help to launch and develop new businesses," Modi said at the International Summit of Prarambh Startup India. Modi said, "India is trying to create a startup ecosystem based on the key principles of youth, youth, and youth." The Government will also enable new companies to develop debt capital by providing guarantees.
The GeM platform offers local startups the chance to take part in government tenders with large corporations. Modi reported that approximately 8,000 startups had so far registered and had done almost Rs 2,300 crore. He praised the startups for creating innovative solutions during the pandemic and for supporting the efforts of the government to normalize economic activity. More than 10 startups across sectors ranging from beauty to payments turned unicorn in 2020 against nine in 2019.
Startup Ecosystem facilitated through various Government Departments & Programs
- 4000+ Startups have benefitted in the last year through various programs of the Central Govt.
- 960 crore of funding has been enabled to Startups through various schemes.
- 828 Cr sanctioned funds for infrastructure.
With the objective to build a strong eco-system for nurturing innovation and startups in the country the Government launched a Startup India Action Plan that offers the following support to recognized supports through:
- IT exemptions for 3 years
- Capital gains exemption to people investing such capital gains in the Government recognized Fund of Funds
- Tax exemption on investments above the Fair Market Value
Legal Support in Patent Filing
- Fast track of Startup Patent applications
- A panel of facilitators to assist in filing applications, govt. bears facilitation costs: 423 facilitators for patent & design, 596 for trademark applications
- 80% rebate in filing of patents: 377 startups benefitted
Self-certification and compliance of 9 environments and labor laws through Startup India web portal/mobile app. Online self-certification for Labour Laws enabled through ‘Shram Suvidha’ portal.
Relaxed Norms for Public Procurement
By easing the requirement of prior experience and prior turnover in tenders for application by startups.
Fund of Funds:
- ₹ 10,000 Cr. Fund of Funds to be provided by Mar 2025: Avg. ₹ 1,100 Cr. Per year
- Operating guidelines has changed to incorporate the following:
- 2x of FFS to DIPP Startups Allow funding of the entity after ceasing to be the startup (under DIPP)
- 600 Cr (+25Cr Interest) given by DIPP to SIDBI which further committed Rs 623 Cr to 17 VC. 56Cr has been disbursed to 72 startups catalyzing investments of Rs 245 Cr
Credit Guarantee Scheme for Start-Ups
- Corpus of ₹ 2,000 Cr across 3 years
- Collateral Free, Fund & Non-Fund Based Credit Support
- Loans of up to 5 Cr. per Startup to be covered
- Status: EFC Memo circulated on 22 March 2017 to 6 Departments
- Impact: Credit guarantee to benefit 7,500+ Startups in 3 years
Providing and building infrastructure across the country by setting/scaling up: 31 Innovation Centers, 15 Startup centers, 15 Technology Business Incubators, 7 Research Parks, 500 Atal Tinkering Labs.
6398 Applications received; 4127 startups recognized; 1900 startups eligible for tax exemption (900 processed, 1000 pending); 69 startups given tax exemption.
What is GeM?
Government e Marketplace (GeM) is a government and agency online procurement platform and the most commonly used public procurement channel in India. MSMEs and DPIIT recognized startups can be used to register as sellers on GeM, and directly to government bodies to sell their goods and services. GeM Startup The runway is the latest initiative laid by GeM to empower businesses to enter the universe of government purchasers through the provision of creative, design, process, and operation-specific goods.
To apply to Startup India Seed Fund, here are a few steps you are required to follow:
1. Registration of the Company:
The company needs to register itself through the GeM Portal. In the website, it has instructed on how to register the company in the portal and to check if the company is eligible.
2. Fill Up Application:
Fill the Form Correctly and Upload the appropriate Document then Submit the Application.
- Name of the firm: Provide name of the business firm which shall be used to sell products and services on GeM Portal. Please note you must carry registration proof in the name of business firm.
- Address of the Business firm: Provide the registered address of the business firm.
- Nature of the Business: Describe the business activity of the firm such as the manufacturer of goods, service provider, retailer, wholesaler, distributor, etc.
- List of Products & Services to be sell in GeM: Enter all the goods and services needed for public procurement in the GeM Portal. By separating commas, a company may join many products and services.
- Owners Name: Enter the company owner's name. In the case of a company, LLP, or partnership firm, you may enter any one authorized partner/director details.
- Owner's Aadhar Or PAN Number: Provide the 12 digits Aadhar Number of the business firm owner. In the case of a company, LLP, or partnership firm, you may enter any one authorized partner/director details.
- Type of Firm: Select the nature of your business entity.
- E-mail ID: Enter the email id of the owner or authorized director/partner.
- Mobile Number: Enter the mobile number of the owner or authorized director/partner.
- Bank Account Details: Provide complete bank details of the business the firm under which payment shall be received after goods/services public procurement or on completion of tender.
- Date of Business Incorporation: Enter the date of the company/firm incorporation which shall be available in partnership deed or certificate of incorporation or other business registration certificate (in case of the sole proprietor).
- Income Tax Incorporation: Select yes if the income tax return of the firm or owner (in the case of the sole proprietor) has been filed for any previous year. Else select No.
3. Online Payment: Make an online payment to process your application with our Secured Payment Gateway.
4. Schedule Call-back: Schedule a call back for validation
5. Validate and complete registration: To receive a call from the validation department and complete your registration.
Startups are excluded from specific selection requirements such as Prior Experience, Preview and Earnest Money Deposits. The incentive to consult with the government on trial request, making it more likely to introduce a new product. On GeM, purchasers may rate their product or ServiceNow more restrictive definitions for GEM, meaning the publication on the website of new and creative products.