Startup India – An Overview
A newly launched business is referred to as a startup. It is typically made by one person or a small group of people, and it is small. Because it develops a new product or service that isn’t being offered elsewhere in the same way, it differs from other new firms. The crucial term is “invention”. The company either develops new goods or services, or enhances already-existing goods or services.
The Indian government’s flagship programme, Startup India, was launched in January 2016 and intends to build a strong ecosystem for fostering innovation and entrepreneurs in the nation, leading to long-term economic growth and significant job creation. The goal of this project is to enable companies to develop through innovation and design. The Indian government introduced the Startup India Action Plan, which addresses every aspect of the startup ecosystem, to carry out the initiative’s objectives.
Rebate for IPR filings
All companies that have registered with the Startup India Initiative are eligible for a reduction on the filing fees for patents, designs, and copyrights. In addition to receiving a 50% reduction on the trademark price and having your patent application expedited, you can also receive up to an 80% savings on the cost of filing a patent.
Startups can self-certify their compliance with 9 labour laws and 3 environmental laws for three to five years following their inception. For a period of three years, units that fall under one of the 36 white category industries (listed on the website of the Central Pollution Control Board) are exempt from three environmental regulations. The regulatory burden is lessened for startups, allowing them to concentrate on their main line of business while maintaining low compliance expenses.
Startups that register as DIPP Startups are eligible to submit bids for government contracts. Startup India businesses are not subject to the prerequisites of prior experience or turnover for filing government tenders. Startups approved by DIPP are exempt from including EMD when submitting bids to the government.
Platform for Startups Interaction
For any entrepreneur to get market awareness and peers in the field, networking is essential. The startups can network with other startups, well-known speakers, investors, etc. at several government-organized festivals and summits after registering under the DIPP Startup Initiative. Through the Government e-Marketplace, startups approved by DIPP can make direct sales to government agencies.
Startups approved by the DPIIT can raise money through the fund of funds initiative of Startup India. This project offers to give startups Rs. 10,000 crore, and the SIDBI would finance startups that have been given the go-ahead by implementing agencies.
Startup businesses like Private Limited Companies and LLPs would have their dissolution expedited by the Ministry of Corporate Affairs (MCA). Under the 2016 Insolvency and Bankruptcy Code, startups that meet minimum income requirements or have basic debt structures can be closed down in 90 days.
No Taxes Apply
Companies and LLP that were formed on or after April 1, 2016, but before March 31, 2022, are eligible for three tax-free years under Section 80IAC within the first 10 years of their formation, pending DPIIT approval. In addition to receiving Startup India Recognition accreditation, a separate application must be submitted for tax exemption.
Angel Tax Exemption
Startup entities recognised by India are eligible for an exemption from taxes on money received as an angel investment. The aforementioned tax credit is only available to startups that meet the necessary requirements and whose capital does not exceed 25 crores.
The following digitally filed documents, which have been self-attested by the designated startup representative, are required for startup recognition. The stakeholders are recommended to thoroughly examine the materials to prevent the DPIIT from rejecting their request for startup recognition.
- Certificate of Incorporation/Registration Director Information
- Details of patents and trademarks (Optional)
- PAN of Company
- Aadhar of the Authorized Signatory along with authorization letter
- supplementary docs stage by stage