Benefits of Startup India Initiative and How Businesses Can Avail Them?
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Every entrepreneur feels like working with a small kid while working on their dream project i.e. their startup idea. They want to get all the facilities in order to grow their startup from a grounded level to a full-fledged company. During this period of growing a startup to a company, every government provides all the needed facilities to a startup required by them.
Likewise, the Government of India has also started the 'Startup India Initiative' on 16th January 2016. Entrepreneurs can avail the benefits of startup India Initiative for starting and growing their businesses.
About Startup India Initiative by Government of India
How to Register Under Startup India Initiative
Benefits of Startup India Initiative by Government of India
1. Self-certification
2. Startup India Hub
3. Simple Process
4. Patent Protection
5. Rs.10,000 Crore Startup Fund
6. National Credit Guarantee Trust Company
7. No Capital Gains Tax
8. No Income Tax For Three Years
9. Tax Exemption for the Investment of Higher Value
10. Organizing Startup Fests
11. Innovation Focused Programs for Students
12. Setting up Incubators
13. Research Parks
14. Entrepreneurship in Biotechnology
15. Dedicated Programmes in Schools
16. Legal Support
17. Rebate
18. Easy Rules
19. Faster Exits
All about Startup India Scheme and Registration Benefits
About Startup India Initiative by Government of India
Likewise, the Government of India has also started the 'Startup India Initiative' on 16th January 2016, a pioneering initiative intended to support startups and budding entrepreneurs by providing them with the benefits of Startup India. The program primarily focuses on three major areas:
- Simplification and Handholding.
- Funding Support and Incentives.
- Industry-Academia Partnership and Incubation.
The scheme facilitates the startup to be able to get recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) in order to avail the abundant benefits to start their own business in India.
How to Register Under Startup India Initiative
There are three types of companies in India under which various startups get themselves registered:
- Partnership Firm
- Limited Liability Partnership Firm (LLP)
- Private Limited Company
The firm must fulfil the following eligibility criteria for Registration under Startup India:
- A company must be registered as a Partnership Firm, Limited Liability Partnership Firm (LLP) or Private Limited Company.
- The existence period of the company must not be more than 10 years from the date of incorporation.
- The annual turnover of the company must not exceed Rs.100 crore for any financial year since its incorporation.
- The entity should not have been formed by splitting up or reconstructing an already existing business.
- The startup must work towards innovation, development, or improvement of products or processes or services and have an extensible business model with a high potential of wealth creation and employment opportunity.
Once the startup fulfils the above-mentioned criteria, they are eligible to avail the following Startup India Scheme Benefits by the Government of India.
Benefits of Startup India Initiative by Government of India
1. Self-certification
The startups shall be allowed to self-certify and comply through the Startup mobile app with 9 Labour Laws and 3 Environment Laws to avoid inspection concerning the registration of the firm, building and construction workers, employees' provident funds, insurance cover and more.
2. Startup India Hub
By creating a virtual platform, the government facilitates the entire startup ecosystem to connect and engage with each other, enable knowledge exchange and access to funding.
Shubham Kumar
3. Simple Process
The process of startup registration has become simple with the launch of a mobile app and website. Any firm interested to get registered under Startup India may simply fill the form available at the website and upload the necessary documents. The entire process has become online.
4. Patent Protection
Several measures are taken under this scheme to promote awareness and adoption of the Intellectual Property Right (IPR) by the startup offices to aspiring entrepreneurs. This helps in giving protection or security to the entrepreneur as the dream project is now registered in the name of a single entity.
5. Rs.10,000 Crore Startup Fund
The Life Insurance Corporation of India plays a major role in developing this corpus to give them great startup India benefits. This helps in giving a cover to the startup and to the entrepreneur by giving the benefit of Rs.10,000 crore fund, depending upon the category and the future growth of a startup.
6. National Credit Guarantee Trust Company
The credit guarantees via National Credit Guarantee Trust Company have been planned with a budget of Rs.500 crore per year for the next four years to provide financial support to benefit entrepreneurs.
7. No Capital Gains Tax
The exemption shall be given on capital gains if that amount is invested in the Fund of Funds recognized by the Government. This gives an edge to a startup over getting the maximum amount of fundings from their investors, without paying a single penny in the form of tax due to value addition to the startup.
8. No Income Tax For Three Years
The entrepreneurs are exempted from paying income tax for the initial three years, as it will help the startups to grow in the future. Hence, the startup would be able to minimize the capital flow towards the government till significant growth is achieved.
Alan Joseph
9. Tax Exemption for the Investment of Higher Value
Investment of higher value than the market price should be exempted from paying tax. This helps startups to get a funding of bigger amount and that too without any problem as they don't have to pay tax for it.
10. Organizing Startup Fests
Startup fests would be organized at national as well as international stages to provide exposure to budding entrepreneurs. This is just helping in increasing the number of entrepreneurs and successful startups and their businesses in the country.
11. Innovation Focused Programs for Students
It is launched to boost innovation and encourage talented youth. This innovation will help in creating new ideas and jobs along with other beneficial services for the citizens of the country.
12. Setting up Incubators
Various incubation centers have been build at the National Institute of Technology (NITs) to provide startups with necessary guidance, skill development tips, mentoring sessions, tech support, networking, infrastructure, coworking space and more.
Piyush Mishra
13. Research Parks
The government has set up Research Parks in various Indian institutes of Technology (IITs) with an investment of Rs.100 crore each. The startups can do their research and development work in these research parks.
14. Entrepreneurship in Biotechnology
The government will establish various biotechnology offices across the country in order to promote startups in the biotechnology sector.
15. Dedicated Programmes in Schools
The government will introduce innovation-related programs for students in school. For this, the government is introducing the subject related to startup and business. This will help in growing the mindset of the students towards the startup that will bring innovative ideas into existence.
16. Legal Support
Through Startup India Initiative, Legal Support will be provided for new startup facilities and other official documents will be given. This could be very beneficial for a startup in its initial stages.
Chayanika Goswami
17. Rebate
When the startup has to pay too much for tax, rent, or utility then the Startup India scheme provides relaxation by giving a rebate of 80%.
18. Easy Rules
Public procurement and rules of trading have been simplified for the startups in the Startup India Programs. The government has simplified all the rules and regulations of any startup which would further ease the movement of the business.
19. Faster Exits
If the startup fails again, the government will provide an easy way out. This will help the entrepreneur to get an easy exit without any problem. Hence, makes an easy entry and exit for an entrepreneur for his or her startup.
FAQs
What is Startup India?
Startup India is a pioneering initiative of the Government of India intended to support startups and budding entrepreneurs by focusing on three major areas:
- Simplification and Handholding.
- Funding Support and Incentives.
- Industry-Academia Partnership and Incubation.
Who is eligible for Startup India Benefits?
Any company having an annual turnover not exceeding Rs.100 crore for any of the financial years since incorporation/registration.
Why do startups fail in India?
The reasons that are responsible for the failure of a startup:
- Lack of innovation.
- Lack of funds.
- Lack of mentor.
- Lack of focus and legal disputes.
- Poor customer service and low-quality products.
- Highly anticipated model against the nature and lifestyle of the target audience.
What is the best startup business in India?
Best Startup Businesses in India to start with:
- Virtual Assistance
- Freelancing
- Reviewing Products
- Affiliate Marketing
- Graphic Designing
- Podcast
- Blog Monetization
- Online Course Creation
- Selling Products Online
- Printing On Demand
How can I start a startup in India?
Steps to start a startup in India:
- Check the feasibility of your idea in the market.
- Do market research.
- Keep an eye on your competitors.
- Have a business plan ready.
- Look for funds.
- Register in Startup India Program.
Do startup companies offer benefits?
Yes, they do provide benefits like work from home, letters of recommendation, incentives and other perks like free meals and lunch.
What are the main benefits of working in a startup?
The main benefits of working in a startup over a corporate job are:
- Your work will be acknowledged.
- You'll be given more responsibilities.
- You'll be learning a lot.
- You'll have a great experience working with true innovators.
- You'll get exposure.
- Skill development.
- Perks.
What are the benefits of Startup India?
The benefits of Startup India are as follows:
- Self-certification.
- Startup India Hub.
- Simple Process.
- Patent Protection.
- Rs.10,000 Crore Startup Fund.
- National Credit Guarantee Trust Company.
- No Capital Gains Tax.
- No Income Tax For Three Years.
- Tax Exemption for the Investment of Higher Value.
- Organizing Startup Fests.
- Innovation Focused Programs for Students.
- Setting up Incubators.
- Research Parks.
- Entrepreneurship in Biotechnology.
- Dedicated Programmes in Schools.
- Legal Support.
- Rebate.
- Easy Rules.
- Faster Exits.
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