Category : Entrepreneurs
Narendra Modi’s announcements and StartupIndia policy pointers:
- Compliance regime based on self-certification. Labour laws – no inspection for 3 years
- Startup India hub – single-point contact (‘friend, mentor, guide’)
- Mobile app to be launched on April 1: registration of startup company in one day | Also portal for clearances, approvals and registrations
- Fast-track mechanism for startup patent applications
- Panel of legal facilitators for startups to file IP (patents, designs, trademarks) – costs borne by government
- 80% rebate on filing of patent applications by startups, as compared to other companies
- Relaxed norms of public-procurement for startups. No requirement of turnover or experience, but no relaxation of quality
- Faster exits for startups (Insolvency and Bankruptcy Bill), eg: wind up within 90 days
- Fund of funds – initial corpus – INR 2,500 crore, later on 10,000 crore
- Credit guarantee fund for startups
- Tax exemption on capital gains
- Tax exemption to startups for 3 years to promote growth
- 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
- Innovation Core Programs for school students in 5 lakh schools
- Annual Incubator Grand Challenge to create world class incubators in India
- National and International Startup Festivals to provide visibility
Conditions for taking benefits of StartupIndia Scheme:
- 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.
- Five years must not had elapsed from the date of incorporation/registration.
- Annual turnover (as defined in the Companies Act, 2013) in any preceding financial year must not exceed Rs. 25 crores.
- Startup must be working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
- 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.
- 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
- The Startup must not be formed by splitting up, or reconstruction, of a business already in existence.
- 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.