- Startup India is a flagship initiative of the Government of India, intended to build a strong eco-system for nurturing innovation and Startups in the country that will drive sustainable economic growth and generate large scale employment opportunities.
- The Government through this initiative aims to empower Startups to grow through innovation and design.
- Government has defined Startups as an entity incorporated or registered in India not prior to five years, with annual turnover not exceeding INR 25 crore in any preceding financial year, working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
- This definition of start-ups will be applicable in case government schemes only.
- To Spread this Startup movement from digital sector to other sector(agriculture, manufacturing, social sector, healthcare, education, etc) and from existing tier 1 cities to tier 2 and tier 3 cities including semi-urban and rural areas,Government has made an action plan which is divided in three parts.
Simplification and Handling:
Compliance Regime based on Self-certification- To reduce the
regulatory burden on Startups thereby allowing them to focus on their core
business and keep compliance cost low
Startup India Hub- To create a single point of contact for
the entire Startup ecosystem and enable
knowledge exchange and access to funding
Rolling out of Mobile App and Portal- To serve as the single
platform for Startups for interacting with Government and Regulatory Institutions
for all business needs and information exchange among various stakeholders
Legal Support and Fast-tracking Patent Examination at Lower Costs-
To promote awareness and adoption of IPRs by Startups and facilitate them in
protecting and commercializing the IPRs by providing access to high quality Intellectual
Property services and resources, including fast-track examination of patent
applications and rebate in fees.
Relaxed Norms of Public Procurement for Startups- To provide
an equal platform to Startups (in the manufacturing sector) vis-à-vis the
experienced entrepreneurs/ companies in public procurement
Faster Exit for Startups- To make it easier for Startups to
wind up operations. The Insolvency and Bankruptcy Bill 2015 (“IBB”), tabled in
the Lok Sabha in December 2015 has provisions for the fast track and / or
voluntary closure of businesses.
Funding Support and Incentives
Providing Funding Support through a Fund of Funds with a
Corpus of INR 10,000 crore- To provide funding support for development and
growth of innovation driven enterprises
Credit Guarantee Fund for Startups-To catalyse entrepreneurship
by providing credit to innovators across all sections of society. Debt funding
to Startups is also perceived as high risk area and to encourage Banks and
other Lenders to provide Venture Debts to Startups, Credit guarantee mechanism
through National Credit Guarantee Trust Company (NCGTC)/ SIDBI is being
envisaged with a budgetary Corpus of INR 500 crore per year for the next four
years.
Tax Exemption on Capital Gains-To promote investments into
Startups by mobilizing the capital gains arising from sale of capital assets. Due
to their high risk nature, Startups are not able to attract investment in their
initial stage. It is therefore important that suitable incentives are provided
to investors for investing in the Startup ecosystem. With this objective,
exemption shall be given to persons who have capital gains during the year, if
they have invested such capital gains in the Fund of Funds recognized by the
Government.
Tax Exemption to Startups for 3 years-To promote the growth
of Startups and address working capital requirements
Tax Exemption on Investments above Fair Market Value-To
encourage seed-capital investment in Startups
Industry-Academia Partnership and Incubation
Organizing Startup Fests for Showcasing Innovation and Providing
a Collaboration Platform-To galvanize the Startup ecosystem and to provide
national and international visibility to the Startup ecosystem in India
Launch of Atal Innovation Mission (AIM) with
Self-Employment and Talent Utilization
(SETU) Program-To serve as a platform for promotion of world-class Innovation Hubs,
Grand Challenges, Startup businesses and other self-employment activities,
particularly in technology driven areas
Harnessing Private Sector Expertise for Incubator Setup-To
ensure professional management of Government sponsored / funded incubators,Government
will create a policy and framework for setting-up of incubators across the
country in public private partnership
Building Innovation Centres at National Institutes-To propel
successful innovation through augmentation of incubation and R&D efforts
Setting up of 7 New Research Parks Modelled on the Research
Park Setup at IIT Madras-To propel successful innovation through incubation and
joint R&D efforts between academia and industry
Promoting Startups in the Biotechnology Sector-To foster and
facilitate bio-entrepreneurship
Launching of Innovation Focused Programs for Students-To
foster a culture of innovation in the field of Science and Technology amongst
students
Annual Incubator Grand Challenge-To support creation of
successful world class incubators in India
This comment has been removed by a blog administrator.
ReplyDelete