InvestorQ : What is the plan that the government of India has to encourage start-ups culture in India?
Niti Shenoi made post

What is the plan that the government of India has to encourage start-ups culture in India?

Archita Jajjoo answered.
1 year ago

As part of the make in India program and also to provide relief to the businesses in these tough times, the government has proposed a number of ideas. Here are some of the benefits. To promote growth and help Indian economy, many benefits are being given to entrepreneurs establishing startups.

· There is a Simple process available to take start ups to the next levels. Government of India has launched a mobile app and a website for easy registration for start-ups. Anyone interested in setting up a start-up can fill up a simple form on the website and upload certain documents. The entire process is completely online.

· Government will also reduce costs substantially. Government will also provide high quality Intellectual Property Right Services including fast examination of patents at lower fees. The government will bear all facilitator fees and the start-up will bear only the statutory fees. They will enjoy 80% reduction in cost of filing patents.

· A Rs.10,000 crore rupees fund is set-up by government to provide funds to the start-ups as venture capital. The government is also giving guarantee to the lenders to encourage banks and other financial institutions for providing venture capital

· Tax holiday for 3 Years is also being offered to eligible customers. Start-ups will be exempted from income tax for 3 years provided they get a certification from Inter-Ministerial Board (IMB).

· Start-ups can apply for government tenders. They are exempted from the “prior experience/turnover” criteria applicable for normal companies answering to government tenders.

· The government will set up seven new Research Parks to provide facilities to start-ups in the R&D sector

· No time-consuming compliances is another big advantage. Various compliances have been simplified for start-ups to save time and money. Start-ups shall be allowed to self-certify compliance (through the Start-up mobile app) with 9 labour and 3 environment laws (for list of white industries which are eligible under self-compliance – click here” )

· Tax saving for investors will also come through. People investing their capital gains in the venture funds setup by government will get exemption from capital gains. This will help start-ups to attract more investors.

· In case of exit – A start-up can close its business within 90 days from the date of application of winding up

· Meet other entrepreneurs. Government has proposed to hold 2 start-up fests annually both nationally and internationally to enable the various stakeholders of a start-up to meet. This will provide huge networking opportunities.