Category : Entrepreneurs

Narendra Modi’s announcements and StartupIndia policy pointers:

  1. Compliance regime based on self-certification. Labour laws – no inspection for 3 years
  2. Startup India hub – single-point contact (‘friend, mentor, guide’)
  3. Mobile app to be launched on April 1: registration of startup company in one day | Also portal for clearances, approvals and registrations
  4. Fast-track mechanism for startup patent applications
  5. Panel of legal facilitators for startups to file IP (patents, designs, trademarks) – costs borne by government
  6. 80% rebate on filing of patent applications by startups, as compared to other companies
  7. Relaxed norms of public-procurement for startups. No requirement of turnover or experience, but no relaxation of quality
  8. Faster exits for startups (Insolvency and Bankruptcy Bill), eg: wind up within 90 days
  9. Fund of funds – initial corpus – INR 2,500 crore, later on 10,000 crore
  10. Credit guarantee fund for startups
  11. Tax exemption on capital gains
  12. Tax exemption to startups for 3 years to promote growth
  13. Atal Innovation Mission:sector-specific incubators, 500 tinkering labs, pre-incubation training,seed fund for high-growth; PPP model being considered for 35 new incubators; 31 innovation centres at national institutes, 7 new research parks like IIT-M, 5 new bio-clusters
  14. Innovation Core Programs for school students in 5 lakh schools
  15. Annual Incubator Grand Challenge to create world class incubators in India
  16. National and International Startup Festivals to provide visibility

Conditions for taking benefits of StartupIndia Scheme:

  1. It must be an entity registered/incorporated as a:
    Private Limited Company under the Companies Act, 2013; or
    b. Registered Partnership firm under the Indian Partnership Act, 1932; or
    c. Limited Liability Partnership under the Limited Liability Partnership Act, 2008.
  2. Five years must not had elapsed from the date of incorporation/registration.
  3. Annual turnover (as defined in the Companies Act, 2013) in any preceding financial year must not exceed Rs. 25 crores.
  4. Startup must be working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
  5. The Startup must aim to develop and commercialise:
    a. new product or service or process; or
    b. a significantly improved existing product or service or process, 
that will create or add value for customers or workflow.
  6. The Startup must not merely be engaged in:
    a. developing products or services or processes which do not have potential for commercialization; or
    b. undifferentiated products or services or processes; or
    c. products or services or processes with no or limited incremental value for customers or workflow
  7. The Startup must not be formed by splitting up, or reconstruction, of a business already in existence.
  8. The Startup has obtained certification from the Inter-Ministerial Board, setup by DIPP to validate the innovative nature of the business and
    a. be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator established in a post-graduate college in India; or
    b. be supported by an incubator which is funded (in relation to the project) from GoI as part of any specified scheme to promote innovation; or
    c. be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator recognized by GoI; or
    d. be funded by an Incubation Fund/Angel Fund/ Private Equity Fund/ Accelerator/Angel Network duly registered with SEBI* that endorses innovative nature of the business; or
    e. be funded by GoI as part of any specified scheme to promote innovation; or
    f. have a patent granted by the Indian Patent and Trademark Office in areas affiliated with the nature of business being promoted.

* DIPP may publish a ‘negative’ list of funds which are not eligible for this initiative.