Would you refuse it if someone offers you a helping hand to start a new venture? Of Course Not!! Why?? Because it can turn your life around overnight and that too in the best way.
There are so many of people around us who have thousands of ideas to start a business venture but doesn’t know how to start, where to start, how to manage, who will guide them to be on the right track and so on. STARTUP INDIA is the answer for all these business related questions. Oh Yeah!! STARTUP INDIA campaign has come up with providing learning and development module that would offers free entrepreneurship courses to newbies. Under this campaign, both financial support (like equity investments, debt financing etc.) and non-financial support (like mentoring, incubation, technical experts etc.) would be given to new start-ups.
WHAT IS STARTUP INDIA
The Government of India started an initiative named as “STARTUP INDIA” for all those new talents with innovative business ideas, to support them, who are lacking somewhere in terms of funds, investments, business guidance, technical knowledge, business management skills etc. The Government has given assurance to provide all these required facilities to support such young and new talents so that their idea will implement and they will grow better. This “startup India” campaign was first announced by our Prime Minister, Sh. Narendra Modi during his 15th August address in 2015 and then actual came into existence on 16 January 2016. According to him, below three pillars would be the action plans for this initiative:-
- Simplification and Handholding
- Funding Support and Incentives
- Industry-Academia Partnership and Incubation.
It is believed that there is no shortage of talents in India. We just need to become helping hands for all these talents so that our economy will grow at required rate and country will become more developed as compare to other countries. So ultimately, the main motto of this campaign is to be developed and achieve required economic rate of growth. As, the success of this campaign will definitely make our India, a strong nation with better economy.
As of now, around thousands of applications have already been received under this campaign. But out of which around seven hundred (in Delhi itself) got the green ticket to enter in this campaign. The reasons for the rejection of leftover applications might be the non-eligibility. As, there are some criteria which should be adhere of. Otherwise, your startups would shut down due to unnecessary reasons. So, let’s discuss in brief the eligibility and non eligibility of startup campaign.
ELIGIBILITY FOR STARTUP INDIA CAMPAIGN
- An entity should be incorporated or registered in India upto a period of seven years (this age limit was of five years but later extended to seven years) from the date of incorporation or registration. If it’s a startup in biotechnology sector then, ten years from the date of incorporation or registration.
- An entity should be registered or incorporated in India as a private limited company or as a partnership firm or as a limited liability partnership.
- An entity should be registered or incorporated in India with an annual turnover not exceeding the limit of Rs 25 Crores in any of the financial years (since incorporation or registration).
- An entity should be working for the innovation or improvement or development for the manufactured products or services or processes.
- An entity should be working at a large scale so that this would help in achieving high potential of employment and fulfill the desired needs of wealth creation.
NON-ELIGIBILITY FOR STARTUP INDIA CAMPAIGN
- If an entity formed by splitting up or reconstruction of an existing business shall not be treated as Startups and cannot be the part of this campaign. Hence, they may lack the eligibility for this campaign.
- If an entity have already completed seven years (this age limit was of five years but later extended to seven years) from the date of registration or incorporation and in case, if it’s a startup in biotechnology sector and have been completed ten years from the date of registration or incorporation then such entities also cannot be the part of this campaign.
- If the turnover of any of the entities exceeds the limit of Rs 25 Crore during any of the financial years since incorporation or registration then this may also lack the eligibility for startup campaign.
BENEFITS OF STARTUP INDIA
Startup India is going to provide various benefits to not only new startups but to investors too. Let’s discuss in details:-
- Tax Benefits – There would be no tax for first three years of the starting of business venture under Startup India Scheme. The only condition is that your startup must acquire a certificate of an eligible business from an Inter Ministerial Board of Certification, constituted by DIPP (Department of Industrial Policy and Promotion). The process for acquiring approval can be made through an online application (via mobile app or via portal set up by the DIPP).
- Self Certification – Under this scheme, Self certification compliance would be provided to startups, related to several labour and environment laws like provident fund, gratuity, contract labour, air and water pollution acts etc. Also, for the first three years no inspection would be conducted.
- Simple Registration Process – In this regard, a mobile app and a website has been launched. So, that you can register yourself with either mobile app or through online portal. Here, you just need to fill a form and then upload required documents. This way makes registration of startups a simple process.
- Funding Benefits – Under funding benefits, The Government has announced a total fund of Rs 10,000 Crores to be provided to new startups as a venture capital. And Rs 2500 Crore guarantee fund would also be provided over four years so that startups may cover their risk.
- Gaining Knowledge – The opportunity would be provided to startups to learn from business experts and experienced entrepreneurs. This would help several new startups to understand the core of business and their management moves.
- Programmes – Many core programmes related to innovation would be introduced in 5 lakh schools. These programmes would be available in both languages i.e. Hindi and English. Being an online learning programme this would be provided absolutely free. This step would surely help in encouraging research & innovation among several students.
- Patent Security – As we all know patent registration process is so much expensive that we require lots of money for the same. But under the startup scheme, 80% rebate would be given to new startups for filing patent applications. This means that you just need to spend 20% of your money and the rest will bear by the Government. Also, various steps have already been taken to protect valuable Intellectual Property Rights. Fast-track examination of patent applications is one of that.
- Incubator – In general terms, incubator is a kind of company that helps in developing new startups by providing several services like management training, business knowledge, office space for business operation etc. As of now, a large number of incubators have already been setup.
- Capital Gain Tax – Capital Gain Tax would also be exempted on investment made by incubators in startups. This step would also help many startups to attract more and more investors.
- Windup – Under this scheme, even the windups (if required due to uncertain reasons like bankruptcy or closure) would also become easy for new ventures. The windups of business ventures would take place within a faster period of 90 days only (from the date of application of windup).