CENTRAL GOVERNMENT SCHEMES
Startup India, Standup India-2016
Launched: 16 January 2016
Main Objective: To provide support to all start-up businesses in all aspects of doing business in India.
Under the scheme, the start-ups will adopt self-certification to reduce the regulatory liabilities. An online portal, in the shape of a mobile application, will be launched to help start-up founders to easily register. The app is scheduled to be launched on April 1.
ABOUT COMPLETE SCHEME
Prime Minister Mr. Narendar Modi had introduced the ‘Start up India, Stand up India’ initiative on Independence Day. Backing up on his promise, on 16th January 2016, he unveiled a detail action plan for start-up enterprises under this scheme.
Start-up is an entity registered in India. Start-up is the company which is not older than 5 years and its annual turnover should not exceed 25 Crore. It works towards innovation, development, deployment or commercialisation of new products driven by technology or intellectual property. Such an entity is not formed by splitting up, or reconstruction, of a business already in existence.
Start-up’s aim is to develop and commercialise which creates or add value for customers or workflow. Here are some features which have benefited to entrepreneur.
1. Single Window Clearance even with the assistance of a portable application
2. 10,000 crore reserve of assets
3. Changed and all the more benevolent Bankruptcy Code to guarantee 90-day leave window
4. Opportunity from perplexing investigations for a long time
5. Opportunity from Capital Gain Tax for a long time
6. Flexibility from assessment in benefits for a long time
7. Dispensing with formality
8. 80% diminishment in patent enlistment expense
9. Self-accreditation consistence
10. Advancement center point under Atal Innovation Mission
11. Beginning with 5 lakh schools to target 10 lakh youngsters for development program
12. New plans to give IPR assurance to new businesses and new firms
13. Stand India over the world as a start-up center point
Benefits – If you are eligible for the scheme Start Up India–
1. Tax holiday of first 3 year – No income tax is payable on all the profit earned in first 3 years
2. No inspection for first 3 years under labour law – In addition, environment law compliance is required only post-self certification.
80 % Rebate in patent fee and fast track examination and processing of application for patent.
Manufacturing sector startup are exempt from the criteria of prior ‘experience/ turnover’ without any relaxation in quality standards or technical parameters in public procurement (by government).
3. Self Certification Compliance – This is a amazing step by the government, but Startups have to follow all the law regarding payment of gratuity, provident fund, contract labor regulations etc. The only difference is that no labour inspector will at your place for for verification but after 3 years you may be penalized if any default is found in compliance of all the matters.
4. No Capital gain tax if investor exits form startup and invest the gain in the fund as recognized by govt.
5. equal opportunity in government procurement, a Rs 500-crore credit guarantee scheme and easier exit norms. Japanese Softbank, which had already invested $2 billion in Indian startups, has pledged total investments of $10 billion.